1. SAP Glossary
  2. Asset Retirement Obligation Management
  3. target value


What is 'target value' in SAP FI-AF-ARO - Asset Retirement Obligation Management?


target value - Overview

  • Component: FI-AF-ARO

  • Component Name: Asset Retirement Obligation Management

  • Description: The result of a calculation. Within the framework of an asset retirement obligation valuation, a given base value on a base date is usually discounted or compounded for a specific target date. The calculated value is the target value.


target value - Details


  • Key Concepts: Target value is a term used in SAP FI-AF-ARO Asset Retirement Obligation Management. It is the amount of money that an organization must pay to fulfill its obligations related to the retirement of an asset. This amount is calculated based on the estimated future costs associated with the retirement of the asset.
    How to use it: The target value is used to determine the amount of money that must be set aside in order to cover the costs associated with the retirement of an asset. This amount is calculated based on the estimated future costs associated with the retirement of the asset. The target value can then be used to create a budget for the retirement of the asset.
    Tips & Tricks: It is important to ensure that the target value is accurate and up-to-date in order to ensure that enough money is set aside for the retirement of an asset. It is also important to regularly review and update the target value in order to ensure that it remains accurate and up-to-date.
    Related Information: The target value is closely related to other terms such as residual value, salvage value, and net book value. It is important to understand how these terms are related in order to accurately calculate and manage the target value for an asset.

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target value - Related SAP Terms

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