What is underlying asset in SAP FI-AF-ARO - Asset Retirement Obligation Management?

SAP Term: underlying asset

• Component: FI-AF-ARO

• Component Name: Asset Retirement Obligation Management

• Description: An asset for which an asset retirement obligation exists and for which a corresponding asset could exist, but must not necessarily exist, in SAP FI Asset Accounting.

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• Key Concepts: 
  Underlying asset is a term used in the SAP FI-AF-ARO Asset Retirement Obligation Management component. It refers to the physical asset that is subject to an asset retirement obligation (ARO). An ARO is a legal or contractual obligation to remove, restore, or remediate a physical asset at the end of its useful life. 
  
  How to use it: 
  In SAP FI-AF-ARO Asset Retirement Obligation Management, the underlying asset is used to identify the physical asset that is subject to an ARO. This information is used to calculate the estimated cost of the ARO and to track any changes in the estimated cost over time. 
  
  Tips & Tricks: 
  When entering information about an underlying asset in SAP FI-AF-ARO Asset Retirement Obligation Management, it is important to be as accurate and detailed as possible. This will ensure that the estimated cost of the ARO is calculated correctly and that any changes in the estimated cost are tracked accurately. 
  
  Related Information: 
  For more information about SAP FI-AF-ARO Asset Retirement Obligation Management, please refer to the official SAP documentation.