Equipment and Functional Location
Equipment is used to represent individual objects for which you are creating a history for the purposes of Plant Maintenance or Customer Service.
Equipment can be independent, individual objects, such as a tool or vehicle, or it can be an installed aggregates at a functional location, such as pumps, motors, or gears.

The installation location of an object and the installed object can be represented separately in the system. This differentiation allows for the separate tracking of damages, documenting whether the damage is related to the conditions at the installation location (functional location), or from the inferior quality of the installed object (object). The cause of damage is either updated to the functional location or piece of equipment.
Usage times can be recorded from the equipment view (where the equipment was installed) and functional location view (which pieces of equipment were installed at this functional location).
Autonomous Equipment Hierarchy

You can use equipment hierarchies if the use of functional locations is not supported in your company or individual moveable aggregates have a complex structure.
The equipment hierarchy differs from a functional location in that it is not controlled by a structure indicator, so no relationship exists between the equipment numbers in the hierarchy. Moreover, in the Plant Maintenance Information System, costs cannot be summarized at the top level of equipment for the hierarchy beneath.
Equipment hierarchies can be structured to suit individual requirements. In contrast to the installation at the functional location, there are no installation specifications for installing another piece of equipment. In other words, pieces of equipment that are not installed at a functional location can be installed in another piece of equipment.
Data transfer from the superior equipment to the subordinate equipment equates with data transfer from the functional location to the equipment.
Equipment Hierarchy and Functional Location

You can install equipment hierarchies, similar to individual pieces of equipment, at functional locations. Data is transferred according to the same principle as between functional locations and pieces of equipment or equipment hierarchies.
If the equipment usage periods are displayed at the functional location, the pieces of equipment and the entire hierarchy can be seen at the top of an equipment hierarchy.
In Customizing, you can create equipment categories to which change documents are written. Changes to the master records are then documented as a change document. Each change is recorded in a separate document and contains a document number.
You can define and display an end-of-use date for technical objects using the Create Technical Object or Change Technical Object functions. You will also find this new field in the output list of the Technical Object List.
Note
You need to activate the Business Function LOG_EAM_CI_17 in order to define end-of-use dates for Technical Objects.