The resolution of the functional locations of equipment on SAP to operational areas is:
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Any areas directly assigned to the functional location in which the equipment is installed are used.
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Any areas assigned to functional locations higher up the functional location hierarchy that are not less specific than the areas assigned to the functional location the equipment is installed in are added as well.
For example, if an equipment is installed at functional location 00-ABC-DEF and the functional locations in the hierarchy are assigned operational areas as follows:
00 : Process System
00-ABC: Process System > Combustion Turbine 1
Operations > Administration Buildings
00-ABC-DEF: Process System > Combustion Turbine 1 > HRSG-1
Then the operational areas that will be assigned to the equipment are:
Operations > Administration Buildings
Process System > Combustion Turbine 1 > HRSG-1
Process System and Process System > Combustion Turbine 1 are ignored because they are less specific than Process System > Combustion Turbine 1 > HRSG-1