Definition
In the R/3 System, you represent the systems to be maintained as technical objects. Technical objects are managed in the master data of the R/3 System as functional locations and pieces of equipment.
A functional location is an organizational unit within Logistics that structures the maintenance objects of a company according to functional, process-oriented or spatial criteria.
A functional location represents the place at which a maintenance activity is to be performed.
A piece of equipment is an individual, physical object that is to be maintained as an autonomous unit.
Structure Functional locations are structured hierarchically to represent the structure of the system to be maintained. Functional locations of different hierarchies can be linked to one another. In this way, you can represent the global network structure of a technical system, the links between different technical systems and the dependencies between individual functional locations.
A piece of equipment can be installed at a functional location or in a superior piece of equipment for a certain period of time. In the course of its useful life, it can be used at different installation locations.
Equipment can also be assigned hierarchically, enabling you to represent pieces of equipment that have a more complex structure. Pieces of equipment can also be linked to one another. In this way you can represent the global network structure of a technical system and the dependencies between the individual pieces of equipment.
Source: http://help.sap.com/saphelp_470/helpdata/en/af/cb5406461411d189f20000e81ddfac/content.htm
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