I think its nowhere linked to SD, it will come under PM
An equipment is a representation of a single physical object that is handled at a much more granular level than materials. An equipment is typically installed somewhere and can have extra information (like warranty or measurement data) and can have maintenance done on it.
Usually it's the individualization and maintenance aspect that determines if an object is an equipment or a material (a single entity for which you want to track data like maintenance work, history, or costs)
regards
Satish
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