Difference between asset, rotating asset, sub assembly and spare part

Sometimes for an EAM beginner, it becomes difficult to differentiate among asset, rotating asset, sub assembly and spare part. Hence some tips.
Asset - A piece of hardware which resides in a location. You do maintenance on this. Carries an individual number.

Sub Assembly - Component of a piece of asset, each one of which has it's own asset number. Actually a child asset.

Spare Parts - Replaceable, disposable, repair parts. Not tracked as asset but tracked as Inventory. Tracked by quantity.

Ask following simple questions to yourself before deciding on spare parts or assets:

- Are they asset sub-assemblies?

- Do they have their own asset number?

- Do you want to track maintenance on each of them?

- Are extras stored in inventory?

If the answers are "Yes', they are subassemblies (Actually an asset). Then create individual asset numbers for them.

If "No", they are spare parts. Then, create inventory item numbers for them and associate them with asset as spare parts.
Rotating Asset - An asset which has item number also. Confused!!!!! Let us assume, you have an asset, which you want to send to vendor for repair. As per the standard business practice, you will send the asset to vendor through your storeroom (inventory). In order to have the asset tracked in storeroom (inventory), you need to have an item number also. Hence create an item number, specify it as "Rotating" (Item Master property). Attach this item number to the asset. Your asset becomes rotating.

Courtesy: An old compilation from Infy Team