In SAP Plant Maintenance, the ability to install a piece of equipment at a functional location is fundamentally controlled by its equipment category. The system configuration for each equipment category includes a specific setting that determines whether installation at a functional location is permitted, not permitted, or permitted with a warning. This setting acts as a direct prerequisite; if the category is not configured to allow installation, the system will prevent the user from assigning the equipment to a functional location.

B. Allow the combination of equipment category and object type to be installed in a functional location: This is a secondary check for refining which equipment can go into which type of location, not the primary prerequisite for installation itself.

C. Set the installation flag for a piece of equipment: There is no such "installation flag" on the individual equipment master record that enables or disables its installation capability.

D. Set the installation flag for a functional location category: The control for installation resides with the object being installed (the equipment category), not the category of the location where it is being installed.

1. SAP S/4HANA Documentation

Asset Management: "Equipment Category". The documentation specifies that the equipment category controls key properties

including whether equipment can be installed at functional locations. This is a central control function defined in customizing. (Path: SAP Help Portal -> S/4HANA -> Asset Management -> Technical Objects (PM-EQM-SF) -> Equipment -> Equipment Category).

2. SAP Customizing Implementation Guide (IMG): The specific configuration step that governs this is located at: SPRO -> Plant Maintenance and Customer Service -> Master Data in Plant Maintenance and Customer Service -> Technical Objects -> Equipment -> Equipment Categories -> Define Installation at Functional Locations. The documentation for this node explicitly states that for each equipment category

you define if installation is allowed.

3. SAP Training Courseware (e.g.

TS413 - SAP S/4HANA Asset Management): Unit on Technical Objects. This official course material details that the equipment category is the primary customizing object for controlling the properties and allowed transactions for equipment

including the prerequisite for installation at a functional location. (Reference: TS413

Unit 3: Technical Objects).