Can a rotating asset possess both an inventory value and an issue cost?

A rotating asset can indeed possess both an inventory value and an issue cost. In the context of asset management within systems like Maximo, a rotating asset refers to assets that are continuously used and reused, such as tools or portable equipment. These assets are tracked for their cost values as they remain part of inventory while also incurring costs when they are issued for use.

The inventory value represents the worth of that asset as it is listed in stock, considering factors like procurement costs and accumulation over time. On the other hand, an issue cost comes into play when the asset is actually removed from the inventory for operation or usage—reflecting expenses associated with its deployment.

Understanding the balance between inventory value and issue cost is critical for effective financial management and asset utilization in Maximo. It allows organizations to accurately report on their financial standings and to manage assets effectively throughout their lifecycle.