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Siemens Industry Online Support
Siemens AG
Entry type: FAQ, Entry ID: 51930734, Entry date: 08/31/2011
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What must be considered when using the SIMATIC S7 FM354 module with incremental encoder?

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Description
When using an incremental encoder the resolution of the encoder must not exceed 8000 steps/rotation. If the resolution is exceeded (10,000 steps/rotation, for example), then the zero mark monitoring function can no longer be executed correctly.
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http://www.siemens.com/industrialsecurity.