This chapter discusses these topics:
Section 8.1, "Generating the Rental Item Cost Calculation Report (R54R401)"
Section 8.2, "Generating the Asset Depreciation Allocation Report (R54R400)"
This section provides an overview of the Rental Item Cost Calculation report, lists a prerequisite, and discusses how to:
Run the Rental Item Cost Calculation report.
Set processing options for the Rental Item Cost Calculation program (R54R401).
You use the Rental Item Cost Calculation program (R54R401) to get the extended cost of the rental contract for a rental item. The system calculates extended cost using the formula:
Rental Item Cost = Number of rental days or total days (based on the value in the Number of Days processing option) * the cost associated with the cost method (specified in the Owned Asset Cost Method field in the Rental Constants table (F54R01).
The system retrieves the cost from the Item Cost table (F4105) depending on the inventory cost level specified in the Item Master program (P4101).
See "Setting Up Item information" in the JD Edwards EnterpriseOne Applications Inventory Management Implementation Guide
If you set the Number of Days processing option to use a calendar, the system uses the workday calendar for the business unit in the rental contract detail line, and calculates the number of rental days as follows:
If the rental contract has started in the fiscal period for which you run the report, the system calculates the number of rental days from the start date of the contract through the end date of the contract or through the last day of the fiscal period, whichever is the shortest. The system counts only the work days in the calendar.
If the rental contract has started in a prior period, the system calculates the number of rental days from the first day of the period through the end date of the contract or the last day of the fiscal period, whichever is the shortest. The system counts only the work days in the calendar.
If you set the Number of Days processing option to use the total number of days, the rental days is the total number of days (including holidays and weekends) within the date range. The system calculates the number of rental days as follows:
If the rental contract has started in the current fiscal period, the system calculates the number of rental days from the start date of the contract through the end date of the contract or the last day of the fiscal period, whichever is the shortest.
If the rental contract has started in a prior fiscal period, the system calculates the number of rental days from the first day of the period through the end date of the contract or the last day of the fiscal period, whichever is the shortest.
Before you use the Rental Item Cost Calculation program, you must complete the Owned Asset Cost Method field in the Rental Constants program (P54R01).
Select Periodic Processing (G54R20), Rental Item Cost Calculation.
Processing options enable you to specify the default processing for programs.
Specify a number that identifies a fiscal year.
If you leave this processing option blank, the system uses the current fiscal year of the rental company.
Specify a number that indicates the current accounting period. The current period number is used to determine posted-before and posted-after cut-off warning messages. It is also used as the default accounting period in the preparation of financial reports.
If you leave this processing option blank, the system uses the current period of the rental company.
Specify whether to use a calendar to calculate the number of rental days. Values are:
Blank: Use a calendar. The system uses the workday calendar for the business unit.
1: Total number of Days. If you enter this value, the system counts the number of rental days in the fiscal period.
This section provides an overview of the asset depreciation allocation report, lists a prerequisite, and discusses how to:
Run the Asset Depreciation Allocation report.
Set processing options for the Asset Depreciation Allocation program (R54R401).
The Calculate Depreciation program (R12855) calculates the depreciation expense of an asset. You run the Asset Depreciation Allocation program (R54R400) to move this depreciation expense from the renting business unit to the business unit that has taken the asset on rent.
The amount of depreciation expense to be moved is based on the number of days the business unit has rented the asset. The system calculates the percentage of the asset depreciation expense for a month using the formula:
Percentage of asset depreciation expense to be moved = Total rental days/the days in the current period * 100
You can run the program in proof mode or final mode. You can run the report first in proof mode to review the information. When you run the report in final mode, the system updates the Index Computation Entry File table (F0912A) with the document type JA. Once the records are moved to the Indexed Allocation program (P09121), you execute the Indexed Computation Compute and Print program (R093021) to create the journal entries.
Before you use the Asset Depreciation Allocation program, you must run the Calculate Depreciation program (R12855) for a serialized asset.
Select Periodic Processing (G54R20), Asset Depreciation Allocation.
Processing options enable you to specify the default processing for programs.
Specify a number that identifies the fiscal year.
If you leave this processing option blank, the system uses the current fiscal year of the rental company.
Specify a number that indicates the current accounting period. The current period number is used to determine posted-before and posted-after cut-off warning messages. It is also used as the default accounting period in the preparation of financial reports.
If you leave this processing option blank, the system uses the current fiscal period of the rental company.
Specify whether to run the program in proof or final mode. Values are:
Blank: Run the program in proof mode.
1: Run the program in final mode and update the Index Computation Entry File table (F0912A).
Specify whether to print the report with summary or detail information. Values are:
Blank: Print the report with summary information.
1: Print the report with detail information.
Specify whether to use a calendar to calculate the number of rental days. Values are:
Blank: Use a calendar.
1: Total number of Days. If you enter this value, the system counts the number of rental days in the fiscal period.
Specify the contra/clearing account that you will use to balance or offset depreciation cost for your asset rental. You must enter the account in the business unit.object.subsidiary format.
If you leave this processing option blank, the system uses the accounting details of the asset from the Equipment Master table(F1201).
Specify the object account to where the system moves the asset depreciation cost. The object account is the portion of a general ledger account that refers to the division of the Cost Code (for example, labor, materials, and equipment) into subcategories. For example, you can divide the Cost Code for labor into regular time, premium time, and burden.
If you leave this processing option blank, the system uses the object account of the asset from the Equipment Master table(F1201).
Specify a subset of the object account that you entered in the Object Account processing option. Subsidiary accounts include detailed records of the accounting activity for an object account.
If you leave this processing option blank, the system uses the subsidiary details of the asset from the Equipment Master table(F1201).