Understanding the Asset Depreciation Allocation Report (R54R400)

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.