803 – Doc and Admin Fees – New Vehicles

Additions To Income

Synopsis

Account 803

Debits

Credits

 

  1. All Documentation or Administrative fees allowable by law to be collected on a new vehicle sales contract.

 

Remarks:

Certain states have limitations as to the amount and legality of doc fees on vehicle sales contracts.  Check with your state Department of Motor Vehicles to assure compliance.  This income should be recorded in Account 803 as opposed to the vehicle gross profit since the amount allowable varies by state.  This provides for a more accurate gross profit comparison between dealers.