218 - Holdback Receivables

218 - Holdback Receivables - Subaru

Current Assets

Receivables

Synopsis

Account 218

Debits

Credits

Amount due from Subaru for factory holdback on new vehicles invoiced to the retailer.

Credit memo from Subaru in payment of factory holdback for new vehicles invoiced to retailer during the payment period.

Remarks:

As in all Accounts Receivable accounts, it is necessary to maintain a detailed schedule. This schedule should include:

Vehicle Identification Number
Amount of Holdback per factory invoice
Vehicle invoice Date
Other pertinent details to the claim

All outstanding items after the payment period should be promptly followed up to determine action necessary to clear the receivable. When trading vehicles with other retailers, it should be decided up front whether dealers are trading holdback as well. All holdback is paid to the ORIGINALLY INVOICED dealer.

Note: