13 – Compensation F&I / Service Contracts

Vehicle Selling Expenses

Synopsis

Account 13

Debits

Credits

  1. Compensation earned by F&I Managers for the sale of finance, insurance, service contracts, and Aftermarket sales.

  2. Compensation earned by Salespeople for the sale of finance, insurance, service contracts, and Aftermarket sales.

  1. Adjustments to previous debits to this account as required, e.g., for a Charge Back or any income deemed to be unearned after it was recorded.

 

 

Remarks:

All F&I and Salesperson pay plans should be in writing and outline the treatment of specific commissionable items, including charge backs.

Compensation for F&I Managers should not be recorded in Account 21 – Salaries Supervision.