14 – Customer Relations Adjustments

Vehicle Selling Expenses

Synopsis

Account 14

Debits

Credits

  1. The internal selling price of performing free inspections and service on vehicles after delivery to customers.

  2. Additional pre-delivery adjustments made after delivery which are not warranty eligible.

  3. Any cost to the retailer to satisfy a customer as a goodwill measure.

 

 

 

Remarks:

Variances that can be specifically attributable to the Service, Parts and Accessories, or Body Shop Department should be charged to their Policy Work Account 67.

Charges to this account should be made at the internal selling price of labor performed and parts used.

The dealer should carefully review charges to this account with the new or used sales manager and/or service manager.