79 – IT Applications

Operating Expenses

 

Synopsis

Account 79

Debits

Credits

  1. ALL IT expenditures not directly related to costs incurred with the Dealership Management System provider that are accounted for the Dealership Management System (DMS) Account 77.  Examples of expenditures that would be debited here include, vehicle appraisal applications such as V-Auto, etc., Subarunet charges, Subaru PRIME, X-time and Care Connect system charges, etc.  Vehicle and/or parts and service marketing campaign costs associated with X-time and Care Connect should be charged to Internet Advertising New & Used Account 30, and Internet Advertising Service, Body, P&A Account 34.

 

 

Remarks:

·   Data processing expenses that would be charged to this account include repairs, support or annual maintenance of retailer owned data processing equipment; rental and/or lease of data processing equipment; telephone expenses directly related to data processing equipment operation; the cost of program writing; electronic accounting services (including payroll preparation).

·         Large payments made for programming of "in-house" computers should be debited to Prepaid Expenses (Account 269).  The monthly write-off of such prepaid expenses would be to this account.

·         Supplies used exclusively for "in-house" data processing equipment, such as paper, account forms, etc., should be charged to this account.

·         Expenses in this account should be distributed to the benefiting operating department or prorated as applicable.