450A – Subaru – Customer Labor

Service Department

Sales Synopsis

Account 450A

Debits	Credits
	The actual selling price of ICE Customer labor as described in Debits.

650A – Subaru – Customer Labor

Service Department

Cost of Sales Synopsis

Account 650A

Debits

Credits

The cost of ICE Customer labor performed in the Subaru service department, regardless of brand worked on, IF the Retailer is a sole Subaru Retailer. This includes trades of other brands. If the Retailer sells and reports NEW other brands on their Financial Statements, use 450B - Other Makes Customer Labor. Labor sold on Extended Service or Maintenance Plans should be reported in A/C 473 (Subaru-only retailers - all brand labor), or A/C 460B - if New Other Brands are sold and reported on the Subaru Financial Statement. Express Service should be reported in A/C 475 - Customer Mechanic Express Service R.O.

Remarks:

The balances in these accounts represent productive mechanical labor on completed ICE customer repair orders.

Costing procedures should be reviewed periodically to determine that costs are accurate and match payroll records or there will be an unreconciled balance in work in process.

When technicians are employed on a salary, hourly, or guaranteed basis, the amount paid in excess of their actual productive earnings should be charged to Subaru - Adjustment Cost of Labor Sales (Account 657A).

When an employee's time is divided, (such as a working shop foreman who spends part of his time in a supervisory capacity and the remainder in performing productive labor; or a porter who spends part of his time in a productive capacity such as washing cars or new car clean-up, and the remainder performing utility jobs) the salaries and/ or wages paid should be appropriately divided between the cost of sales account and the applicable expense account.

Customer repair orders should state specifically the operations to be performed and should be signed by the customer. Each customer repair order should indicate the type of vehicle serviced (passenger car, commercial vehicle, etc.).

All work performed by the Service Department should be authorized and recorded on repair orders.