455B – Other – Internal Labor

Service Department

Sales Synopsis

Account 455B

655B – Other – Internal Labor

Service Department

Cost of Sales Synopsis

Account 655B

Remarks:

The balances in these accounts represent internal mechanical labor on all completed repair orders involving non-Subaru vehicles, only if the Retailer also sells and reports Other Makes on their Financial Statement, otherwise Exclusive Subaru Retailers should use the Subaru reporting accounts for all Service and Parts activity.  All incomplete repair orders are work-in-process and should be handled as outlined in Work in Process – Labor (Account 247).

Charges made on the repair order for separate items, such as miscellaneous shop supplies, should be included in the gross labor sales price and reported in this sales account for accounting purposes.  Such items should not be considered as offsetting credits to expense or as other income unless required by law .

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 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.

Internal repair orders should be authorized by the department manager requesting the work to be performed, indicating the authorized amount to be charged.