456 – Sublet Repairs - Service

Service Department

Sales Synopsis

Account 456

656 – Sublet Repairs - Service

Service Department

Cost of Sales Synopsis

Account 656

Remarks:

Body and Paint Sublet Work should be recorded in Account 506 - Sublet Repairs – Body Shop.

It is anticipated that sublet work sold to customers will create a gross profit for the retailer.

Individual purchases of sublet work should be authorized by a properly executed purchase order.  The purchase order should be issued based upon a repair order indicating the work to be performed.  The repair order number, the purchase order number, and the vendor's invoice number should be indicated on each document for cross-referencing purposes.

The sublet account should be scheduled and reconciled monthly.  Missing charges on Repair Orders should be followed up with the Service Manager on a timely basis and processes corrected to ensure all future work is billed out properly.

Care must be exercised to assure that all sublet work is charged on a repair order.  Frequent reconciliation of all repair orders indicating sublet work to be performed, with authorized purchase orders and vendor's invoices covering sublet work, will aid in charging out all sublet work to the proper sources.

Periodic analyses should be made of all sublet work to ascertain the volume of this type of business and to determine the profitability of doing the work by the retailer rather than subletting it.