470 – Subaru – Customer Labor Express

Service Department

Sales Synopsis

Account 470

Debits

Credits

 

  1. The actual selling price of Express llabor sold to customers on completed repair orders.

670 – Subaru – Customer Labor Express

Service Department

Cost of Sales Synopsis

Account 670

Debits

Credits

  1. The cost of Express Subaru labor sold to customers.

  2. The cost of Express labor on non-Subaru models IF the Retailer reports only New Subaru Sales on their Financial Statement.

 

 

Remarks:

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

 

Since in most cases Express technicians are employed on a salary, hourly, or guaranteed basis, their compensation will be charged to appropriate cost of sales account when they are paid; the amount that has been determined that Parts Department will absorb should be charged to Compensation – Express Service Account 36D (Parts).

 

Costing procedures should be reviewed periodically to assure that the service module matches payroll and that technicians are being costed correctly.

 

All work should be recorded on a Repair Order which should state the operations to be performed and should be signed by the customer.  Each customer repair order should indicate the VIN (vehicle identification number) of the unit being serviced.