473 – Subaru – Prepaid/Courtesy Maintenance Express

Service Department

Sales Synopsis

Account 473

673 – Subaru – Prepaid/Courtesy Maintenance Express

Service Department

Cost of Sales Synopsis

Account 673

Remarks:

The balances in these accounts represent productive mechanical labor on completed Express Prepaid/Courtesy Maintenance Service repair orders involving Subaru vehicles, (and other makes, if the Retailer reports exclusively New Subaru Sales on their Financial Statement).

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.

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.