481A – Tires - Subaru

Parts And Accessories Department

Sales Synopsis

Account 481A

Debits

Credits

 

  1. The sales price of all tires and tubes sold to on Customer, Warranty or Internal repair orders, or over the counter.

681A – Tires - Subaru

Parts And Accessories Department

Cost of Sales Synopsis

Account 681A

Debits

Credits

  1. The inventory value of tires and tubes sold on Customer, Warranty or Internal repair orders, or over the counter regardless of brand for Subaru-only shops.  If the Retailer sells/reports other New Makes on their Financial Statement, they should use Account 481B – Tires – Other for Tires sold in their Other Makes shop.

  2. The adjustment for any differences (shortages/overages) between the monthly book and physical inventory values.

 

Remarks:

Tires purchased through manufacturer parts channels and having a manufacturer’s part number should be inventoried and sold separately from regular parts and reported under this account.

 

Tires and tubes should be costed individually at the time of sale.

 

The sale and cost of tires transferred between vehicles should not be included in this account. These transactions should be treated as inventory transfers.

 

The sale and cost of special tires installed on a new vehicle at the time of sale should not be included in this account. These transactions should be treated as inventory transfers and accounted for as part of the new vehicle cost of sale.

 

Perpetual inventory records should be maintained weekly to provide maximum inventory control and to aid in maintaining a balanced inventory that will produce maximum profits.