490A – Gas, Oil, & Grease Subaru Mech.

Parts And Accessories Department

Sales Synopsis

Account 490A

Debits

Credits

 

  1. The actual selling price of all gas, oil, grease, and other similar fluids sold, such as brake fluid, antifreeze, windshield washer fluid, and solvents sold on Subaru Express repair orders per the debit description.

690A – Gas, Oil, & Grease Subaru Mech.

Parts And Accessories Department

Cost of Sales Synopsis

Account 690A

Debits

Credits

  1. The cost of all gas, oil, grease, and other similar fluids sold on repair orders, such as brake fluid, antifreeze, windshield washer fluid, and solvents, sold on Subaru Mechanical (main shop) repair orders.  Use this account for all makes of vehicles if the Retailer entity does not sell/report any other makes on the Subaru Financial Statement.  Otherwise, use Account 490B if vehicles are serviced in another brand's service area.

  2. The adjustment required when the physical inventory is less/more than the account (book) balance.

 

 

Remarks:

Express Gas, oil, and grease (lubricants) should be costed in accordance with the latest cost prices available, at the lower of cost or market value.

 

Liquid and bulk inventory is high risk.  Strict controls and monthly inventory checks and adjustments should standard procedure.  Shortages resulting from lack of controls or proper costing procedures can then be recognized and corrected on a timely basis.  Adequate internal controls, using written authorizations, should be maintained in dispensing these materials.

 

Costing methods and prices should be reviewed periodically for accuracy.  Unless costing of materials is accurate, sizeable inventory adjustments will be necessary at month-end.