506 – Sublet Repairs – Body Shop

Body Shop Department

Sales Synopsis

Account 506

706 – Sublet Repairs – Body Shop

Body Shop Department

Cost of Sales Synopsis

Account 706

Remarks:

These accounts should be used only by retailers having their own body and paint operation.

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 from 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-reference 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 all sublet work is charged on a customer repair order and/or internally on an internal 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 body and paint work to ascertain the volume of this type of business and to determine the profitability of doing the work in the dealership, rather than subletting it.