400 - 444 Subaru Retail

New Vehicle Department

Sales Synopsis

Accounts 400 to 444

600 - 644 Subaru Retail

New Vehicle Department

Cost of Sales Synopsis

Accounts 600 through 644.

Remarks:

Each vehicle sale should be costed individually.  The cost of the vehicle should be determined from the vehicle inventory record.  The vehicle inventory record should reflect manufacturer/distributor invoice cost less vehicle holdback (refer to Holdback Receivables - Subaru (Account 218)) and less Market Assistance (if applicable - credit cost of the unit and debit Factory Receivable Account 227).

Internal “Packs” (whether hard or soft) should not affect the true gross profit recorded in the New Vehicle Department Income Statement.  Pack amounts are not to be directed to Other Income or recorded as accruals for other purposes.  Do not distort the gross profit of vehicles for internal commission purposes or other individual dealer driven adjustments.

Incentive earnings derived from the sale of eligible Subaru vehicles should be credited to the appropriate Cost of Sales account (for example, Legacy – Account 609).  This is the preferred treatment of incentives by SOA.  If absolutely necessary, Incentive Accounts are provided for those Retailers who need them.  See Account 6011 – Incentives Subaru (ICE vehicles), and Account 6011EV – Incentives Subaru (Electric vehicles).

Under and over allowances on used vehicle trades, if applicable, should be adjusted to the appropriate carline under and over allowances.

Cars transferred or exchanged between dealers are not to be considered as sales; instead, they should be debited and/or credited to the appropriate new car inventory account as transfers. These transactions should be recorded in the new vehicle purchase journal.

Demonstrators should be handled in compliance with respective state laws. They should not be recorded as new car sales until sold to the end user.

Care should be exercised when recording transfers of optional equipment and accessories between units to facilitate correct billing and costing.  All sales and cost data should be recorded on the vehicle inventory record at the time of sale.

Note:

SUBARU