426 – F&I New Other Makes

New Other Department

Sales Synopsis

Account 426

Debits

Credits

 

 

  1. Net Finance, Insurance, Service Contract, and Aftermarket income derived from the sale new other-make vehicles.

626 – F&I New Other Makes

New Other Department

Cost of Sales Synopsis

Account 626

Debits

Credits

  1. The Adjustments other than charge backs to reduce finance and insurance income.  Charge Back’s & Repo Losses on New Other Make vehicles should be included in this account.

 

 

 

Remarks:

Finance, Insurance, Service Contract and Aftermarket Sales and Cost of Sales should be determined at the time the vehicle sale is consummated.  Income should then be recorded at the same time the vehicle sale is entered into accounting.

Monthly statements from financial institutions, service contract companies and insurance providers should be reconciled promptly, and any discrepancies researched and resolved.  Any under or over statement of income should be charged back to Account 626.

Charge backs due to early contract termination or repossession for other than Subaru vehicles should be netted to this account.

Note: