Used Vehicle Sales & Repairs require the following processed activity to keep your General Ledger accounts up-to-date and accurate.
The first step is setting up the accounts for the Used Vehicle Sales & Repairs. Please follow the steps below to setup your Used Vehicle Sales & Repairs.
By setting up a Profit Center for the Used Vehicle Sales & Repairs all monies will be reported separately from your regular vehicle repair & service sales, costs and profits.
There are a few setup options and others setup actions that you will need to provide information for, depending on how you want to process the accounting for your Used Vehicle Repairs. These areas will include, but are not limited to: Taxes and Other Charges, Labor Rates and Parts Profit. You may want or need to discuss these settings with your accountant.
1) From the Enterprise/Setup Manager, create a New Profit Center for the Used Vehicle Sales & Repairs.
a) Name this Profit Center, Used Vehicle Sales & Repairs.
i) At Profit Center Type select, Vehicle Service.
2) Under the Used Vehicle Sales & Repairs – Profit Center, create 2 New Master Service Categories.
a) Used Vehicle Sales
b) Used Vehicle Repair
3) Under the Used Vehicle Sales – Master Service Category, create New Service Package(s).
a) Used Vehicle Sale
i) Insert a Material Item.
§ Edit Description to read, Used Vehicle
§ The Description will be changed when a Used Vehicle is drawn from inventory and sold.
b) Used Vehicle Trade-In (if Trade-In vehicles are accepted)
i) Insert a Material Item.
§ Edit Description to read, Used Vehicle Trade-In.
§ The Description will be changed when a Trade-In is taken in on a Used Vehicle Sale.
4) Under the Used Vehicle Repair – Master Service Category, create New Service Packages (SP), Pinpoint Inspections (PPI) and Common Complaints (CC) as described below and as required for your Used Vehicle Repair process.
a) (SP) “Used Vehicle Pre-Delivery Inspection,” (if an inspection will be completed on Used Vehicles when purchased.)
i) Insert a Labor Item.
§ Enter the Labor details, as desired.
b) (SP) “Used Vehicle Repair”
i) Insert a Labor line.
§ Enter the Labor details, as desired.
ii) Insert a Material line.
§ Leave this at its default entries. Edits will be made as materials are added for the Used Vehicle Repair.
iii) Insert a 2nd Material line & Description “Used Vehicle being repaired / serviced.”
§ You will replace this Material Item with the actual Used Vehicle being repaired / serviced at the time of repair/service, when drawn from inventory.
c) (PPI) “Used Vehicle Pre-Delivery Inspection.”
i) List all vehicle components that you would inspect on a Used Vehicle Pre-Delivery Inspection, (if an inspection form will be used.)
d) (CC) “Used Vehicle Pre-Delivery Inspection,” (if an inspection will be completed.)
e) (CC) “Used Vehicle known issues and/or items to be inspected.”
i) You will enter/edit the issues and items to be inspected on the Used Vehicle from the New Work Wizard and/or Work Order.
5) From the Location Manager, Select the Used Vehicle Sales & Repairs – Profit Center.
a) Copy the Service Packages, Pinpoint Inspections & Common Complaints to your Location Manager from Setup #4.
b) Under each Service Package for the Used Vehicle Repair – Profit Center, set up the following, as they apply to the Used Vehicle Repair / Service for your business.
i) Charges = Other Charges & Taxes
ii) Format Tab = Display Format
iii) Labor Rate and Parts Buy levels can be set at the Service Package or at the Contact for the Used Vehicle Repair / Service. Details for this setup will be discussed in Setup #8 (below.)
6) From the Tools > Location > Sell Price Defaults, set the Price Matrix (defaults) for Received Items for the Used Vehicle Repair – Service Category.
a) If no profit will be reported on these part sales, add one table and set the matrix to 0%.
b) If a profit will be realized on the part sales, add the tables as desired.
7) From the Tools > Enterprise/Setup > Contact Categories, create a New Contact Category for the Used Vehicle Sales & Repairs.
8) From the Contact Manager, add a New Business Contact for the Used Vehicle Sales & Repairs. Usually the Business Name with Used Vehicle Sales & Repairs (i.e. North Star Automotive Used Vehicle Sales & Repairs.)
a) Set the Contact Category to Used Vehicle Sales & Repairs
b) Set the Labor Buy Level for Used Vehicle Repairs.
i) Level-4 can be used for Used Vehicle Repairs or the Labor Rate can be set to any desired pricing for Labor charges.
c) Set the Materials Buy Level for Used Vehicle Repairs.
i) Level-4 can be used for Used Vehicle Repairs for parts drawn from Inventory or edits will be required at the time of sale for these material items drawn from inventory.
d) Set a Receivable Account Limit as the Used Vehicle Repair invoices will be posted as On Account (House Charge) to this contact. The more activity, the higher the Receivable Account Limit.
e) Set the Exemptions for Other Charges. (i.e. Taxes, Shop Supplies, Disposal, Fees, Etc)
9) From the Contact Manager, create Contacts for the Used Vehicle Supplier(s).
a) All Used Vehicle Suppliers will be set to Parts Supplier.
10) From the Contact Manager, create a Contact for the “Used Vehicle Trade-In.”
a) Set the Contact Categories to Parts Suppliers and Used Vehicle Repairs & Service.