909 GM Reimbursements

Additions/Deductions

Addition to Income

Synopsis

Account 909 is established to record payments from General Motors for reimbursements earned under the various programs including the Standards For Excellence (SFE) / Pinnacle and Essential Brand Element (EBE) programs. Volume incentives earned that do not apply to a single model line should also be recorded in this account.

Debits	Credits
	The amount of reimbursement from GM for earnings under the Standards For Excellence (SFE) / Pinnacle programs The amount of reimbursement due from GM for vehicles purchased under the Essential Brand Element (EBE) program Volume incentives that do not apply to a single model line

Example 1

Record the estimated reimbursement for the amount of $25,000 due under the Standards For Excellence (SFE) / Pinnacle programs.

Journal: General Journal

Entry:		Debit	Credit
Account 261	Factory Receivables	$25,000
Account 909	GM Reimbursements		$25,000

Example 2

Record amount due for vehicles purchased under the Essential Brand Element (EBE) program. Example based on month end factory summary of $8,584.

Journal: Purchase Journal

Entry:		Debit	Credit
Account 261	Factory Receivables	$8,584
Account 909	GM Reimbursements		$8,584

Comments

Volume incentives earned that apply to a single model should be recorded as a reduction to the cost of sales for that model.