023 Other Salaries and Wages

Expenses

Personnel

Synopsis

The compensation paid to Employees not classified in any other account is recorded in Account 023, Other Salaries and Wages.

Debits

Credits

Compensation (except absentee compensation) of other employees such as:

a. Service advisors/salespeople

b. Janitors

c. Porters and lot attendants

d. Parts helpers, counter people, and truck drivers

Other employees (other than supervisors) who:

a. deliver new vehicles and lease rental units

b. purchase and deliver used vehicles

c. repair buildings and equipment

Commissions to non-supervisory personnel on sales of service labor and of parts and accessories other than those sold with vehicles
Amount of compensation of a technician for any time that is devoted to non-productive work
Compensation of other Employees not otherwise provided for

Amount of compensation of such Employees for any time that is devoted to productive service work

Example 1

Record the monthly accrual of the service advisors commissions in the amount of $17,367.

Journal: Payroll

Entry:		Debit	Credit
Account 023-05	Other Salaries & Wages – Mechanical Department	$17,367
Account 321	Salaries, Wages & Commissions Payable		$17,367

Distribution of Expenses

	Departmental Distribution
023 Other Salaries & Wages	New Veh.	Used Veh.	Lease & Rental	Mechanical	Body Shop	Parts & Access.	Gen & Admin.
	01	02	03	05	06	07	09
Compensation of the mechanical service advisor/salesperson				Total Compensation
Compensation of the general porter or janitor	Time	Time	Time	Time	Time	Time	Time
Compensation of the used car lot attendant		Total Compensation
Compensation of the body shop porter					Total Compensation
Compensation of parts counter people, drivers, and helpers						Total Compensation
Compensation of the employee who delivers vehicles	Time	Time	Time
Commissions on labor and parts and accessories sales				Same as regular compensation	Same as regular compensation	Same as regular compensation
Compensation of a technician for doing maintenance work in the new and used vehicle departments	Time	Time
Compensation of the protection guard	Time	Time	Time	Time	Time	Time	Time
Compensation of the service courtesy car driver				Time	Time

Comments

The compensation of employees in this category should be charged to the department to which the employee is assigned. In the case where work is done for more than one department, the compensation should be pro-rated and proportionately charged to each respective department.

Note:

Job Descriptions should be prepared for each position. Periodic reviews should be conducted to discuss job performance and to set goals for the future.

Departmental Distribution