460D Mobile Service Labor – Cars & Light Duty Trucks

 

Sales

Fixed Operations

Sales Synopsis

Account 460D is established to record Labor sales paid by Customers for Mobile Service Labor performed by Mobile Service vehicles. 

Debits

Credits

 

  1. The selling price of Mechanical Labor sold to customers completed by Mobile Service Vehicles

  2. The selling price of single line item mechanical labor such as:

a.   Lube, oil & Filter (LOF)

b.   Tire rotation

c.   Routine inspections

 

 


660D Mobile Service Labor – Cars & Light Duty Trucks

 

Cost of Sales

Fixed Operations

Cost of Sales Synopsis

Account 660D is established to record the Cost of Sales for Mobile Service Labor, which is defined as compensation paid to technicians, for customer paid Mobile Service Mechanical Labor.

Debits

Credits

  1. Cost of mechanical labor related to Mobile Service Labor sales

 

 

Example 1

Record customer repair order for a lube, oil & filter in the amount of $60 performed by a Mobile Service vehicle.  The mobile service labor sale is $20.  The shop supplies are $10, the parts sale is $15, the gas, oil and grease sales are $15 and the sales tax is $4.  The labor cost is $7.  The shop supplies cost is $4, the parts cost is $10 and the gas, oil and grease cost is $11.

Journal: Service Sales - Cash

Entry:

 

Debit

Credit

Account 225

Cash Sales

$60

 

Account 660D

Cost of Sales – Mobile Service Labor – Cars & Light Duty Trucks

$7

 

Account 669

Cost of Sales – Shop Supplies

$4

 

Account 667D

Cost of Sales – Parts – Mobile Service – Repair Orders

$10

 

Account 691

Cost of Sales – Gas, Oil & Grease

$11

 

Account 244

Inventory – Gas, Oil & Grease

 

$11

Account 242

Inventory – Parts & Accessories

 

$10

Account 247A

Inventory – Work in Process – Mechanical

 

$7

Account 460D

Sales – Mobile Service Labor – Cars & Light Duty Trucks

 

$20

Account 469

Sales – Shop Supplies

 

$10

Account 467D

Sales – Parts – Mobile Service – Repair Orders

 

$15

Account 491

Sales – Gas, Oil & Grease

 

$15

Account 324

Sales Taxes Payable

 

$4

Comments

If the dealership has a Mobile Service Vehicle, then all Mechanical Labor performed by the Mobile Service Technicians should be recorded in these accounts.  

Note:

It is recommended that whenever practicable labor sales be costed on actual basis because material losses of productive time may be concealed by the inaccuracies inherent in percentage costing methods.  Such inaccuracies can result from failure to update costing percentages when changes occur in the compensation of technicians and in the structural of selling prices of labor, and other reasons.

 

Assure that Repair Order templates, and accounting are set up correctly by the DSP and maintained whenever technicians have payroll changes.  Technician incentives or bonuses should be considered cost of labor sales and debited to A/C 665 and 675 as applicable.  However, holiday, vacation, and sick pay should not be charged to Cost of Labor Sales, but as a non-productive wage expense in A/C 24 - Absentee Compensation.

 

Before closing each month, assure that the balance in A/C 247 - Work in Process, matches the total cost of labor on open (unclosed) R.O.'s, any difference should be adjusted to A/C 665 or 675 - Labor Adjustment.