460N Non-GM EV Customer Service Labor

 

Sales

Fixed Operations

Sales Synopsis

Account 460N is established to record Labor sales paid by Customers for Non-GM Electric Vehicle maintenance performed by the Mechanical Department.  Account 460N is for all Vehicles that are non-GM products.

Debits

Credits

 

  1. The selling price of Mechanical Labor on non-GM EV products sold to customers

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

a.   Lube, oil & Filter (LOF)

b.   Tire rotation

c.   Routine inspections

 

 

660N Non-GM EV Customer Service Labor

 

Cost of Sales

Fixed Operations

Cost of Sales Synopsis

Account 660N is established to record the Cost of Sales for Non-GM EV Customer Service Labor, which is defined as compensation paid to technicians, for customer paid Service Mechanical Labor.

Debits

Credits

  1. Cost of mechanical labor related to non-GM EV product sales

 

 

 

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.