Internal Repair Order

Internal Controls

Administrative Controls

At the time that a vehicle is accepted in trade, it should be determined if the vehicle will be sold wholesale or retail.  If it is determined the vehicle will be retailed and it requires reconditioning, an estimate should be made regarding the cost, approved by the Used Vehicle Manager and an Internal Repair Order should be prepared by the service department.  The Internal Repair Order should specify the nature of the work to be completed and the maximum amount of money to be spent.  A copy of the Internal Repair Order should be kept in the Used Vehicle Department for periodic follow-up purposes.

If reconditioning work is sublet, it must be authorized by a purchase order, which should be cross-referenced to the internal repair order.

After the reconditioning is complete, the vehicle should be inspected, the actual reconditioning costs updated on the inventory records, and these costs compared to the estimate on the original appraisal form.