New vehicle department information is split across two worksheet tabs of the input sheet:
- B-New: all income generated through new vehicle sales (excluding holdback) where the page is divided into the reporting franchise and other franchises.
- B-New Exp: holdback income, selling expenses related to the new vehicle department and new inventory information
The B-New tab of the input sheet divides the new vehicle sales operations into the reporting franchise (top half) and other vehicle franchises (bottom half) – see here for more information.
Sale of new vehicles
All vehicles sales should be allocated to retail, fleet or government/rental lines of the input sheet accordingly. Some points to note about classifying sales into these categories are in the below table:
In the sale of new vehicles section, each line requires the three following inputs:
The net selling price (including dealer charges and all fitted options/accessories) of any new vehicle, less any discounts offered by the dealership
- overallowance on a trade-in is recognised as a discount and thus should be treated as a reduction of net sales
The net sale price less cost of goods sold (COGS)
- cost of goods sold is the inventory value of the vehicle sold plus the original cost of any dealer fitted accessories
- pre-delivery should not be included here, but expensed separately
- vehicle loads, which are any ‘notional’ or ‘supplementary’ increases to the cost of a used vehicle should be reversed at the model line level – see Adjustment 1 under H-Staff&StdJnls for an automatic adjustment feature of the input sheet that can include the impact of loads
The number of units that correspond to the reported sales.
Other new vehicle income
Below the sales, gross profit and unit lines for vehicle sales, there are two lines in both the Reporting Franchise and Other sections of the page that are available to collect other sources of income related to the new vehicle department.
Relates to commissions or profits received, resulting from the sale of aftermarket products such as window tints, rust protection etc. Extended warranty should also be included here. Aftermarket income should be separated out from gross for reporting purposes.
All incentive payments and bonuses that specifically relate to target achievement.
- Contact the ProfitFocus team if you have questions regarding where bonuses are to be reported.