Holdback, floor plan assistance (FPA), SFP, FES etc. payments from factories/distributors should be included in this section. You are required to separate reporting franchise payments from those paid by other franchises.
Selling expenses are those variable and semi-fixed expenses involved in making new vehicle sales including the promotion, display and advertising of new vehicles, delivery and department maintenance costs.
Commissions and incentives (sales people)
Commissions, prizes, gifts and bonuses paid to new vehicle sales consultants.
Commissions and incentives (sales managers)
Commissions, prizes, gifts and bonuses paid to new vehicle sales managers.
Commissions and incentives (aftermarket people)
Commissions, prizes, gifts and bonuses paid to aftermarket staff dedicated to the new department.
Expense of preparing new vehicles for delivery including car cleaning/detailing wages, service pre-delivery charges, petrol and freight.
Expenses related to providing free service offered with the purchase of new cars.
Maintenance and policy work
Any costs incurred relating to stock and yard maintenance as well as goodwill/policy
- also include any other variable costs that cannot be categorized into the above categories in this line.
Total variable expenses
The input sheet will automatically add all the above variable expense totals.
Semi fixed expenses
Salaries (sales people)
Salaries paid to or accrued for new vehicle sales people i.e. retainers
Salaries (sales managers)
Salaries paid to or accrued for new vehicle sales managers
Salaries (aftermarket people)
Salaries paid to or accrued for aftermarket staff dedicated to the new department
Salaries (and commissions) paid to or accrued for other new vehicle staff including cleaners/detailers, stock controllers, specific clerical staff etc.
Sick and holiday pay
Sick and annual leave entitlements paid to all new vehicle staff
Training expense for new vehicle department staff
Advertising and sales promotions represent a direct expense of the new vehicle department and includes third party media coverage, direct mail campaigns, promotional banners, sponsorships, showroom displays etc.
- subsidies received should be netted against this expense
Company car expenses which include the cost of maintaining demonstrator vehicles in a presentable and saleable order such as cleaning, minor repairs and petrol
- vehicle write-down or write-backs should also be allocated here
- also include any other semi-fixed costs that cannot be categorized into the above categories in this line.
Gross amount of interest expense and charges paid or accrued in respect of bailment’s outstanding on new vehicles.
Total semi fixed expenses
The input sheet will automatically add all the above semi fixed expense totals.
New vehicle inventory information should be recorded by the 5 ageing category groups (0-30 days, 31-60 days, 61-90 days, 90-120 days, 120+ days). If your trial balance presents inventory as a single account, this will often be mapped to the total stock held cell, however we request you to manually split these figures by age.
Value of new vehicles on hand
The dollar value of all new vehicle stock on hand at the end of the period, this includes demonstrator vehicles included in the new vehicle inventory account
- also include the dollar value of new vehicle accessories that have already been fitted to a new vehicle.
Units on hand
The number of vehicle units that relate to the above dollar figure (do not include the number of vehicle accessories here).