Return to Input Sheet Contents
The parts department should be reported such that the Reporting Franchise is separated out from Other Franchises. As detailed here, service department information is displayed in three columns:
- Reporting Franchise
- Other Franchises
- Total (the sum of Reporting Franchise and Other Franchises)
Parts sales and gross profit information should be categorised into the below types of sale, where:
- Sales represents the selling price exclusive of sales tax of parts sold
- Gross profit represents sales less the inventory value of parts sold
Types of sale
Parts sold to motor trade customers such as other dealers, repairers, panel shops/businesses external of the dealership, garages etc.
- include parts transfers between stores here.
All parts that are sold over the counter to the public (retail sale).
All parts sold on repair orders (retail, fleet or government related) through the service department
- NB: in earlier versions of the input sheet, this was referred to as ‘Workshop’ sales .
All parts sold to an internal panel shop or smash repairs business.
Warranty and policy claims
Parts used in performing work under factory or extended warranty for which a corresponding claim will be raised.
The selling of parts to other departments within the dealership – this covers parts for pre-delivery, reconditioning and maintenance of demonstrators and drive cars.
Other merchandise (MSDE)
All parts sales not included above, and should generally include things such as accessories, tyres, lubricants, non-genuine parts i.e. batteries, promotional merchandise etc.
Parts inventory adjustment
This area provides for adjustments to parts inventory to reflect changes in value caused by obsolescence, theft, write-down, changes in market value or other variations between book and physical inventory
- Gross profit transfer from parts to service should also be included here if the parts gross profit transfer line is not available for your Reporting Franchise input sheet. See here for more information on how the transfer is treated for reporting purposes.
Automatic calculation totalling the sales fields from the above.
Total gross profit
Automatic calculation totalling the gross profit (add or less gross contribution from wholesale incentives or inventory adjustment).
Parts incentive payment
Any parts incentive paid by the brand to the dealership exclusive of those related to the wholesale incentive line.
Expenses of the parts department should be reported such that the Reporting Franchise is separated from Other Franchises. This can be done in one of two ways depending on the dealership’s account structure/preference:
- Direct mapping/input: Reporting Franchise expense accounts should be entered into the Audi column while all other franchise expense accounts should be entered into the Other Franchises column
- Percentage allocation: a percentage should be entered into the expense allocation boxes beside each of the departmental expense lines to allocate a portion of total parts department expenses to the Reporting Franchise
Each expense line is available to collect the following information:
Salaries and/or bonuses paid or accrued to all staff employed in the parts department.
Sick and holiday pay
Sick and annual leave entitlements paid to all parts department staff.
Training expense for parts department staff
- subsidies received should be netted against this expense.
Advertising and promotion
All advertising and sales promotion expended in the parts department including sponsorship, media coverage, displays, trade shows, signage etc.
- any parts co-op should be netted against this expense.
Associated costs relating to shortfalls or non-receipt of warranty/policy claims
Tools and supplies
Supplies specific to the parts department and the nature of its operations (not office supplies) e.g. boxes, tape, razor blades, ladders, trolleys etc.
Equipment and vehicle maintenance
Relates to the expense of repairing and maintaining equipment used in the parts department e.g. computer and microfiche equipment, forklifts, delivery and other parts vehicles
- all other parts department expenses that do not fit into the above/below categories should be included here.
Expenses incurred in delivering goods to customers.
Automatic calculation totalling the expenses recorded in the above categories.
Total selling gross
Equals to total gross profit and any incentive payments received less total parts expenses – gives an indication of true departmental profit before the dealership’s fixed overhead expenses are taken into account.
Gross profit transfer
Some dealerships transfer a portion of parts gross from parts workshop sales to the service department. Whilst we accept that this is an internal decision of the dealership, for ProfitFocus reporting this gross profit should be shown in the parts department.
As such, both transfer in and transfer out accounts should be mapped to the same field on an input sheet. This is usually under the gross profit transfer field, however if unavailable on your Reporting Franchise's input sheet, these accounts should be mapped under Parts Inventory Adjustment.
Parts inventory information should be recorded by the 4 ageing category groups (0-30 days, 31-60 days, 61-90 days, 91-355 days) or the 2 ageing category groups (<=365 days, >365 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 parts on hand
The dollar value of all parts stock on hand.