Franchise Data - Flipbook - Page 115
STEP 8
The selection of Estimated or Fixed costs has important accounts implications. When a vehicle
is sold, in the month it is sold, all the income and all the costs are automatically taken to the
Profit & Loss Account. Some of the costs relating to the vehicle may not have been processed
by the end of the month and so the system accrues for the outstanding costs until the actual
cost is processed.
Fixed Costs
If a cost is set to Fixed then when a vehicle record is set to the Accounts status of Invoiced and
all the costs are pulled through to the Profit & Loss Account the system will take the 8estimated9
cost through to the cost of sales accounts, irrespective of the 8actual9 cost for the goods being
processed.
The system will treat the 8estimated9 cost as the 8actual9 cost irrespective of the cost eventually
paid by the company.
Thus, if a new cost is created for (say) fuel and the estimated cost is set to £20.00, and then
this is attached to all vehicle stock records, when the stock record status is changed to 8I –
Invoiced9 a cost of £20.00 will go to the Profit and Loss account. £20.00 will be charged to the
Profit and Loss irrespective of the actual amount of fuel that is put into the car.
When the bill arrives for all the fuel for the vehicles for the month, the cost is not processed
onto each vehicle but so from the vehicle record it will not be possible to see what the actual
cost of the fuel was for the vehicle or indeed if the actual cost for the fuel has been received.
Estimated Costs
When a cost has been set to Estimated the actual cost is processed either through Point of
Sale (when they invoice the cost to New or Used vehicle) or through the Purchase Ledger.
Sometimes the actual cost can be processed through the Sales Ledger but this is usually only
for bonuses from the manufacturer.
Until the 8actual9 or 8real9 cost is processed (through the Purchase Ledger or Point of Sale
modules) the system will use the estimated cost as the actual cost to calculate the profit on the
vehicle.
However, when the 8actual9 cost is processed, if the 8actual9 cost of the option is greater than
the 8estimated9 cost of the option then the system will adjust the profit on the vehicle
automatically to reflect the higher 8actua9l cost. This adjustment is done automatically by the
system as soon as the 8actual9 cost is processed.
If the 8actual9 cost is less than the estimated cost though, the system will not make an
adjustment to the profit until the 8estimated9 cost is changed to the 8actual9 cost on the vehicle
record. The Estimated v Actual reports (see below for more details) will need to be run to
identify these differences when they occur.
Estimated Versus Actual Costs Report
A report is run as part of the Timed Operations to compare the 8estimated9 costs with the
8actual9 costs for each cost line on each vehicle record. The report can be run manually from
the VSB module / Reports & enquiries / Accounts reports / Profit & debtors reports / Estimated
vs actual costs. It is important that the estimated costs are adjusted to the real costs so that
the vehicle record can go to closed status.
STEP 9
The Notes tab can be used to record any specific information regarding the option.
Build Specifications – Creating a Dealer Option
03.005.06 L1 – gpl 01/09/08
Page 115 of 176
