The Vehicle Stock Book for Accountants - Flipbook - Page 23
Estimated Costs
Estimated costs in the vehicles module can be used in a number of ways:
1. To serve as a guide to the expected cost.
2. Dependent on system parameters they can serve as a maximum for the invoice value on internal work.
3. Depending on set up the costs can be posted to accounts as an accrual awaiting the actual cost to be
received.
When a line is added to a vehicle the following postings will be made:
Dr
New/Used Vehicle Other Stock
Cr
Costs in Progress
If the vehicle is sold before the actual cost is received, the system will use the estimated figure and post this to
Cost of Sale.
Dr
Cost of Sale
Cr
New/Used Vehicle Other Stock
The Costs in Progress is the accrual awaiting the actual cost.
When the actual cost is received, the system will clear the accrual (if the same or higher value than the estimate).
The system is set to use the higher of estimate or actual.
Note:
If the actual cost is lower than the estimate, there are two ways of dealing with the difference:
1. The system can take care of the adjustment when the vehicle reaches 8X9 status by clearing the Costs in
Progress balance and adjusting Cost of Sale.
2. The adjustment can be made as soon as required, usually prompted by reviewing the Estimated vs Actual
Costs report, by amending the estimated figure to match the actual cost. This will make the necessary accounting
entries behind the scenes.
Dr
Costs in Progress
Cr
Cost of Sale
The following reports are available to assist in controlling costs:
•
POS lines not assigned
yet been created).
•
Unreceived costs
zero.
•
Estimated vs Actual Costs
are different.
Vehicle Costs
(VSB lines, source W, have been pushed to POS but the WIP has not
This will report any lines where there is an estimated cost but the actual is at
This report is purely concerned with lines where the actual and estimate
01.900.22 – pwise – 01/06/06
Page 21 of 160
