Commissions & Incentives—Other—Service – Ford Online Accounting Manual

Expenses

COMMISSIONS & INCENTIVES—OTHER—SERVICE	EXPENSE ACCOUNT
	7720/7907/7920

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Commissions and incentives paid or accrued to service except department managers, salespeople or other employees on the sale of service labor or other items sold by the service department. Includes incentives based on the performance of the service department.

TRANSACTIONS

			Jrnl.	Dr.	Cr.

Commissions earned by service advisors on service sales			PR
	Commissions & Incentives—Service			7720
	Commissions & Incentives—Service—Quick Lane—Other			7907
	Commissions & Incentives—Service—Quick Lane—Technicians			7920
		Accrued Payroll			2410

Incentive pay earned by service advisors on the customer satisfaction rating of the service department			PR
	Commissions & Incentives—Service			7720
		Accrued Payroll			2410

COMMENTS

Guaranteed minimum commissions paid but not earned through service sales should be charged to Account 7710, Salaries—Other—Service.
Bonuses based on total dealership profit should be charged to Account 9550, Employee Bonuses.
Commissions, incentives, prizes, etc., paid to dealership employees are subject to withholding and should be recorded through the Payroll Journal. Tax counsel should be consulted as necessary.
See also Account 7820, Commissions and Incentives—Body Shop.