October 30, 2016 admin

Commissions & Incentives—F & I—Used

Expenses

COMMISSIONS & INCENTIVES—F & I—USED EXPENSE ACCOUNT
7460

ACCOUNT EXPLANATION
Commissions and incentives paid or accrued to used vehicle F & I managers or other F & I employees on the sale of finance contracts, insurance, service contracts, etc. Includes incentives based on the performance of the F & I department.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Commissions earned by F & I managers on F & I sales relating to used vehicles PR
    Commissions & Incentives—F & I—Used 7460
      Accrued Payroll 2410
             
  Prizes earned by F & I managers on F & I sales relating to used vehicles PR
    Commissions & Incentives—F & I—Used 7460
      Accrued Payroll 2410
COMMENTS
  • 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.
  • Bonuses of F & I managers based on total dealership profit should be charged to Account 9550, Employee Bonuses.
  • If the F & I department serves both the new and used vehicle departments, this expense should be divided equitably between this account and Account 7410, Commissions & Incentives—F & I—New.