Vacation & Time-Off Pay—Technicians—Service – Ford Online Accounting Manual

Expenses

VACATION & TIME-OFF PAY—TECHNICIANS—SERVICE	EXPENSE ACCOUNT
	7790/7990

Amounts paid to or accrued for technicians of the service department for earned vacations, granted holidays, and authorized paid absence from work.

			Jrnl.	Dr.	Cr.

Monthly accrual of 1/12 of annual estimated vacation and holiday pay for technicians			SE
	Vacation & Time-Off Pay—Technicians—Service			7790
	Vacation & Time-Off Pay—Technicians—Service—Quick Lane			7990
		Accrued Vacation Pay			2412

Inclusion of pay for earned vacation or granted holiday in technicians’ pay			PR
	Accrued Vacation Pay			2412
		Accrued Payroll			2410

This account should include vacation and time-off pay for service department technicians only. Vacation and time-off pay for salaries employees of the service department should be charged to their respective salary and wage accounts.
Payments to commission technicians for attending training courses should be charged to Account 7740, Training—Service.
Accurate monthly accruals of these costs will minimize fluctuations in operating expenses, particularly in peak vacation months.
Since special handling of accruals of vacation and time-off pay may be required at year end for income tax purposes, dealers should consult tax counsel as necessary.
See also Account 7890, Vacation & Time-Off Pay—Technicians—Body Shop.