Parts Department – Sales Expense

Each Parts Department sales expense is to be divided by Total Parts Gross on line 44 and recorded in the Month and YTD columns. For example, Salaries: Other of $11,667 divided by Total Parts Gross of $33,050 = 35.3%. Carry % to one place beyond decimal

Salary & Commission/Incentive earned by Parts department managers including vacation and holiday pay

Salaries & wages earned by other Parts department employees (excluding technicians) including vacation and holiday pay

Commissions & incentives earned by Parts department employees, other than Managers

Advertising and sales promotion costs directly related to the sale of parts

Rebates or refunds to the dealer from dealer advertising associations - parts department section.

Training costs of Parts department personnel

Price adjustments and replacement of defective parts (other than under W&P program)

Expense related to service loaner used in conjunction with the Parts Department

Cost of Parts department small tools and supplies

Cost of Freight on parts and other merchandise

Maintenance and repair of Parts department vehicles, machinery and equipment

Cost of inventory control & physical inventory and data processing services purchased from vendors for Parts Department

Payments or accruals for vacation and holidays, time off pay for parts Department Technicians only

Total of lines 46 thru 58

Line 44 minus line 59

Amount based on individual dealership practices (normally 50%) applied to the sum of lines 8, 10, 11 (Parts) and lines 26 plus 28 of (Body Shop) Parts Department

Line 60 minus the amount computed for line 61