October 30, 2016 admin

New Cars—Retail Lease

Sales and Cost of Sales

NEW CARS—RETAIL LEASE ACCOUNT
SALES  3001-3341
COST OF SALES  4001-4341
ACCOUNT EXPLANATION

Sales: Value of lease contracts, less any discounts or overallowances, of new cars leased to retail customers, usually under the Red Carpet Lease Program.

Cost of Sales: Inventory value of units leased. Note that inventory value is cost less vehicle holdback.

*NOTE: Separate numbers have been assigned to retail sales and retail leases. The lease numbers are paired with the retail sales numbers by changing the last digit of the sales number to 1:

Mustang—Retail Sales/Cost of Sales 3040, 4040
Mustang—Retail Lease/COS 3041, 4041
*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
Jrnl. Dr. Cr.
Sale of vehicle and assignment of Red Carpet Lease Plan to F.M.C.C. VS
Accounts Receivable—F.M.C.C. Lease Plan 1135
Accounts Receivable—F.M.C.C. Deferred Gross 1836
New Cars—Retail Lease 3001, etc.
New car costed out at time of sale. VS
Cost of Sales—New Cars—Retail 4001, etc.
Inventory—New Cars 1300
Inventory—New Car—Other Franchise 1305
COMMENTS
  • Retail lease data should be entered on the subsidiary vehicle inventory record.
  • Cars placed in leasing or rental service within the dealership operation should be recorded as inventory transfers at dealer cost, not as retail leases. New vehicle sales to a separate leasing organization, independent or dealer-owned, should be recorded in Account 3360 (for all Ford Motor Company vehicles) or Account 3370, Non FoMoCo Fleet Sales.