October 30, 2016 admin

New Cars—Retail Lease

Sales and Cost of Sales

NEW CARS—RETAIL LEASE—ASIA PACIFIC ONLY ACCOUNT
SALES  3043-3325
COST OF SALES  4043-4325

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:

Fiesta—Retail Sales/Cost of Sales 3042, 4042
Fiesta—Retail Lease/COS 3043, 4043

*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 3043, etc.
             
  New car costed out at time of sale. VS
    Cost of Sales—New Cars—Retail Lease 4043, 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.