October 30, 2016 admin

Fleet Trucks – NON FoMoCo

Sales and Cost of Sales

FLEET TRUCKS—NON FoMoCo ACCOUNT
SALES  3516
COST OF SALES  4516
ACCOUNT EXPLANATION
Sales: Selling price, less any discount or overallowance, of Non FoMoCo new trucks sold to fleet customers and dealership employees.

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

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
Jrnl. Dr. Cr.
New truck sold to fleet customer on open account NV
Accounts Receivable—Vehicles 1110
Sales—Fleet Trucks—Non FoMoCo 3516
New truck costed out at time of sale NV
Cost of Sales—Fleet Trucks—Non FoMoCo 4516
Inventory—New Trucks   1315
To record the lease NV
Investment in Sales-Type Leases 1630
Sales—Fleet Trucks—Non FoMoCo 3516
Deferred Income—Sales-Type Leases 1640
Cost of Sales—Fleet Trucks—Non FoMoCo 4516
Inventory—New Trucks   1315
COMMENTS
  • Sales 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 fleet sales. New vehicle sales to a separate leasing organization, independent or dealer-owned, should be recorded in this account.
  • Dealers who need to maintain records of gross sales and/or discounts and overallowances on vehicle sales may use one of two methods:
    1. Record gross sales and/or discounts and overallowances as memo items in the New Vehicle Sales Journal without regard to vehicle line, or:
    2. Establish Account, Cost of Sales, Fleet Trucks—Non FoMoCo—Discounts & Overallowances, to which discounts and overallowances should be debited. Gross sales amounts should be credited to Account 3516, Sales—Fleet Trucks—Non FoMoCo.
  • Information regarding sales to dealers with an associate sales agreement is contained in instructions issued by Ford Motor Company.