Parts—Metal—Body Shop

• ACCOUNT EXPLANATION
• TRANSACTIONS
• COMMENTS

Sales: Selling price of parts, including sheet metal, installed in dealer’s body shop and sold to customers on completed body shop department repair orders, including fleet owners, insurance companies and vehicles damaged in transit. (Does not include paint.)

Cost of Sales: Inventory value of above parts sold.

NOTE: Dealers with competitive franchise (Non FoMoCo) separate parts and report FoMoco (franchise) parts in Account 5500/6500 and Non FoMoCo (other franchises) in Account 5501/6501.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers

• It is recommended that parts sales be costed on an item-by-item basis at the time of sale, since this method produces the most accurate cost of sales data and provides the best control of inventory. If parts sales are costed on the basis of estimated percentages of retail selling prices in various inventory categories at month end, percentages used should be verified by test checks of actual item costs over a 30-60 day period every six months. Office Management contains additional information on costing methods.
• Parts damaged in transit may be recorded in Parts and Service Sales Journal columns 34 through 37.