October 30, 2016 admin

Parts—Body Shop—Paint

Sales and Cost of Sales

PARTS—BODY SHOP—PAINT ACCOUNT
SALES  5510/5511
COST OF SALES  6510/6511

ACCOUNT EXPLANATION

Sales: Selling price of paint purchased for a specific job, applied 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.

Cost of Sales: Inventory value of above parts sold.

NOTE: Dealers with competitive franchises (Non FoMoCo) separate parts and report FoMoCo (franchise) parts in Account 5510/6510 adn Non FoMoCo (other franchises) in Account 5511/6511.

*Refer to Chart of Accounts for current applicable Sales/Cost of Sales account numbers
TRANSACTIONS
  Jrnl. Dr. Cr.
  Paint sold on body shop repair order for cash PS
    Cash Sales—Clearing 1010
      Sales—Parts—Body Shop Paint Franchise/Other 5510, 5511
             
  Paint costed out at time of sale PS
    Cost of Sales—Parts—Body Shop—Paint Franchise/Other 6510, 6511
      Inventory—Parts—Body Shop Materials 1442
             
  Sale and costing of paint sold to fleet owner on shop PS
    Accounts Receivable—Body Shop 1122
      Sales—Parts—Body Shop—Paint Franchise/Other 5510, 5511
    Cost of Sales—Parts—Body Shop—Paint Franchise/Other 6510, 6511
      Inventory—Parts—Body Shop Materials 1442
           
  Paint sold on repair of vehicles damaged in transit PS  
    Ford Receivable—Other   1200
      Sales—Parts—Body Shop—Paint Franchise/Other     5510, 5511
           
  Paint costed out at time of repair of vehicles damaged in transit PS  
    Cost of Sales—Parts—Body Shop—Paint Franchise/Other   6510, 6511
      Inventory—Parts—Body Shop Materials     1442
COMMENTS
  • It is recommended that paint 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. If paint sales are costed on the basis of estimated percentages of job prices, percentages used should be verified by test checks of actual item costs over a 30-60 day period.