Gas, Oil & Grease – Ford Online Accounting Manual

Sales and Cost of Sales

Sales: Selling price of gas, oil, and grease sold by the service department to customers and other departments of the dealership.

Cost of Sales: Cost of gas, oil, and grease sold.

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

			Jrnl.	Dr.	Cr.

Oil change sold to customer on repair order for cash			PS
	Cash Sales—Clearing			1010
		Sales—Gas, Oil, & Grease			5780
	Cost of Sales—Gas, Oil, & Grease			6780
		Inventory—Gas, Oil, & Grease			1443

Gas sold to new car department for demonstrators			I
	Demonstrator Expense—New			7150
		Sales—Gas. Oil, & Grease (at internal rate)			5780
	Cost of Sales—Gas, Oil, & Grease			6780
		Inventory—Gas, Oil, and Grease			1443

Internal sales of gas, oil, and grease should be recorded at an internal rate established by the dealer, but not in excess of the retail selling price.
Where practicable, gas, oil and grease should be costed on an actual cost basis. Where actual item costs cannot be used, estimated costs, expressed as a percentage of sales, may be used.
Tax counsel should be consulted regarding tax considerations in the sale and use of gas, oil, and grease.