Body Shop Labor—Warranty & Policy Claims

• ACCOUNT EXPLANATION
• TRANSACTIONS
• COMMENTS

Sales: Selling price at authorized reimbursement rates of body shop labor performed in the dealership under the warranty and policy program.

Cost of Sales: Cost of above labor sold.

NOTE: Dealers with competitive franchises (Non FoMoCo) separate body labor and report FoMoCo (franchise) labor in Account 5830/6830 and Non FoMoCo (other franchises) in Account 5831/6831.

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

• The gross earnings of body shop technicians and the productive wages of other shop employees should be charged initially to Account 1440, Inventory—Labor in Process, through the Payroll Journal.
• See Account 5700/5701, 6700/6701, Sales/Cost of Sales—Labor Franchise/Other—Repair Shop, for methods of calculating cost of sales of warranty labor.
• For explanation of warranty and policy adjustments, forms, procedures, and reimbursement rates, consult the current Warranty & Policy Manual.