This topic explains the procedures involved in converting a new consigned (or adopted) vehicle to a demonstrator. A similar procedure will apply to courtesy and loan cars.
Once a vehicle has been registered as a demonstrator, it can no longer be regarded as new vehicle. A used vehicle record must be created for the vehicle (in addition to the new vehicle record) to record depreciation and the eventual sale of that vehicle out of the dealership.
In summary, the procedure involves raising a self billing invoice at cost price and creating a part exchange vehicle (the demonstrator) at the total cost price as per the self billing invoice.
The raising of an invoice to convert a new vehicle to a used (demonstrator vehicle) differs from raising an ordinary main invoice by the following:
Sales brief: Both the sales ledger account for the invoice address and the and the sales ledger account for the customer address will be a special account called "Demo vehicles account"
The new vehicle record will have to be attached to a customer record before the invoice can be printed. There will be a customer record with a short name of "HOUSE" in the CRM system and this should be used for all demonstrator, loan and courtesy car registrations.
Sales Executive: Used the Sales Executive code of HO for "HOUSE".
The tax point date of the "sale" must be the date the demonstrator vehicle is registered.
Sale Type: Use a sale type of D for demonstrator.
Vehicle specification: All values must be at cost to the Car Sales Department. This includes all accessories fitted to the demonstrator.
Ensure that the P.D.I. cost is on the Vehicle specification. Call up a specification line relating to an accessory and change the description to P.D.I.
Do not include the value of the Road Fund Licence on the Vehicle specification.
Having completed the Vehicle specification, right click and select and highlight the lines for invoicing, then the total of the invoice should represent the total cost of the demonstrator to the dealership plus V.A.T. Make a note of this value!
Finance details: Create a part exchange vehicle with all the same details as the new vehicle record. However, note that the model code will be (say) DEMOSALES or DEMOPARTS depending on the department running the vehicle. The variant code may be simply CAR or COMM and the full description will need to be typed.
Vehicle Identity Tab: In the "Condition" area of the Vehicle identity screen of the used vehicle record, enter the driver's name and his department.
Purchase Brief Tab: On the Purchase brief screen ensure that the Purchase Price, the VATable amount, the Stock value and the Stock Adj value are all the same, that is the total of the new vehicle sales invoice.
Finance Details Tab: On returning to the Finance details Tab, the total owing should be nil. There are no deposits and no amounts due from any finance companies.
The new vehicle sales invoice and the part exchange purchase invoice should be printed in the normal way.
