Vehicle costs fall into two main headings:
Recoverable Costs
Non recoverable costs
Recoverable costs: Recoverable costs relate to those items which can be sold onto the customer, hopefully with a profit margin. A typical recoverable cost would be the cost of supplying and fitting an accessory. They are displayed through the purchase area of the record on the Specification screen in the right hand column (Cost) on the specification line applicable to the sale.
Vehicle Specification
Non recoverable costs: Non recoverable costs are not sold onto the customer and are costs incurred by the dealership in preparing and selling the vehicle. Typical of such costs would be P.D.I. or in the case of used vehicles, preparation costs. Non Recoverable costs are shown on the N/R-costs screen which is in the Costs section of the new or used vehicle ring menu.
Non recoverable costs can be negative, for example marketing bonuses, finance commission or in the case of used vehicles, road fund licence refunds.
Each cost has a source code attached to it. This in the column S and all costs have a default source code which, if necessary, can be amended.
The source codes indicate the anticipated source of the cost as follows:
S: Sales Ledger. (Used mainly for negative costs, for example sundry income.)
P: Purchase Ledger. (Used mainly for costs incurred as result of raising a cheque, for example Road Fund Licences or Introductory Commissions.)
F: Fixed costs. (Used only to reserve a certain amount in respect of each sale to meet future costs, for example First Service.)
W: W.I.P. (For all costs incurred in the dealership Service Department, Parts Department or Bodyshop.) The majority of costs will be of this type.
O: Outside Purchase. (For costs incurred through outside suppliers.)
D: Discount. (This is used only on discount specification lines and there will be no associated costs. The discount itself is a cost.)
For most purposes the Sales Administrator will only be concerned with internal charges (source code W) or outside purchases (source code O).
