Top down calculations are done to estimate purchase prices of trade-in cars. Once all mandatory information has been entered in the system, you can estimate the value of many factors, for example reconditioning, total cost, offered price.
A top down calculation helps you to calculate the purchase price for a trade-in vehicle. It takes into account profit, commission and future warranty, amongst other factors.
Certain values are calculated automatically according to the settings in the Top Down Calculation Parameters.
To perform a top down calculation:
Access the Top Down Calculation form via Vehicle Stockbooks, Showroom or the US-In (Used Vehicle Suite) form.
The Top Down Calculation form is displayed.
Capture the base value of the vehicle.
If Top Down Calculation Parameters have been set up, the system will change some of the values in the other fields.
Add or subtract the values for balance mileage, balance paint, SO's or Value correction, based on the condition of the vehicle. Add to the value if the condition of the vehicle is above average and subtract from the value if the vehicle is below average.
Vehicle tax and VAT amount are calculated.
Note: This calculation depends on whether the vehicle is VAT registered or margin.
Capture the values for reconditioning, warranty, overhead, chassis and mechanical.
Purchase, Purchase price gross and Offered purchase price are updated.
Capture a value in Offered purchase price if it is different from the calculated one.
The over/under allowance is calculated and the value over or under the estimation allowance is displayed in Over/under allowance.
Note: If the Top Down Calculation Parameters have not been set up, the system will not verify any values.
This form is displayed when you click, one of:
Vehicle stockbooks > [no. Company name] > Vehicle administration > File > Vehicle > Used Vehicle stock > File > Open select the used vehicle you require and click File > Load to re display the Vehicle Administration form with the used vehicle details in the form fields > select Franchise > Additional Details to display the UVS-In (Used Vehicle Suite) form > and you select File > Top Down calculation to display the Top Down Calculation form.
Showroom > [no. Company name] > Quotations > Quick Start > Add Trade-in > Add to display the Trade-in Details form > and you select File > Trade-in calculation to display the Top Down Calculation form.
Manufacturer Systems > Menu - Sales > Menu - UVS-In > UVS-In interface > and you double-click the gridline of the vehicle required to display the UVS-In (Used Vehicle Suite) form and you click File > Top Down calculation to display the Top Down Calculation form.
Menu Bar and Action:
| Menu bar | Action |
|---|---|
| File > Save | Transfers the new valuations to the quotations or to the VSB record. |
| File > Print | Prints the calculation on a printer. |
| File > Back to defaults | Resets the form and populates the fields with default values. |
| File > Close | Cancels the process and returns you to the previous form. |
| Help > Help | Displays this help file in a Web Browser. |
Top down calculations are used to calculate purchase prices for trade-in vehicles.
VAT-registered: Indicates the VAT status of the vehicle. For example, registered or not registered.
Basis value: Book value of the vehicle.
Balance mileage: Amount deducted from the base value for mileage.
Balance paint: Amount needed for reconditioning the paint work of the vehicle.
SO's: Amount to increase the base value for special options that may be fitted to the vehicle.
Value correction: Amount deducted in the case of an overvaluation.
Total base (incl. VAT).: The sum of Basis value, Balance mileage, Balance paint, SO's and Value correction.
Amount tax: Car tax on the vehicle.
Amount VAT: VAT on the vehicle.
Nett sales (excl. VAT): Total base price minus any tax.
Planned profit: Amount of profit that should be made from the sale of a vehicle.
Minimum nett sales: The Total base (incl. VAT) minus Amount tax or Amount VAT.
Reconditioning: Amount needed to recondition the vehicle.
Warranty: Amount the warranty value should decrease by.
Overhead: Amount needed for overhead costs.
Commission: Amount of commission.
Chassis: Amount needed to recondition the chassis.
Mechanical: Amount needed for mechanical reconditioning.
Total Costs: Sum of all the costs.
Purchase: Total costs minus minimum nett sales.
Trade-in VAT: VAT payable on the trade-in.
Trade-in tax: Tax payable on the trade-in.
Purchase price gross: Total estimated purchase price.
Offered purchase price: Purchase price offered to customer.
Over/Under allowance: Offered Purchase price minus Purchase gross price.
Direct resales: Select to indicate that the vehicle is being sold direct to the trade. All values are set to direct resales values according to the parameter settings
Top Down Calculation in VSB:
It is possible to transfer the following values from the Top-Down Calculation to the VSB purchase brief:
This transfer goes only from the Top-Down Calculation to the VSB record if the following criteria are met:
Note: If the A/c status (Account status) of a VSB record is not M for Memorandum, the Top-Down Calculation cannot be changed.
It is possible to transfer the Minimum nett sales price as well. The Minimum nett sales price is only taken over to the VSB record if the A/c status of the VSB record is equal to M for Memorandum and the parameter is set in the UVS-In parameters.
Note: If the A/c status (Account status) of the VSB record is not equal to M for Memorandum, you cannot change the Minimum nett sales price field.
Top Down Calculation in Showroom:
The Top Down Calculation form has two columns of figures in Showroom. In the left-hand column, the Over/under allowance is displayed. The calculation of it is displayed in the right-hand column.
For Margin cars, the VAT in the right-hand column is calculated on Total base (incl.vat) subtracted with Purchase price gross. This includes the VAT which is paid over the Over/under allowance of margin cars.
For Vat registered cars, the left- and the right-hand columns contain the same values, but you cannot change the right-hand column. The VAT is calculated on Total base (incl.vat/tax) and Purchase price gross separately. The Over/under allowance is determined by Offered purchase price subtracted with Purchase price gross.
Top Down Calculation in UVS-In:
The fields Nett Purchase, Trade-in VAT and Over allowance are only calculated where the fields Purchase price gross and Offered - Purchase price, are of unequal values.
Note: In the case of a VAT-registered vehicle, the right-hand column is not displayed.