General
- Remember that there is no A/P in ServiceShop.
- Both methods presume that you have QuickBooks integration fully
operational and that you are familiar with it's use.
Documents
You will be using a service invoice to document the sale in
ServiceShop. The
trade will be handled as a separate transaction which technically does not
show on the service invoice. However you may use an additional labor line to
provide an explanation of the trade. The final A/R statement will show the
purchase transaction, the trade transaction, and the balance due if any. You may wish to produce a separate, formal, vehicle "Bill Of
Sale". Check local and state regulations as to required documentation.
Setup
In ServiceShop, you will need
- a pay type called "Expense". If you are creating this for the
first time, make sure the "Expense" checkbox is checked.
- an inventory group called "Used Veh".
Handling work performed on a vehicle taken in trade
Procedure Menu
Procedure 1 (applicable only if you do collect sales
tax)
Procedure 2 (applicable only if you do not collect
sales tax)
Procedure 1 (applicable only if you do not collect
sales tax) back to Procedure Menu
- Presumes new vehicle is in stock and available to be sold like any
other inventory item. Note that Step 4 may be performed first if you prefer
- it makes no difference.
- Presumes that you do not collect sales tax on any aspect of this sale.
- Sell the new vehicle on a service invoice.
- Accept payment on this invoice to A/R.
- Apply a credit to the customer's A/R for the amt of the trade in. Put the
entire amount of this credit to your G/L Inventory Account (in our standard
QuickBooks Chart of Accounts, this is the 1070 account "Inventory
S2K".
- Go into Maintain Inventory and create the used vehicle as a part number.
Enter the amount of the trade as the cost of the part. Put historical information such as the person who traded the vehicle in,
title, transfer, etc into long description. Be sure to put this part into
the "Used Veh" Inventory Group.
Note: Make a unique part number
EVERY TIME you take another vehicle in trade even if it's the same
make/model as a vehicle previously taken in trade.
- When the final cash out is done for the day, and the cash out is
exported and imported into QuickBooks, everything is taken care of.
Used Vehicle Inventory value can be checked at any time by running an
Inventory Value Report in ServiceShop.
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Procedure 2 (applicable only if you do collect
sales tax) back to Procedure Menu
- Presumes new vehicle is in stock and available to be sold like any
other inventory item. Note that Step 3 may be performed first if you prefer
- it makes no difference.
- Presumes that you do collect sales tax - on the difference between the
selling price of the new vehicle and the trade price.
1. Create the service order that will be used to handle this sale.
a. Create a labor line with all descriptive information
needed to describe both vehicles (the one you are selling, and the one you
are taking in trade).
b. Go to the Parts Tab for this labor line. Click on New Part. Search for
and find the new vehicle being sold. Before putting it on the service order,
update the part as follows:
- Change the list price to the net price after the trade.
- Change the Cost and Average Cost fields to the net cost after the trade.
c. Save your changes.
d. Put the vehicle on the service order.
2. Complete the invoice and Accept Payment.
After the next cash out and Export/Import to
QuickBooks, the following conditions will exist:
-
The vehicle has been removed from ServiceShop
inventory.
- QuickBooks Inventory has been reduced by the cost which appeared on the
service invoice, which is the net value of the vehicle after the trade.
3. Go into Maintain Inventory and create the used vehicle as a part number.
Enter the amount of the trade as the cost of the part. Put historical information such as the person who traded the vehicle in,
title, transfer, etc into long description. Be sure to put this part into
the "Used Vehicles" Inventory Group.
Suggestions:
- Make a unique part number
EVERY TIME you take another vehicle in trade even if it's the same
make/model as a vehicle previously taken in trade. (suggestion: for the part
number, use a 4 digit year then a space, then the last 6 digits of the VIN.
This will allow you to pull up your used vehicles by year).
- Used Vehicle Inventory value can be checked at any time by running an
Inventory Value Report in ServiceShop.
- A complete list of all used vehicles in stock can be generated by an
inventory pad by group (for the "Used Veh" Inventory Group).
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Handling work performed on a used vehicle
taken in trade
- Put the used part on a service order written to your own company.
- Perform the work. Add the parts to invoice invoice as needed. Price
everything to cost, including the vehicle itself.
- Complete the invoice.
- Accept payment to expense. Select the S2K inventory account.
- Update the cost of the actual part number - increase it to match the
amount of the service invoice on which the work was done.
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