General

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

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

  1. Sell the new vehicle on a service invoice. 
  2. Accept payment on this invoice to A/R.
  3. 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".
  4. 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.
  5. 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

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:

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Handling work performed on a used vehicle taken in trade

  1. Put the used part on a service order written to your own company.
  2. Perform the work. Add the parts to invoice invoice as needed. Price everything to cost, including the vehicle itself.
  3. Complete the invoice.
  4. Accept payment to expense. Select the S2K inventory account.
  5. 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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