Shop Charge Off?

[Honest Engine]

I need to create a new payment category (in fact, I already have) for charging off shop expenses. In other words, if I'm making a repair to a vehicle at no charge, I need the payment type to reflect that this repair is COSTING the shop money, not showing up as REVENUE.

I created a new account called Charge Off, but I can't figure out how to make it an expense account instead of a revenue account. What's everyone else doing with their charge offs/shop tickets?


-Jerry

[JAKKERS]

Hi Jerry

I start a work order for the shop, all parts and labor costs are entered, with no sale price, that way cost of parts and labor are calculated as expense with no sale or profit. there may be a better way, just how I do it

Bryan

[steven kiser]

Are you looking for a P&L figure for year end or just something to keep things current on paper? This figure can be very misleading (in my opinion) if used to calculate your pricing matrix. What are you looking for? A write off? Quality control?

[Honest Engine]

I'm just looking for a place to store the things that the shop pays for. So, if I break someone's oxygen sensor by accident while doing some other repair, and I don't want to charge them for that, I need a shop ticket to charge it to, which is easy enough. But when I go to close the shop ticket at the end of each month, I don't see a way to have that go into the P&L report as a loss, it comes up as revenue, and I have to manually add those up at the end of the year and have my accountant subtract it.


Seems like there ought to be a more intuitive way to make that happen.

[ricmorin]

What we do in the scenario you describe is simply put the sensor on the actual customer Invoice. Make sure your COST is on the part record and the SELL price is zero. You could of course do this on a separate ticket if you wanted.

How does it show as income?

[Honest Engine]

Well, I could be doing it the wrong way. But the way I'd like to do it is to have a shop ticket.... not just for things like what I described, but if I have to buy shop supplies on the fly, or if I'm maintaining of the shop's loaner vehicles, I'd like to have an RO for that that gets charged as expense instead of income.

I guess I'm probably going about it all wrong, but the intuitive way for me would be to simply have a RO that gets charged as an expense when you close it, instead of being listed as revenue.

[ricmorin]

Right. All you have to do is include your costs but make sure that the sell prices are all zero. Then you have expenses but no income.

[Honest Engine]

Perfect. Thanks.