Shop Foreman Expense

[rolfejr]

How do you expense your shop foreman? I recently took charge of a dealership with a 35 year veteran as shop foreman. Since I am not a big fan of the position I have not looked into the accounting. I would appreciate those who have a foreman to give me your opinions on expensing this this monster.

Thanks

Rolfe

[DJWCPA]

It depends on the type of work your shop foreman does. If he is repairing a vehicle that is customer pay, warranty or internal work, of course this time should be flagged and posted to work in process. Any non-flag time should be expensed. The question is what category of expense. It could be unapplied time or it could be service other time like a service writer expense. It also could be service manager expense, as the foreman is a type of manager in some departments. It depends on whether people are paid on gross or net and whether the foremans pay should effect the gross or net. There is no one standard account to expense the pay.
More importantly do you need a foreman?

[Alan D. Goff]

I may not have the answer to part of your question, but I am one of those "monsters". If you are looking for a job description of a shop foreman, see the string in the dealer section that stated around 3-16-01. As far as expensing, my salary is considered shop management and yes hours I book are flaged under my tech number. To the question as to if you need a foreman, see my job description in the dealer section and if those jobs are done by others then maybe not, but with the shortage of trained techs, one of my hardest and most important jobs is training......hope this helps

[rolfejr]

Alan,

I did not mean to insult !! The "monster" is the expense of a shop foreman in a small shop with only 8 techs. The dilemma is the gentleman has over 35 years with the company, actually one of the first employees. He has not had much training over the past few years because of the prior management. When it comes to the older vehicles he is a whiz. Anything newer than 1997 and he probably is below most of my line techs as far as expertise. He's a good guy and deserves the respect that any 35 year veteran has earned. But I, as any good manager would, have a difficult time with the 45k salary diving straight to the bottom. I know he's mine forever so I'm trying to find the way to serve both masters.

Thanks to all for you input

Rolfe

[Alan D. Goff]

No offense taken....I would have a hard time justifing myself if you just used numbers and production. A shop foreman, like a manager, sometimes has a hard time showing in numbers what he does from day to day. I think you are in a hard spot and almost 3 years ago I saw the same situation, but from the other end.....I ended up being hired as the replacement for a shop foreman that just was not what the owner, new service manager and the dealership needed. Lots of tension, some turn over, but we were growing in areas that he did not have qualifications for and he also had been at the dealership for 20 some years....good luck