DealersEdge Professional Forums

The body shop we have as part of our autogroup is not attached to any of our stores and is run as a stand alone facility. We struggle with getting a true picture on paint and materials gross. We review each and every invoice from our vendors so I'm confident our concern is not due to mis classification or true materials verses supplies. I'm curious does anyone post a cost of thier repair orders and if so, is it simply an educated guess, or a % based on volume or hours? We simply have it on a schedule and wash it out at the end of the month, so we dont really know where were at on any given day.
Thanks

Ask your paint vendor to see if your mix equipment can job cost material. New mixing systems enter the user and repair order then cost material mixed. If you add a value for paper and tape you will be surprised how close you can get. Track material use by Technician to further reduce costs. The mix system will provide a printout at the end of day and make only one entry for your repair order. Your repair order should be costed correctly and vendor invoices sent to an inventory account. The cost should only be items used not everything recieved. These items need to be inventoried every month and adjusted tp balance.

Having seen and used numerous equations over time, the only true equation is to 100% cost supplies on all body repair orders.
Take an actually true monthly inventory of paint and body materials.
Leave that actual amount in the general ledger and the remaining balance is the true cost of sales. General entry to reflect the appropriate balances and you have a true gross profit.
You must have an accurate monthly inventory.