Internal Vs External Parts/Service

Internal Vs External Parts/Service

Postby thebosslady » Wed Dec 11, 2024 6:00 pm

Hello! I'm new to this forum, but not new to the car biz. We're a small mom and pop shop used car dealership, just me and my husband. We recently outgrew my home-grown DMS and went with a subscription based system that includes accounting (no more QB). The COA confuses me a little bit because it's so different from QB. What I am especially confused about is the terms internal parts (or service) and external parts (or service). Can anyone explain the differences to me? Thanks!
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Re: Internal Vs External Parts/Service

Postby Parts007 » Thu Dec 12, 2024 1:25 pm

If a customer comes in for an oil change or tires or any service. You bill the parts and labor as customer pay. If you are prepping a used car for sale, you bill out parts on the repair order still but it is an internal RO and the ro total price is charged to the used car cost.

The amount you charge these internal parts (parts markup above cost) and labor rate is what you are describing. (I think)
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Re: Internal Vs External Parts/Service

Postby thebosslady » Thu Dec 12, 2024 3:54 pm

I think you are right. I spoke with someone yesterday, after my posting, that does the books at a larger dealer yesterday and he said that, basically, we'll never use "external". That's more for places like manufacturers or A dealers. Customer or internal only... but I will not use COGS if it's internal but post sale. HE said we might use external if we do a goodwill repair and split the cost with the customer. The customer would be external.
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