DealersEdge Professional Forums

What are the positives and negatives of using Shop Charges vs. Fee Codes?

How many of you use either shop charges or fee codes vs. a little higher labor rate?

One nice benefit for GM dealers is that GM doesn't see the fee codes so you can use them to bill out things like freight, and it won't count against your sales loyalty.

Fee Codes are typically by part or by labor op, and can individually be tailored to accounting journals. Shop Charges tend to get all lumped into and relieved to the Service Supplies.
So a tire for instance with fees in NY:
M&B Kit (Could relieve Parts Supplies)
Tire DIsposal (Could directly go to Outside Services)
NY Tire Fee ( Could tire directly to that accounting)

Greater FLexibility with Codes, in my opinion

Thanks for the information. I have been working with fee codes on and off. Generally I like them. We have done the same thing with tires. Disposal fees and taxes automatically go on the repair order when the tires are billed - can't be forgotten.

Have changed some shop charges over to fee codes due to tax issues.

Also found that they work really well for some recalls. Those recalls that always allow the same few cents for materials. I create a fee code attached to the recall op code and when the RO is written the fee is on there. No need to bill any of the supplies. This way the tech can keep the material and no one has to tell parts to bill it. The advisor can't forget to add it. So far so good.

It doesn't work on variable supplies - at least haven't found a good way to do that - yet...