couple of questions

[dhorrighs]

Hello, I have a few questions concerning posts I have read here. First billing out admin fee as z5000 on warranty repair orders. How is this done, we are on RR. Also billing out freight and postage and parts expedite? How would I add that to the repair order. Finally, is there somewhere in global warranty management I can see our parts markup warranty % thanks

[DHEGG]

Bill out the part as if you had it on hand and bill another line using - part number "Z5000" and description "TRADE ALLOWANCE" and input the difference you actually paid and GM cost making sure both the cost and sale are the same. your warranty administrator will have to input that separately when the claim is submitted. Freight will added to RO in the freight column when billing the part, if the system will not let you add freight you will have to bill that also as a part number ( part# "FREIGHT" description "ALLOWANCE") and put the freight from your invoice into 242 instead of acct 33F, your warranty administrator will submit that also using labor OP Z5001 in believe. usually parts markup is 40% unless you have applied for a different rate and Gm allowed it.

[dhorrighs]

Thanks, when we pickup a part a dealer, we bill the part out normally and account the difference against our 687. My question is on warranty jobs billing z5000 as a trade allowance why would I make my cost and price the same? since I routed the difference against 687 to begin with shouldn't I bill the allowance with a cost of zero and list price the difference? thanks

[bentwrench54]

It doesn't go against 687... that is for discounts.

It needs to go to account 680 which is for cost difference.

keep in mind that you can only claim cost difference while vehicle is under bumper to bumper warranty.

[bsnyder723]

It doesn't go against 687... that is for discounts.

It needs to go to account 680 which is for cost difference.

keep in mind that you can only claim cost difference while vehicle is under bumper to bumper warranty.

You can use 687 as a pickup/discount allowance, it's not just for discounts only.... I just had this discussion with my office manager.

[bentwrench54]

It doesn't go against 687... that is for discounts.

It needs to go to account 680 which is for cost difference.

keep in mind that you can only claim cost difference while vehicle is under bumper to bumper warranty.

You can use 687 as a pickup/discount allowance, it's not just for discounts only.... I just had this discussion with my office manager.

I didn't know that. Thank you!

[PartsPlant81]

We bill our parts expedite for Warranty parts that we pick up from other dealers/vendors to 24600 Sublet.

Our warranty administrator knows this as well as the accounting office; it may be the way our DMS is setup (Auto/Mate) since we have a MISC tab in the RO screen to put the expedite on so we get reimbursed from GM after the claim is paid.

[bsnyder723]

bentwrench,
we all learn something new everyday!!! 35 years in the trenches and I learn something new all the time..

[dhorrighs]

Ok, now I think I am understanding what you guys are saying. Really it would be ok on parts invoices bought from other dealers at trade price for warranty repairs, to route the whole invoice to my 242 account. Then when we bill out the part at warranty price a second allowance line with the cost difference would then pull the remaining money out of 242 therefore balancing my account

[bsnyder723]

Ok, now I think I am understanding what you guys are saying. Really it would be ok on parts invoices bought from other dealers at trade price for warranty repairs, to route the whole invoice to my 242 account. Then when we bill out the part at warranty price a second allowance line with the cost difference would then pull the remaining money out of 242 therefore balancing my account

Put the actual cost of the part to 242
Put the difference to 687
Then bill the difference as Z5000 and you will get reimbursed under warranty... That's how I was taught to account for the money.
Example GM cost is $100 you paid $115 242=100 687=15.00 Z5000 would be cost $15.00 sell $15.00