Automatic postings

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All financial transactions within the Frazer system are automatically posted to a general ledger account.  What follows is a detailed listing of what postings occur for most transactions. 
The account numbers used in this "automatic posting" process are from the NIADA standard chart of accounts.
These account numbers can be changed.  Each account number is followed by a "c" or a "d" to designate that the account is being credited or debited.

 

 

Some transactions also have an associated "optional instant" transaction associated with them.  These are transactions that could also be created when a check is printed, but optionally they are generated immediately when the original transaction is posted. 

For example, when you sell a vehicle account, 2030 Accounts Payable Title Fees is credited.  The system currently immediately debits account 2030 and credits the cash account.  Eventually this transaction will be optional letting you wait until the check is printed before posting the optional instant account.

Entering Sales

Click on a link below to jump directly to that category:

Credits
Debits
Cost of Sales
Write Off
Cash Receipts
Inventory Costs

Sales Journal - Journal 20 Retail Sales, Journal 21 Wholesale Sales

 

Sales (Credits)

 

Sales Price                                

               3500c Retail Car (not a truck)

               3520c Wholesale car

               3540c Retail truck

               3560c Wholesale truck

               Over allowance is handled using 3502, not 3500 see Trade-In on next page

 

Title Fees                                

               2030c A/P License and Registration Fees

               Optional instant: Debit 2030 Other Payables and Credit 1010 Cash

       

Document Prep Fee                        

               9070c Other Income

 

Service Contract                        

               3740c Used Vehicle Service Contract Income

               If cost: Debit 3740 Svc Cont Income (Credit 2040 A/P – Veh Protection and ESC if owed)

               Optional instant: Debit 2040 A/P Svc Cont & Credit 1010 Cash

 

Other Fee 1                                

               3760c Used Vehicle Other Fee 1 Income

               If cost: Debit 3760 Other Fee 1 Income (Credit 2060 A/P Other if owed)

               Optional instant: Debit 2060 A/P Other Cont & Credit 1010 Cash

 

Other Fee 2                                

               3770c Used Vehicle Other Fee 2 Income

               If cost: Debit 3770 Other Fee 2 Income (Credit 2060 A/P Other if owed)

               Optional instant: Debit 2060 A/P Other Cont & Credit 1010 Cash

 

Other Fee 3                                

               3780c Used Vehicle Other Fee 3 Income

               If cost: Debit 3780 Other Fee 3 Income (Credit 2060 A/P Other)

               Optional instant: Debit 2060 A/P Other Cont & Credit 1010 Cash

 

Insurance                                                

               3720c Used Vehicle Insurance Income

               If cost: Debit 3720 Insurance Income (Credit 2040 A/P Veh Protection and ESC if owed)

               Optional instant: Debit 2040 A/P – Veh Protection and ESC & Credit 1010 Cash

 

Sales Tax                                

               2240c Sales Taxes Payable 1

               2241c Sales Taxes Payable 2

               2242c Sales Taxes Payable 3

               2243c Sales Taxes Payable 4

 

Special Taxes                                

               2260c Other Taxes Payable

               (Doc Stamps, Dealer Inventory tax, Dealer License Tax)

 

Pay-Off on Trade In                        

               2050c Vehicle Lien payable

               Optional instant: Debit 2050 Vehicle Lien Payable, Credit 1010 Cash

 

Financing BH-PH

               Pre-Computed Interest - 2450c Unearned Interest – Other Liability

               Simple Interest - no transaction required

       

Sales Debits

 

Cash Down

               1010d Cash

 

Trade-In

               ACV of Trade - 1450d Non-truck Inventory, 1470d Truck Inventory

               OverAllowance - 3502d, 3522d, 3542d, 3562d

               (ACV of trade less Trade-in allowance)

 

Outside Financing

               Amount due to be received                1020d Contracts in Transit except:

               Reserve due to be received                1130d F & I Rceivables

               Finance Income (debit if cost)                3700c (3700d)

                       (All sales less all debits produces Financing Income or Financing COS)

               Prepaid finance charge

                       (This is a finance charge and is handled completely by acct 3700)

 

Buy-Here Pay-Here

               Accounts Receivable        1140d A/R Customer Notes

       

Cost of Sales

Cost of vehicle                                

               4500d Retail Car COS (not a truck)

               4520d Wholesale Car

               4540d Retail truck                

               4560d Wholesale truck        

 

               not including:                        

               - added costs                                

               - floor plan                        

               - lot fee (not an actual cost)        

 

Reconditioning (added cost)                

               4510d Non-Truck

               4550d Truck

 

Floor plan interest                                Not a cost at time of sale

                                                       (Expensed 8050 Floor Plan Interest at time of payment)

                                                       Optional instant: 8050d Floor Plan Interest, 1010c Cash

 

Relieve inventory                                        1450c Inventory Non-truck, 1470 Inventory Truck

 

Commissions

                                                       2210c Wages  & Commissions Payable

                                                       8020d Salesperson compensation

                                                       Optional instant: 2210d Payables, 1010c Cash

 

Internal Payoff

This is a new transaction, with the reference code of the account being paid off.  Journal 50.

                                                       1140c Accounts Receivable

                                                       3700c Interest Income (earned interest)

                                                       1011d        Cash received (internal)

                                                       2450d        Unearned Interest liability (Precompute only)

                                                       4625d        If Payoff doesn't cover entire amount – this is COS

 

Write Off

                                                       1450d Inventory (non-truck) for value of vehicle returned (1470d if change to truck)

                                                       4620d Used Vehicle Repossession Losses – write off amount

                                                       2450d Unearned interest – other liability (for precompute)

                                                       1140c Accounts Receivable

Repairs                                

                                                       4620d, 1150c

 

Repossession

                                                       8600d Repossession Cost when vehicle repossessed

                                                       8600c Repossession Cost is transferred to inventory account when repossessed

                                                       vehicle is written off

       

 

Cash Receipts – Journal 50

For contract and pick-up note payments:

                                                       1010d Cash

                                                       1140c Accounts Receivable if BHPH

               If outside financing – instead of credit to 1140 credit

                                                       1020c Contracts in Transit for amount n/i reserve

                                                       1030c For reserve amount

               Interest income – BH-PH -Precompute

                                                       In addition to 1010d, 1140c:

                                                       2450d Unearned Interest – Other Liability

                                                       3700c Finance Income

               Interest income – simple interest

                                                       1010d Cash

                                                       3700c Finance Income

               Late Fees Received

                                                       1010d Cash

                                                       3800c Income – Late Fees

               Bad Check Fees Received

                                                       1010d Cash

                                                       8380c Negative Expense – Bank Fees

               Other Fees (Repossession) Fees received

                                                       1010d Cash

                                                       3810c Income – Recovery Fees

               Repair payments

                                                       1010d Cash

                                                       1150c Service Accounts Receivable                                                        

Transaction program has five spots to add a record

1. Regular transaction that is entered
2. On early payoff, automatically adds UI (Unearned interest)
3. On early payoff, forgives remaining balance (FG)
4. Loss from Sale of receivable since not receiving full amount (SA)
5. Optionally will forgive small remaining balance                        

 

Vehicle Purchase Journal – Journal 70

Purchase Cost, Buy Fee and Added Costs all go to inventory

                                                       1450d Inventory Non-truck, 1470d Truck

                                                       1010c Cash

Added Costs after the vehicle is sold        

               If Sold and billed to customer: 

                                                       Amount billed: 5000c – Repairs Sales, 1150d – Service A/R

               ELSE:

               If option set to add to cost of vehicle and if sale was this month or last month:

                                                       4510d Non-Truck, 4550d Truck

                                                       1010c Cash

               else expense:

                                                       8070d Policy (or Free Service) Expense                

                                                       1010c Cash

 

Floor Plan

When a vehicle is purchased using a Floor Plan, the amount of the floor plan is credited to account 2110 - Notes Payable Used Vehicle instead of cash.  When a curtailment payment is made, or the floor plan is closed then cash is credited and account 2110 Notes payment is removed with a debit.

 

The Floor Plan costs are debited to account 8050 when the floor plan is closed.

 

 

Used Car Dealer Software by Frazer Computing, Inc.