There is a number of uses for house charges:
- To reduce down the profit on vehicle sales so that Sales men are paid less commission; money is then held in the balance sheet.
Some dealers will then use this for year end bonus or to cover losses on other vehicles.
- Used to cover the cost for Valeting wages, Late Costs & Advertising
- In house warranties. Cost would then be off set against any repairs that have to be carried out.
It should not really be used to cover PDI, Prep costs as these get charged against the Stock record already. Some deals may have had to do this on other systems that didn’t have the same facility’s as Navigator
When an order is placed against a stock record this will the trigger the house charge as it is down to the sale type as to what amount gets posted.
When deal is closed it will post a journal from the profit nominal code to the Balance sheet.