There are various practical applications for utilising house charges within Navigator.
- Adjusting the profit margin on vehicle sales to reduce the commission paid to salesmen, with the excess funds being held in the balance sheet. These surplus funds may be employed for year-end bonuses or to mitigate losses on other vehicles.
- Covering expenses associated with valeting wages, late costs, and advertising.
- Offering in-house warranties that can be offset against any necessary repairs.
It is not advisable to use house charges for covering PDI or prep costs since these expenses are already accounted for in the stock record.
When an order is placed against a stock record, this will trigger the house charge, with the specific amount being posted being dependent on the type of sale. Once the deal is closed, the system will then post a journal moving it from the profit nominal code to the balance sheet.