What Does TFR Mean in Cost Analysis?

The term TFR in the cost analysis refers to Transfer and indicates the financial handling of costs when a vehicle is moved from one department to another.

Explanation of TFR in Cost Analysis

• When a vehicle is transferred to a different department (e.g., from New Vehicles (30) to Demo Vehicles (32)), the system:
  1. Credits each cost line previously allocated to the vehicle in the original department.
  2. Consolidates these costs into a single entry under the new department.

How It Works:

• Cost Reallocation: Instead of maintaining the full breakdown of costs from the original department, the system simplifies it by transferring the total value as one figure to the new department.
• Example:
  • A vehicle starts in the New Vehicles (30) department with costs itemised for parts, labour, PDI, etc.
  • Upon transfer to Demo Vehicles (32), these costs are credited back to New Vehicles (30) and reallocated as a single line in Demo Vehicles (32).

Why This Happens:

This process ensures that:

1. Accurate cost tracking is maintained across departments.
2. The financial data reflects which department is currently responsible for the vehicle and its associated costs.