How Are House Charges Used in Navigator?

House charges in Navigator have several practical applications, including:

1. Adjusting Profit Margins:

   • House charges can be used to adjust the profit margin on vehicle sales, which reduces the commission paid to sales staff. The excess funds are held in the balance sheet and can be utilized for year-end bonuses or to offset losses on other vehicles.

2. Covering Additional Expenses:

   • House charges can cover expenses such as valeting wages, late costs, and advertising.

3. Providing In-House Warranties:

   • They can also be used to offer in-house warranties, which can be offset against any necessary repairs.

Important Note:
It is not recommended to use house charges for covering PDI or prep costs, as these expenses are already accounted for in the stock record.

How House Charges Work:

• When an order is placed against a stock record, this triggers the house charge, with the amount posted depending on the type of sale.
• Once the deal is closed, the system automatically posts a journal entry, transferring the charge from the profit nominal code to the balance sheet.

This structured approach to using house charges ensures that funds are effectively managed and allocated within the business.