How to Investigate a Balance in Sales Suspense After Closing a Vehicle Deal

Sales Suspense is a temporary nominal account used during the vehicle sales process in Navigator.

When a vehicle has been invoiced but the deal remains open, it is normal for a credit balance to appear in Sales Suspense.

Once the vehicle deal has been closed, this balance should clear as the sale is posted to the relevant sales nominal accounts.

If a balance remains against a closed vehicle deal, further investigation may be required.

Why does Sales Suspense have a balance?

A balance in Sales Suspense does not necessarily indicate a problem.

For example:

• Invoiced but open deal: A credit balance in Sales Suspense is normally expected while the deal remains open.

• Closed deal: The Sales Suspense balance should normally have cleared once the deal has been fully processed.

• Closed deal with an outstanding balance: This may indicate that the expected accounting entries have not cleared correctly and requires investigation.

It is important to identify which vehicle is responsible for the balance before making any accounting adjustments.

How to investigate a Sales Suspense balance

Step 1: Check the Trial Balance

1. Run the Trial Balance report in Navigator.

2. Select the relevant accounting period.

3. Locate the Sales Suspense nominal account.

4. Check whether an outstanding balance remains.

This check is particularly useful as part of your month-end accounting procedures, once the relevant vehicle deals have been fully processed.

Step 2: Identify the vehicles contributing to the balance

To investigate the balance further, use the Schedule Nominal report.

1. Navigate to Nominal Ledger > Reports > Schedule Nominal.

2. Enter your Sales Suspense nominal code.

3. Set Schedule By to Stock Number.

4. Select the relevant reporting date.

5. Run the report.

The training example used nominal code *.*.70.97 for Sales Suspense. The applicable code should be confirmed against your dealership's nominal structure.

Scheduling the nominal by stock number allows you to identify the individual vehicles contributing to the overall Sales Suspense balance.

Step 3: Check the vehicle deal

Once you have identified a vehicle with an outstanding balance:

1. Locate the vehicle using its stock number.

2. Review the vehicle deal and its current status.

3. Check the Close Date to establish whether the deal has been closed.

4. Compare the deal's status with the balance shown on the Schedule Nominal report.

If the vehicle has been invoiced but the deal remains open, a credit balance may be expected.

If the deal has been closed and fully processed, the Sales Suspense balance should normally have cleared.

Step 4: Review the transactions

If a balance remains against a closed vehicle deal, use a Transaction Report to investigate further.

1. Run a Transaction Report for the relevant accounting period.

2. Filter the report using the vehicle's stock number.

3. Review the transactions associated with the vehicle.

4. Check whether the expected accounting entries have been posted and whether any outstanding amounts can be explained.

If you cannot identify why the balance remains, contact the Navigator Helpdesk for assistance.

Should I post a journal to clear Sales Suspense?

Do not post a journal simply to make the Sales Suspense balance zero without first identifying the cause.

Although this may remove the outstanding balance, it could leave the underlying accounting discrepancy unresolved.

The correct approach is to identify the vehicle and associated transactions, establish why the balance remains and determine the appropriate correction.

If you are unsure, contact the Navigator Helpdesk before making any adjustments.

When should I check Sales Suspense?

We recommend checking Sales Suspense as part of your regular month-end accounting procedures.

Ensure that the relevant vehicle deals have been fully processed before reviewing the balance.

A Sales Suspense balance relating to an open vehicle deal may be expected. However, amounts relating to closed and fully processed deals should be investigated.

Summary

Sales Suspense temporarily holds accounting balances associated with invoiced vehicle deals that have not yet been closed.

When a deal closes, the balance should normally clear to the appropriate sales nominal accounts.

If an outstanding balance remains:

1. Check Sales Suspense on the Trial Balance.

2. Use Schedule Nominal to identify the affected stock numbers.

3. Check the vehicle's Close Date and deal status.

4. Review the associated transactions.

5. Contact the Navigator Helpdesk if the balance cannot be explained.

Regularly reviewing Sales Suspense helps ensure vehicle sales transactions have been processed correctly and outstanding balances are identified before completing your month-end accounts.