Line Item Expense

Christopher Murray
I am very curious as to how many of the DS participants have a Line Item Expense for reconditioning? What might the advantages be compared to the traditional accounting method? What might be the complications? I have my own opinions but, as I have learned, they are worthless without outside opinions and influences.
Natasha Barnfield
That was right. Your opinion is not enough. But, your experience is the best explanation.
Clint Jones
I line item my reconditioning. There are many challenges in doing this. The first thing you have to do is get everyone involved to communicate. You need the person that is requesting the reconditioning (used manager) to understand the program and he has to look at every RO after it is complete. This is the person that is going to tell Accounting what items on the RO are reconditioning and what items are C/S. The person that put a number on the trade in must tell the UC Manager if he backed up an ACV to account for a cosmetic item such as a windshield. If the ACV was reduced $200 to account for the windshield, then everyone needs to know this so that the repair order doesn't get closed to Recon when it was actually a Cost Add. Consistency is the most important part of the process. The biggest benefit for me is having an answer for fluctuating Gross Profit at a glance. I also like tracing the correlation between reconditioning and gross profit. Everyone that tracks the line item will do it for different reasons.

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