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Tracking equipment costs
LocPlus MLS has some powerful features that can assist you in tracking equipment costs. Using these features require that you enter and maintain all costs and income.
For each piece of equipment there are several cost figures.
Because this can provide an accurate analysis of each items profitability, entering actual equipment cost can be valuable to some dealers. There are four types of transactions that together determine equipment profitability. They are Purchase Costs, Labor Costs, Adjustments, and Sales invoice (INCOME).
REVIEW OF TYPES OF ACTUAL (DETAILED) EQUIPMENT INCOME AND COSTS:
If you are going to track actual equipment profitability, then you have to enter transactions for each of the four types of transactions listed above. The following is a list of each of the costs with some pointers about how to use them. All of the costs are accessible from the "EQUIPMENT INFORMATION" window. Select the "COST / MISC." tab on the bottom half of the window.
Previously entered income and costs for an item will be displayed in the grid titled "EQUIPMENT COSTS (DOUBLE-CLICK TO VIEW DETAIL)" in the middle of the tab section. The column titled "TYPE" indicates the type of cost listed below. If you want to view (or change) the detail for any of income or cost, you may point the mouse at that line and double-click with the mouse. To add a new income or cost press the button to the right of the grid.
PURCHASE COST (PURCH):
You can enter the date, your P.O. number, the vendors invoice number, and the vendor you purchased equipment, parts, or services from. It obviously is important to enter a date, description, and amount for the data to be useful. Entering the vendor and other information should be useful to you, but is not mandatory. If you do enter the vendor, the cost may be crossed reference from the vendor.
LABOR COSTS (LABOR):
To enter a labor cost you really only need a date, description, number of hours, and cost per hour. A work order and employee can be a benefit to you. Include time spent for unloading, cleaning, painting, repair, or just moving equipment around. You should include any cost that can be directly attributed to a piece of equipment.
For example, if you have a line of equipment and sell only part of the line, you may want to shift some of the cost from the original line to the new item.
An adjustment requires only a date, description, and amount. A positive amount indicates income to the piece of equipment (or lowered costs). A negative amount indicates and expense (or lowered income) to the current item.
SALE INVOICE (SALE):
There is an invoicing option that allows you to invoice a customer (available from the customer information window). If you use the invoicing option, the invoice amount will automatically display under each equipment item.
LocPlus MLS does not do any accounting functions. If you enter detailed costs, you may be able to have Koala Software develop a custom interface with your software to reduce data input time. This can be worthwhile if you have a large number of transactions. This can be expensive and costs and capability will depend on the accounting software you use. Call Koala Software for more information.
Last Updated: 03/18/03
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