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Old 02-05-2012, 05:04 PM   #1
r1ag
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Default essential care contact billing

how are the essential care contracts sold on the drive
billed out -- labor sale - misc. sale - op code - labor type - ?
-- it is affecting gross when rectified -- now is being billed as
labor sale with no cost --

Last edited by r1ag; 02-05-2012 at 05:07 PM. Reason: to add
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Old 02-05-2012, 05:26 PM   #2
ohiobuckeyes
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Customer Pay our DMS is step up for the Service Contract to be bill, so when I post them in accounting all I have to do is adjust the cost and wash out the profit into the oil refund.

72.76 (117)
4.76 (215B)
68.00 (568A) 60.00 (568C)
5.00 (568C) Debit on the Cost
5.00 (130C) Credit in the Oil Fund.

LABOR SALE LC24N (CODE) OUR DMS IS STEP UP FOR IT.

Last edited by ohiobuckeyes; 02-06-2012 at 06:26 AM.
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Old 02-06-2012, 07:31 AM   #3
birch3x
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Also, whoever your administrator is (in house) for Chrysler Service Contracts needs to contact Star Performers to have the no-profit plans excluded from the count towards bonuses. Might need to get your rep involved.
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Old 02-06-2012, 12:53 PM   #4
XDCX
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Quote:
Originally Posted by ohiobuckeyes View Post
Customer Pay our DMS is step up for the Service Contract to be bill, so when I post them in accounting all I have to do is adjust the cost and wash out the profit into the oil refund.

72.76 (117)
4.76 (215B)
68.00 (568A) 60.00 (568C)
5.00 (568C) Debit on the Cost
5.00 (130C) Credit in the Oil Fund.

LABOR SALE LC24N (CODE) OUR DMS IS STEP UP FOR IT.
Does your dealership pay the Service Adviser an incentive for selling the Essential Care Contract?

On a different note, what's the "Oil Fund" if I can ask?
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Old 02-06-2012, 12:58 PM   #5
XDCX
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Quote:
Originally Posted by birch3x View Post
Also, whoever your administrator is (in house) for Chrysler Service Contracts needs to contact Star Performers to have the no-profit plans excluded from the count towards bonuses. Might need to get your rep involved.
Great point - this has been a problem for years.

I remember asking Detroit to add a "Department Code" to the Service Contract Entry screen years ago so the dealership could track which department sold the contract. I guess they're still working on it....

While selling service contracts on the service drive is a great thing, it creates the problem you described and it also creates a problem if the customer cancels the service contract. In most dealerships the Finance Department gets tagged with the cancellation chargeback even though the Service Department sold the contract.
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Old 02-06-2012, 03:20 PM   #6
ohiobuckeyes
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Quote:
Originally Posted by XDCX View Post
Does your dealership pay the Service Adviser an incentive for selling the Essential Care Contract?

On a different note, what's the "Oil Fund" if I can ask?
Yes the they are paid spiff for selling a contract.

The Contract only covers $20.00 for the LOF. The Fund covers the difference that the contract does not cover.


These plans do not count towards the F/I Managers Star Performers count. And in the Service Contract's screen do so Service Lane or Finance Department.
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Old 02-06-2012, 04:25 PM   #7
CL Pgh
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Just a “Heads-Up” here:

The mailings from Chrysler on these LOF policies are confusing to our customers say the least! The customers receive an envelope reading Chrysler Service Contracts on the outside… and the opening line on the letter reads exactly:

CONGRATULATIONS! You are now covered by a genuine Chrysler Group Service Contract issued by Chrysler Group LLC. You made a wise choice when you elected to protect your vehicle investment.

The letter continues on but never states anything about this being a LOF policy. Just be careful… some customers simply throw the envelope away only to call later complaining the never received their LOF policy… while others are showing up in the service dept. swearing they are covered for repairs by a Chrysler service contract.
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Old 02-06-2012, 04:44 PM   #8
CL Pgh
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Here's a copy of the LOF letter that the customer receives... reading the last line (under 1-800#'s) sure makes you understand why a customer would think they now have a mechanical coverage policy!




Last edited by CL Pgh; 02-06-2012 at 04:46 PM.
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Old 02-08-2012, 01:21 PM   #9
XDCX
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Quote:
Originally Posted by ohiobuckeyes View Post
Yes the they are paid spiff for selling a contract.
Thanks for the information. I think every CJDR store would benefit if they sold the Essential Care plans on the Service Drive and offered spiffs to their employees.

Quote:
Originally Posted by ohiobuckeyes View Post
The Contract only covers $20.00 for the LOF. The Fund covers the difference that the contract does not cover.
Great idea. I remember another dealership which took $100 from each CSC Maintenance Plan sold by the Finance Department and transferred it to a fund for the Service Department. That agreement eliminated the battle between Finance and Service about how much CSC paid to perform the major maintenance services.


Quote:
Originally Posted by ohiobuckeyes View Post
And in the Service Contract's screen do so Service Lane or Finance Department.
Thanks for the information - I didn't know CSC fixed that issue.
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Old 02-08-2012, 01:26 PM   #10
XDCX
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Quote:
Originally Posted by CL Pgh View Post
Just a “Heads-Up” here:

The mailings from Chrysler on these LOF policies are confusing to our customers say the least! The customers receive an envelope reading Chrysler Service Contracts on the outside… and the opening line on the letter reads exactly:

CONGRATULATIONS! You are now covered by a genuine Chrysler Group Service Contract issued by Chrysler Group LLC. You made a wise choice when you elected to protect your vehicle investment.

The letter continues on but never states anything about this being a LOF policy. Just be careful… some customers simply throw the envelope away only to call later complaining the never received their LOF policy… while others are showing up in the service dept. swearing they are covered for repairs by a Chrysler service contract.
Thanks for the heads up - I can see how a customer would be confused with that verbiage.

It seems like it would be a pretty simple fix for CSC to get this problem resolved. I know they read DealershipForum almost every day - hopefully they'll get this problem fixed.
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Old 03-19-2012, 06:21 AM   #11
tallymopar
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I built a GOG under MISC. and bill it that way.
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