When a Repair Order is used to make changes to a unit in current inventory, the Type Of Sale is used from within the RO. As shown below these descriptions show what happens in DX1 when the feature is used.
Charge to MU: Any parts or labor added to the unit will increase the cost of the unit to the dealer. The retail price to the buyer will not change.
Installed: Parts and Labor added to the unit will increase what the customer pays for the unit. The Dealership is still responsible to pay the taxes for the parts and labor added to the unit.
Non - Installed: This will increase the retail the customer pays for the unit. The Dealership is still responsible to pay the taxes for the parts and labor added to the unit.
Pre - Delivery: This is used when Warranty work has to be done to a unit in stock. All parts and labor are tax exempt and cost does not change for the buyer or the dealership.
A common question though is, what happens from the accounting side once any of those options were chosen? See below for an example of each:
Note: The data being used for the given examples is pulled from accounting reports
Example # 1 Charge to MU - When RO or parts ticket is closed we record the sale for those departments and increase the unit inventory account. See attached RO 1857 and MU 246 when the unit was finally sold. All attachments for this example start with #1.
RO 1857 entries
Entries for Major Unit sale 246 after the unit is sold
Example # 2 Installed
The parts/labor are not sold until the unit is finalized. When the RO or parts ticket is closed nothing happens. All entries are at the time the unit is sold. The example below is for Major Unit deal 113 in reference to repair order 791
Example # 3 Pre-Delivery