If I sell a deal and the lease funds $20k but it has a $10k buyout, is my revenue $10k or $20k? We get a check for $20k, so that should be my revenue, right?
We see dealers process situations like this and many others in ways that dramatically skew your numbers. As one of our major projects is to "certify the numbers" for groups that manage to the Global Model and report their numbers to SBA we are struggling to bring some consistency to this.
What about lease points/rebates, do they go in the same account as manufacturer rebates/credits? Same for special pricing rebates/credits?
Here are our thoughts so far:
So for that 1st lease question the answer is the lower net number, ideally showing a line item (or multiple line items) with the gross number of 20k and a line item of negative 10k. A reduction to the revenue on the financials.
Lease points/rebates get credited back to the financials as equipment revenue. Special pricing rebates/credits from mfg’s (CSMP pricing, quarterly target rewards) get booked to Cost of Goods (reducing costs).
For service invoices from ship out dealers servicing your equipment, we see some dealers book those AP invoices to reduce service revenue while others might charge that to Cost Of Sales, we would like to get consensus here.