Repair costs are essential in transportation. Effective cost control directly impacts profitability. This article focuses on accounting practices related to vehicle repair costs, helping businesses understand the process and track expenses accurately.
Requirements for Transportation Accounting
Accounting in transportation demands meticulousness and a deep understanding of the industry’s specifics. Key requirements include:
- Comprehensive Tracking: Closely monitor revenue, costs, and profits for each business segment, vehicle, and transportation contract.
- Detailed Classification: Categorize costs by specific objects like fuel, driver salaries, repairs, and maintenance.
- Accurate Accounting: Correctly apply regulations for accounting costs in transportation according to current regulations.
- Timely Reporting: Provide regular and ad-hoc financial reports to management for decision-making purposes.
Accounts and Monitoring Repair Costs
Account List: Use account 154 – Production and Business Costs in Progress to reflect repair costs and calculate costs.
Cost Objects: Track costs by vehicle, transportation contract, or specific business segment. Detailed tracking helps businesses easily control and compare costs between objects.
Transportation Operations and Repair Costs
Recording Direct Costs:
- Fuel Costs: Based on driver fuel purchase receipts, detailed fuel statements from suppliers, and fuel consumption norms for accounting. (Debit Account 154 / Credit Account 331, 111)
- Driver Salary Costs: Determined based on revenue per shift and revenue norms. (Debit Account 154 / Credit Account 334)
- Repair Costs: Track details for each vehicle, including equipment replacement. (Debit Account 154 / Credit Account 111, 112)
- Depreciation Costs: Account directly for each vehicle or allocate to each contract. (Debit Account 154 / Credit Account 214)
- Other Costs: (Debit Account 642, 641 / Credit Account 111, 112)
Recording Direct Revenue:
Based on approved vehicle schedules to create detailed revenue and driver collection statements. (Debit Account 111, 112, 131 / Credit Account 513, 3331)
Recording and Allocating Indirect Costs:
Indirect costs like selling expenses and business administration are allocated to each business segment and vehicle to determine profit.
Repair and Maintenance Operations
Both internal and external repairs require detailed recording of revenue and costs for each vehicle and employee. Accounting for parts costs, repair staff salaries, and revenue must comply with regulations.
Conclusion
Effective management of “vehicle repair costs in transportation” is crucial for optimizing business operations and increasing profits. Applying correct accounting practices, detailed tracking, and data analysis will help businesses control costs and make accurate business decisions.
