Decoding Auto Repair Costs: A Complex Equation

Nguyen Van A, owner of a 5-ton Hino truck in Long Bien District, Hanoi, shared, “Trucks run day and night, breakdowns are common. Each repair is a pain in the wallet, and I don’t know how to account for it properly!”

In reality, auto repair costs are not just about replacing parts, but also include many other items such as:

Main Components of Auto Repair Costs

Labor Costs: Depending on the vehicle type, brand, and the extent of damage, labor costs can range from a few hundred thousand to tens of millions of VND.
Parts Replacement Costs: Genuine parts are often more expensive than aftermarket parts, but they ensure quality and longevity for the vehicle. You should choose parts that suit your budget and needs.
Other Costs: Including items such as oil, fluids, inspection fees, cleaning fees, etc.

Auto Repair Cost Accounting: Mastering the Principles, Avoiding Losses

According to expert Le Van Binh (lecturer at the University of Transport and Communications): “Accounting for auto repair costs needs to comply with the current accounting regime and ensure honesty and accuracy.”

Steps for Auto Repair Cost Accounting:

Create a Repair Request Form: Clearly state vehicle information, damage status, repair requirements, and estimated costs.
Prepare a Goods Issue Voucher: When using materials and parts from the company’s warehouse, a goods issue voucher must be prepared according to regulations.
Obtain Invoices and Supporting Documents: Request the garage or repair shop to provide complete and valid invoices and supporting documents.
Record in Accounting Books: Based on invoices, supporting documents, and goods issue vouchers, record repair costs in the company’s accounting books.

Accountant reviewing auto repair costs

Important Notes on Auto Repair Cost Accounting:

Clearly Distinguish Between Repair and Maintenance Costs: Repair is the fixing of damage, while maintenance is a periodic activity to maintain the stable operation of the vehicle.
Choose a Reputable Garage: A reputable garage will ensure repair quality, price transparency, and provide complete invoices and documents.
Keep Invoices and Documents Carefully: These are important evidence for comparison and verification when needed.

Frequently Asked Questions about Auto Repair Cost Accounting

1. Can Auto Repair Installment Payments be Included in Expenses?

Answer: It depends on the installment payment method and tax regulations. You should consult with a tax advisor for specific guidance.

2. How to Account for Auto Repair Costs in Case of an Accident?

Answer: It is necessary to rely on the accident report, the decision of the competent authority, and the insurance contract to determine liability for compensation and account accordingly.

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Conclusion

Auto repair cost accounting is an important task that requires carefulness and meticulousness. Hopefully, this article has provided you with useful information. Please like, share this article, and leave a comment below to share your opinion with Xe Tai Ha Noi!