Body Shop — Collision Repair Revenue
Recording revenue from collision repair work performed in the dealership's body shop.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Insurance / Customer Receivable (Body Shop) | Asset (+) | 4,800.00 | - |
| Body Shop Labor Revenue | Revenue (+) | - | 2,800.00 |
| Body Shop Parts Revenue | Revenue (+) | - | 2,000.00 |
💡 Accountant's Note
Dealership body shops perform collision and cosmetic repair work, predominantly paid by auto insurers. Revenue is recognized when repair work is complete and the vehicle is delivered to the owner. Body shops work from insurer-approved estimates (typically using CCC One, Audatex, or Mitchell estimating systems). Supplemental costs identified during repair may require insurer re-approval before the work is performed.
Practitioner & Systems Framework
💻 ERP Architecture
Body shop work is tracked through repair orders in the DMS or a separate body shop management system. Each RO captures the labor hours (flat-rate paint and body technicians), parts used, and the approved insurance estimate. Revenue is recognized at RO closure when the vehicle is returned. Insurance payments are received directly from the insurer (or through the customer as the insured). Sublets (work sent to outside vendors — glass, alignment) are charged to the customer at a markup. Parts used in body repair are either OEM (required by some insurers) or aftermarket/LKQ — the type affects parts cost and revenue.
⚠️ Audit Flags
Auditors test body shop revenue against completed ROs and insurer payment remittances. Confirm that supplemental charges (additional damage found during repair) are properly authorized by the insurer before billing. Test that sublet work billed to customers at a markup is presented gross (if the dealership controls the sublet work) or net (if the dealership is merely an agent arranging the sublet). Review insurance direct pay arrangements — some insurers pay the shop directly, bypassing the customer.
📄 Required Documentation
Body shop repair orders (insurer estimate, supplemental approvals, RO closure), insurer payment remittances, OEM vs. aftermarket parts documentation, sublet work invoices and markup schedule, IFRS 15 principal/agent assessment for sublets, body shop WIP (open ROs) at period-end, and insurer direct pay agreement.
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