Automotive & Dealerships

CSI Bonus — Manufacturer Customer Satisfaction Incentive

Recording the bonus received from the manufacturer for achieving customer satisfaction index (CSI) targets.

Account NameTypeDebit ($)Credit ($)
Manufacturer CSI Bonus ReceivableAsset (+)35,000.00-
Manufacturer Bonus Revenue (CSI)Revenue (+)-35,000.00

💡 Accountant's Note

Manufacturers pay dealers bonuses (often significant — $50,000-$300,000+ per year) for achieving customer satisfaction index (CSI) scores above targets. CSI bonuses are measured by third-party surveys of recent buyers. These bonuses affect the dealer's ability to purchase additional vehicle allocations and maintain the franchise. CSI bonuses are recognized when the achievement period is confirmed and the bonus is earned.

Practitioner & Systems Framework

💻 ERP Architecture

CSI bonus programs run on quarterly or annual measurement cycles. The DMS tracks the expected CSI bonus based on the dealer's running score against the target. The bonus is recognized under IFRS 15 only when it is highly probable that a significant revenue reversal will not occur — this requires the measurement period to be substantially complete and the score to be conclusively above the threshold. Premature recognition of CSI bonuses at the start of the measurement period (when the outcome is uncertain) is incorrect. The manufacturer's dealer statement confirms the earned CSI bonus.

⚠️ Audit Flags

Auditors assess the CSI bonus recognition timing — confirm the measurement period is complete and the score is confirmed before recognition. For quarterly CSI bonuses still in progress at year-end, assess whether the bonus meets the IFRS 15 'highly probable' threshold for variable consideration. Review the manufacturer's CSI measurement methodology — any survey disputes or methodological changes could affect the bonus outcome. Test that CSI bonuses are separately disclosed from vehicle sales incentives in management accounts.

📄 Required Documentation

Manufacturer CSI program terms (measurement period, target score, bonus schedule), CSI score report by period, manufacturer dealer statement confirming CSI bonus earned, IFRS 15 variable consideration assessment, CSI score history (for probability assessment), and customer satisfaction survey methodology documentation.

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