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What does Financial Accounting mean for the Automotive Retail Business ?

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Please do visit my blog released to discuss the meaning of Financial Accounting for Automotive Retail Business:


Gonna talk to you later.....

Axel Ritthaler


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hi axel,

Thanks nice blog ,

I am not expert in F& accounts but i can list down the few functions of finace and accounts in automobile dealership.

1) Maintainance of ledger accounts related to all income and expenditures incurred in sales , service area.

2) Maintainance of overhead cost account ( Resources related , water electircity, power etc )

3) Monitoring the verious inventories involved

inventories are on the broad level - Daily , monthly , Annual inventories.

which can be measured with the functional areas like Service - Work in progress , finished , used cars etc

Spare parts - new bought out parts , warranty parts, local items ( tyres, batteries and lubricants ) , on order , back order with OEM

Sales - new cars in stock, used cars in stock, on order stk , back order with OEM.

4) Monitoring the cost involved for service maintainance for workshop machinary , civil works and repairs , scrap disposals etc

5) ERP upgrade and inhouse development cost with fixed assets identification and calssification.

6) capcity planning with HR and its saleries and daily wages if any.

7) Accounts need to record the promotional offers expences for sales.

😎 Final customer invoice approval.

9) Direct expences made on payment of registration charges, government duties, taxes etc

In spite of all those functions f& A has to provide the budget for next year for all areas of automobile dealership.



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Hi Kaustubh,

thanks for you comment !

You are absolutely right and the list you gave could be even continued......

I do think and know, not just because of the fact that I am an SAP-employee, that SAP DBM contains these functionalities and many more, that can help any dealership run their processes smoother and lower TCO.

I have seen many Dealer-Management-Systems or Dealer-Management-Solutions through my 12 years of Automotive Consulting, but never saw a Solution that powerful like SAP DBM.

Do you know any Full-Suite DMS ?



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Dear axel,

With due respect of your experience , i have not saw any full proff DMS system for dealership , in india there is no integratry between softwares used at dealership.

If asked dealer replys with answer that , our priciple ( OEM ) enforce us to use this software only.

I have worked on AS 400 , foxpro based , Oracle based , Intranet based DMS systems and all are having a gr8 inpact on accounting section or dept that they dont able to understand logic and cant abel to work. every where in india you will find at dealers end there are 2 system promiants one for transactions related to service and sales OEm given and one more called TAlley exclusive for accounts department.

Also i can say further SAP DBM is good solution for vehicle service section only . It has limitation in vehicle sales procurement, parts warranty section , parts back order at OEM and standard reports KPI.