Accounting & Bookkeeping KBLI 45201

Automotive Workshop & Service Accounting

Automotive workshops manage two revenue sources: service fees and spare parts sales. Recording must separate service COGS (labor, tools) with spare parts COGS for margin analysis. Work orders become key documents for tracking costs per vehicle. Arunika Consulting helps workshops implement neat accounting according to SAK EMKM.

Common Challenges

Combined Service + Parts COGS

Workshop invoices include services and parts, requiring separation for margin analysis of each.

Multi-SKU Inventory

Hundreds of spare part types with different turnover rates require a neat inventory system.

Unrecorded Work Orders

Without work order documentation, costs per vehicle and mechanic efficiency are difficult to measure.

Unrecorded Cash Revenue

Cash payments from walk-in customers are often not fully recorded.

Our Solutions

1

Work Order System

Implementation of work orders per vehicle recording services, parts used, and work time.

  • Accurate cost tracking
  • Measurable mechanic efficiency
  • Automatic invoicing
2

Service vs Parts Margin Separation

Account structure separating service revenue and COGS with spare parts revenue and COGS.

  • Clear margin per category
  • More precise pricing
  • Profitability analysis
3

Spare Parts Inventory

Spare parts stock cards with reorder point and slow-moving parts analysis.

  • Optimal stock
  • No overstock
  • Efficient working capital

Related Tax Regulations

SAK EMKM

SME Accounting Standards

Simplified reporting framework for SME-scale workshops and automotive businesses.

PSAK 23

Revenue

Revenue recognition for service fees and spare parts sales.

PSAK 14

Inventory

Recording of spare parts stock, oil, and workshop consumables.

Need Help with Automotive Workshop & Service Accounting?

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Frequently Asked Questions

How to calculate service COGS?

Service COGS consists of mechanic labor costs (salary per hour × work time), tool costs, and allocated workshop overhead per work order.

Is it necessary to separate service and spare parts revenue?

Yes. Separation is important to analyze margins of each. Services usually have higher margins (50-70%) compared to spare parts (20-30%).

How to record service warranty?

Estimated warranty costs can be recorded as provisions (liabilities) when service is performed, or recognized as expenses when claims occur for SAK EMKM.

How do accounting services improve operating cost efficiency?

Accurate, timely financial reports help you spot cost leakage, monitor margins by product or service, and make data-based decisions.

Can financial reports be accessed in real time?

Yes. We use cloud accounting systems so you can monitor cash flow, profit and loss, and business performance from anywhere.

How do you ensure reports are ready for external audits or banks?

Reports are prepared by qualified accounting professionals with clear documentation and traceable transaction data.