TRAINING REPORTS@ FORD BOHOL

(MARCH 1-5, 2016)

Ms. Teodora “Thea” M. CasioMarch 8, 2016

Finance and Insurance Training:

1. Vehicle Invoicing – Cash Basis2. Vehicle Invoicing – Bank Financing Basis3. Bank Financing Documentations4. Bank Communications5. Insurance Renewal of Clients6. Insurance Companies Communications

Service Billing Training:1. Service Billing – Retail2. Service Billing – Internal3. Service Billing – Insurance4. Service Billing – Warranty5. Parts Sales – Over the Counter

Cashiering Transactions Training

Logistics Transactions Training

Process: Sales ReportingFinance & Insurance Coordinator Functions:a.) Loan Application – 3 days maximumb.) Invoicing Process – 3 days minimumc.) Insurance Request – contact insurance company

d.) Prepare Promissory Note with Chattel Mortgage (PNCM) – for bank financing: Credit Advice only.After signing of PNCM, releasing of unit with schedule.

e.) Chattel Processingf.) Submit bank documentsg.) Follow up proceeds from bank

h.) LTO Documentationsi.) Follow up Dealers Incentive (DI) from bankj.) Insurance renewalMONTH-END REPORT:k.) Accounts Receivable (A/R) Reportingl.) Insurance Renewal and New Releases Report m.) Sales Report Matrixn.) Scan Invoice and VSP Form Guide (not a report)

Note: After processing everything, update all records: 1.) Sales Report

2.) LTO Updates

In preparing a Vehicle Sales Invoice, the following below are needed:

Standard Requirements: (Cash Basis)1. Completely filled-up Vehicle Sales Proposal (VSP) Form Guide.2. Photocopy of clients valid ID w/ 3 specimen signature.3. Stencils of car unit from service department.4. Sales Order5. Reservation Form, if there is any.

There are 2 Types of Bank Financing:1. Credit Advice (C.A.)2. Purchase Order (P.O.)

1. For C.A., a. Completely Filled-up Auto Loan Application Formb. Credit Advice Letter from the bank, once client loan is approved, and c. Promissory Note with Chattel Mortgage (PNCM)2. For P.O., a. Requirements are the same w/ Cash basis except for P.O. Letter from the Bank, andb. Authority to Deliver (ATD) from the bank before a car unit will be release to client.

Additional Requirements if Bank Financing Basis:

The Differences in Processing Documentations: For Cash Basis:

Dealer will process all documents needed. No Bank Involved and no PNCM needed.

Bank Financing Basis: Requires usual 20% Down Payment 1. For P.O., Bank will process all documents needed including

submission of PNCM to Registry of Deeds (ROD). Hassle free on the part of the Dealer but receive lesser Dealer’s Incentive (DI).

2. For C.A., Dealer will process all documents needed esp. PNCM and forward complete docs to the bank. In return, dealer will receive the Proceeds. Lastly, dealer forward OR/CR to the bank, and in return, dealer receive the DI. Risky and hassle on the part of the Dealer but receive higher DI.

Note: All Vehicle Sales Invoice (VSI) are prepared in Head Office-Cebu.

Time Frame: Minimum of 3 Days

Releasing of Car Unit: All documents must be completely filled-up and signed by the client.

If bank financing, the 8 copies of PNCM must be completely signed by the client in all original signatures.

NOTES/REMINDERS:• After preparing all documents needed, it will

be forwarded to Head Office-Cebu for Invoicing purposes c/o John Lyn De Roda.

• After invoicing, it will be returned back to Bohol for releasing of car unit to client. An Acknowledgment Receipt, pink copy of Sales Invoice and Delivery Receipt together with a photocopy of Certificate of Stock Registered (CSR) will be given to the client as proof of purchase.

• Then, prepare documents for LTO Registration.

Please see example of LTO Computation:

Cash/No Encumbrance – applicable to Cash Basis only.

With Encumbrance – applicable to Bank Financing basis both Purchase Order (P.O.) and Credit Advice (C. A.) transactions.

After processing, wait 7 days and follow up OR/CR of car unit and provide photocopy for filing purposes and forward original copy to client for cash basis or submit original copy to the bank if financing basis. In return, dealer receive the DI from the bank.

Please refer computation of DI below:

DI Computation w/out Discount DI Computation w/ Discount DI Computation w/ EVA Promo – applicable

to EastWest Bank (EWB) only

Dealer’s Incentive is computed by Sales Manager and checked by Accounting Officer and Sales Admin.

Note/Reminders:For Bank Financing Basis: After releasing of car unit to client, prepare all documents

needed and process PNCM @ Registry of Deeds (ROD) Tagbilaran.

PNCM must be notarized together with Deed of Assignment.

Also process Insurance Request of client. 1.) Third Party Liability (TPL) – lock-in with LTO Registration; free 3 years2.) Comprehensive Insurance – needed and required for bank financing basis. For Cash basis, depends on the client but dealer encourage all clients to purchase. 1 year per policy only.

Please see example of Chattel Computation for Bank Financing Basis (Credit Advice):

Chattel Computation Formula of Chattel Mortgage Fee:

=Amount Finance x (1+rate) x 1.03% + 1.75=Ex.: 1, 350, 000 x (1+.4948) x 1.03% + 1.75= 36, 374.08 Chattel Mortgage Fee

Note: Only BPI requires Doc Stamp: Amount: 20.00/doc stamp

PNCM PROCESSING:• Client signed all documents including 8 copies

of PNCM (all original signatures).• Photocopy of Vehicle Sales Invoice and Delivery Receipt

• Forward PNCM for Notary• Returned to dealer for BIR Doc Stamp – BIR Form 2000• Tax Amount must be based on Amount Finance

Formula: Amount Finance/200=Total Tax Amount • Fill up everything (BIR Form 2000) then go to BIR –

RDO 084 then go to bank for payment, then to ROD-Tagbilaran for final processing . Wait for 7 days up to 2 weeks then follow up if done.

• Receive Official Receipt from Land Registration Authority (LRA) together with the PNCM Form.

Please see also computation of Insurance:TPL Insurance: fixed amount – 1,660.40/year

Comprehensive Insurance:Formula = (Unit Cost x 1.75%) + 270 + 1, 095 = Total x 1.25 = Insurance PremiumEx. = (1,000,000 x 1.75%) + 270 + 1,095 = 18,865 x 1.25 = 23,581.25 Insurance Premium

Note: For Everest Unit – it is change from 1.75% to 1.95% based Unit Cost.

Insurance Renewal of Clients:The procedure in processing Insurance

renewal of client is the same with new insurance policy application. The only the difference is the total value of unit insured.

Total Value Insured = Unit Price less 10% for the first year.

Ex.: UP= 1,000,000 – (1,000,000 x .1) = 900,000For the next following year the basis would be

the 900,000 which is the Total Value Insured less 10% and so on and so forth.

SERVICE BILLING: Service Billing – Retail: Cash basis by client Service Billing – Internal:

Ex.: 1.) Pre-Delivery Inspection (PDI) of new unit. 2.) Preventive Maintenance of Demo Unit like change oil. This transactions is charge to the company and recognized directly as expense.

Service Billing – Insurance: Insurance claims by client. Our partner insurance company is “Standard Insurance Company, Inc.”

SERVICE BILLING:Service Billing – Insurance: Clients who can

avail this service are those with Comprehensive Insurance and claim w/in the coverage of their policy.

Requirements needed by insurance: 1.) Police Report 2.) Driver’s License 3.) PolicyBefore starting the service, it must be

approved first by the Insurance Company. If it is approved, they will provide us with “Letter of Authority” (LOA).

Insurance Computation Breakdown:• Own Damaged (OD) = 1.55%• Acts of Nature (AN) = .20%• Personal Accident (PA) = Free• Bodily Injury (BI) = 270.00• 3rd Party Damaged (3PD) = 1,095.00 • VAT = 12%• Doc Stamp = 12.5%• Local Gov’t. Tax = .05%

SERVICE BILLING:Service Billing – Insurance: All insurance claims

has a client participation:Big Units: 3, 000.00 and Small Units: 2,000.00It has a Split Invoice: Total bill a.) Client participation (cash)b.) Bill to Insurance (total bill less client participation)Service Billing – Warranty: (3 years free under

warranty) Car unit of client which is under warranty and must perform Preventive Maintenance check up such as 1k check up or 6 months after, whichever comes first, 10k check up, change oil and many more.

SERVICE BILLING:Service Billing – Warranty: It must be

approved for claims first by Service Manager before preparing a Service Invoice Billing. An Invoice is prepared every month-end.

Sales Manager will generate a report from “Service 2” and forward to Service Admin for Invoicing purposes.

Time Frame: 10 days of the following month all billing must be prepared and forwarded to FGPI.

SERVICE BILLING:Inter-dealership warranty transactions:Unit is release from other dealer and claim a service

under warranty from us. Ex.: Ford AlabangProvider: IBERO – Emergency Road Side AssistanceFree: 1 year, 4,000 or 80 kilometers; 3 incidents per

year SSP – Scheduled Service Plan: if client will

pay for 5 years, he will not affected by ups and downs of the service prices.

Other claims – Promo: Sometimes, FGPI will have Promo on their Parts.

SERVICE BILLING PROCEDURE: ERA1.) Client must have an appointment with

DCRC (Dealership Customer Relation Center In-Charge)

2.) Service Advisor will prepare R.O. (Repair Order)3.) Service Admin will clock in and prepare Service Invoice4.) Upon payment of client to the Cashier, the later will post

the payment and close the R.O.5.) For Service Billing - Insurance, upon payment by client with

his participation the whole R.O. will close even though it’s not yet paid by the Insurance Company.

Requirements before Insurance Company will pay: 1.) Service Billing Invoice 2.) Release of Claims3.) Clients ID 4.) Stencils (Chassis/Engine)Terms of Payment: usual 30 days

PART SALES – OVER THE COUNTER: Cash basis by client w/ exemption (VIP) Inter company included: 1.) Suzuki 2.) Subaru 3.) JMC 4.) Mini Cooper5.) Friend of the Owner, ex. Patrick Go (VIP)

CASHIERING TRANSACTIONS:Forms Issued to Customers:1.) Acknowledgment Receipt - issued for vehicle

payment and insurance renewal.2.) Official Receipt - issued for payment of

services and parts sales.

CASHIERING TRANSACTIONS:1.) From Service forward billing to cashier.2.) Cashier received payment from client.3.) Input/encode payment to ERA.There are 3 Types of Mode of Payment:1.) Cash2.) Check3.) Credit Card: a.) Master Card b.) Visa Card

LOGISTICS TRANSACTIONS:Reports: POP (Pull-Out Plan)Shipping Company: From Manila to Cebu1.) 2Go – usual shipper since they have many vessel2.) Sulpicio 3.) Super Shuttle

From Cebu to Bohol – Tagbilaran:• Only Everest Titanium Model – expensive From Cebu to Bohol – Tubigon:• Other units – cheaper cost of vessel

Petty Cash for Gas up – Pull Out/Shipment: 1.) Cebu – 500.00 2.) Bohol – 1,000.00

Process during damaged of new unit:

• Payable to us: Shipping Company • If unit is already landed in Bohol, service

department will prepare “Repair Estimate”.• Sales Admin prepare “Claim Letter” to Port

Authority thru: Shipping Company and attached the Repair Estimate Report from Service Department.

• Thus, start claiming damages from Shipping Company.

THE END …

THANK YOU FOR YOUR TIME