1. TRAINING REPORTS
@ FORD BOHOL
(MARCH 1-5, 2016)
Ms. Teodora “Thea” M. Casio
March 8, 2016

2.  Finance and Insurance Training:
1. Vehicle Invoicing – Cash Basis
2. Vehicle Invoicing – Bank Financing Basis
3. Bank Financing Documentations
4. Bank Communications
5. Insurance Renewal of Clients
6. Insurance Companies Communications

3.  Service Billing Training:
1. Service Billing – Retail
2. Service Billing – Internal
3. Service Billing – Insurance
4. Service Billing – Warranty
5. Parts Sales – Over the Counter
 Cashiering Transactions Training
 Logistics Transactions Training

4. Process: Sales Reporting
Finance & Insurance Coordinator Functions:
a.) Loan Application – 3 days maximum
b.) Invoicing Process – 3 days minimum
c.) 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 Processing
f.) Submit bank documents
g.) Follow up proceeds from bank

5. h.) LTO Documentations
i.) Follow up Dealers Incentive (DI) from bank
j.) Insurance renewal
MONTH-END REPORT:
k.) Accounts Receivable (A/R) Reporting
l.) Insurance Renewal and New Releases Report
m.) Sales Report Matrix
n.) Scan Invoice and VSP Form Guide (not a report)
Note: After processing everything, update all
records: 1.) Sales Report
2.) LTO Updates

6.  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 Order
5. Reservation Form, if there is any.

7. 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 Form
b. 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, and
b. Authority to Deliver (ATD) from the bank before a
car unit will be release to client.
Additional Requirements if Bank Financing Basis:

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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 years
2.) 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.

14. 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

15. 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.

16. 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 Premium
Ex. = (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.

17. 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) = 900,000
For 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.

18. 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.”

19. 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.) Policy
Before 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).

20. 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%

21. SERVICE BILLING:
Service Billing – Insurance: All insurance claims
has a client participation:
Big Units: 3, 000.00 and Small Units: 2,000.00
It 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.

22. 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.

23. SERVICE BILLING:
Inter-dealership warranty transactions:
Unit is release from other dealer and claim a service
under warranty from us. Ex.: Ford Alabang
Provider: IBERO – Emergency Road Side Assistance
Free: 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.

24. SERVICE BILLING PROCEDURE: ERA
1.) 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 Invoice
4.) 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 Claims
3.) Clients ID 4.) Stencils (Chassis/Engine)
Terms of Payment: usual 30 days

25. PART SALES – OVER THE COUNTER:
 Cash basis by client w/ exemption (VIP)
 Inter company included:
1.) Suzuki 2.) Subaru 3.) JMC 4.) Mini Cooper
5.) 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.

26. 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.) Cash
2.) Check
3.) Credit Card: a.) Master Card b.) Visa Card

27. LOGISTICS TRANSACTIONS:
Reports: POP (Pull-Out Plan)
Shipping Company: From Manila to Cebu
1.) 2Go – usual shipper since they have many vessel
2.) 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

28. 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.

29. THE END …
THANK YOU FOR
YOUR TIME   