"Certainly, we'll rectify that for you right now."
Guideline: Own Policy
Description:
This
term refers to those costs that must be borne by the Bodyshop
that cannot be reclaimed or charged on to warranty or any other
Department.
Example:
Let's
say that three days ago you repaired a vehicle and now the customer has
returned to you because one of the doors is not fitting properly.
Naturally,
you cannot expect the customer to pay any more money, as they have already paid for the job. Therefore you agree to
rectify the problem for the customer, and the question is who pays the
bill?
Discussion:
Since
this job is the direct responsibility of the Bodyshop, it
cannot be charged onto warranty or any other department and therefore
the hours spent on the rectification is accounted for within Rectification or Goodwill within your management accounts.
Whilst
this is a simplistic explanation, the same holds true for any other
work that you conduct that cannot be charged elsewhere.
Related Terminology:
This term is also known as Policy Adjustments, Policy Costs or Goodwill.