--- title: "Accounts payable processing for auto repair shops & dealerships" description: "Accounts payable processing for auto repair shops & dealerships: accounts payable outsourcing: invoice capture, coding, 3-way matching, approval routing." url: https://ledgerbpo.com/industries/auto/accounts-payable/ updated: 2026-09-11 publisher: LedgerBPO (SS Support Network LLC) language: en-US --- # Accounts payable processing for auto repair shops & dealerships Accounts payable for auto repair shops & dealerships is dominated by parts suppliers, sublet vendors, tire distributors, oil and chemical suppliers, equipment leases, and for dealerships the manufacturer's parts and vehicle statements and the floor-plan lender. Parts invoices arrive several times a day, returns and cores create credits that must be tracked, and supplier statements are where duplicates and missed credits hide. - Since 2020 - US · UK · CA · AU - Named accountant plus backup - Your software, no lock-in [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Updated September 2026 ## How it runs for auto repair shops and dealerships A LedgerBPO payables specialist captures every invoice through Dext, Bill.com or your shop system's purchasing module, matches parts invoices to receipts on repair orders, tracks returns and cores until credited, reconciles supplier statements monthly and prepares the payment run for your approval. You release every payment; we never move money. ## What is accounts payable outsourcing? Accounts payable outsourcing means a remote specialist runs the process from vendor invoice to approved payment run: capturing bills, coding them to the ledger, matching them to purchase orders and receipts, chasing approvals and preparing payments for release. The business keeps control of the bank account and the final release. The provider works in the company's own software. ## What we handle for auto repair shops and dealerships - Parts invoices matched to receipts on repair orders before approval - Returns and core charges tracked by supplier until the credit posts - Sublet vendor invoices matched to the repair order that billed the work - Manufacturer parts and vehicle statements reconciled for dealerships - Weekly payment run prepared with early-payment terms and due dates shown ## The KPI that matters here Every supplier invoice captured and matched within 2 business days of receipt. ## Auto compliance notes ### State dealer rules and title work Licensed dealers must remit sales tax on vehicle sales, submit title and registration applications within the state's deadline, often 30 days, and in some states charge no more than a capped documentation fee. We track sales tax, title fees and registration fees collected as liabilities per deal, reconcile them to what the DMV or tag agency was paid, and list any deal where the paperwork or the payment is late. Your compliance officer or attorney interprets the rules; we keep the schedule. ### Floor-plan financing Floor-plan lenders charge interest daily per unit, require curtailment payments as units age and reconcile their records to the lot at audit. We post interest and curtailments per unit, reconcile the lender's statement to the ledger every month, and flag any sold unit whose payoff has not cleared inside the contract window so a sold-out-of-trust position never goes unnoticed. ### Parts inventory and core charges Parts inventory must be counted, valued consistently and reconciled to the ledger, with obsolete stock written down under your CPA's policy. Core charges paid to suppliers are receivables until the core is returned, and supplier returns are receivables until credited. We track both by supplier so the balance sheet reflects what will actually come back. ### Cash reporting and consumer financing Dealerships must file IRS Form 8300 for cash over $10,000 and keep records supporting each finance contract. We list every 8300-reportable transaction from the deal file for your compliance officer to file, and we reconcile finance reserves and chargebacks from lenders to the contracts they relate to. We do not file the forms or give legal advice. ## Auto software we work in - [QuickBooks Online](https://ledgerbpo.com/software/quickbooks-online/) - [QuickBooks Desktop](https://ledgerbpo.com/software/quickbooks-desktop/) - [Square](https://ledgerbpo.com/software/square/) - [Gusto](https://ledgerbpo.com/software/gusto/) - Tekmetric - Shop-Ware - Mitchell 1 - Shopmonkey - Dealertrack DMS - CDK - [All 50 platforms](https://ledgerbpo.com/software/) ## More for auto repair shops and dealerships Other services for auto - [Bookkeeping](https://ledgerbpo.com/industries/auto/bookkeeping/) - [Invoicing and billing](https://ledgerbpo.com/industries/auto/invoicing-and-billing/) - [Accounts receivable](https://ledgerbpo.com/industries/auto/accounts-receivable/) - [Bank reconciliation](https://ledgerbpo.com/industries/auto/bank-reconciliation/) - [Month-end close](https://ledgerbpo.com/industries/auto/month-end-close/) - [Financial reporting](https://ledgerbpo.com/industries/auto/financial-reporting/) - [All auto services](https://ledgerbpo.com/industries/auto/) Accounts payable in other industries - [Marketing agencies & consultancies](https://ledgerbpo.com/industries/agencies/accounts-payable/) - [Behavioral health practices](https://ledgerbpo.com/industries/behavioral-health/accounts-payable/) - [Daycares, schools & education](https://ledgerbpo.com/industries/childcare-education/accounts-payable/) - [Clinical laboratories](https://ledgerbpo.com/industries/clinical-labs/accounts-payable/) - [The full accounts payable page](https://ledgerbpo.com/services/accounts-payable/) ## Frequently asked questions ### How do you make sure parts invoices match what was actually received? Each parts invoice is matched to the receiving line on the repair order in your shop system, and price or quantity differences are held for your approval with both documents side by side. Invoices for parts that were returned are matched to the return credit. This catches the most common overpayments: parts charged twice, returned parts never credited and price changes. ### What is a core charge and how should it be recorded? A core charge is a deposit the supplier adds to a rebuilt part until the old part is sent back. It is a receivable from the supplier, not a cost, until the core is returned and the credit posts. We track cores by supplier and repair order, list any older than 30 days for the parts manager and post the credit when it arrives. ### Do you reconcile the manufacturer's monthly statement for a dealership? Yes, the factory parts statement and vehicle statement are reconciled line by line to invoices, credits, warranty reimbursements and incentives posted in the ledger, and unexplained items are listed for the parts and sales managers. Floor-plan lender statements are reconciled under the bank reconciliation service for auto repair shops & dealerships. Next step ## Books closed. Invoices paid. Every month. Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close. - Reply from a named person within 1 business day - No setup fee, month-to-month - Your software, your data, no lock-in Start with a custom quote [Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Or call [+1-657-777-0006](tel:+16577770006) during US, UK or Australian business hours. --- Source: https://ledgerbpo.com/industries/auto/accounts-payable/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt