Fleet Clearing Account

 

Fleet Clearing Account

We, like many others, run our cost through a Fleet clearing account that is passed on to our users through a rate by truck type, etc.  We have two main questions:

1)Is your maintenance budget (i.e. labor, materials, burdens, facility cost, etc.) acccounted for separately than the clearing account (for example:  you could add 10 new vehicles that will be paid for through the clearing account but your maintenance account may not be adjusted for the additional expense)?

2)There have been many questions posed recently that we would be very interested in how this is handled by others.  A.)  Abnormal maintenance (damage to vehilcles caused by the user) - do you charge separately or run through the clearing account?  If through clearing account, do you assume historical charges for budgeting purposes? B.)  Modifications requested on vehilces due to changing needs (i.e. safety materials needed to be stored, etc.) how do you handle this expense? C.)  Campaigns or items requested by Safety, Audit, etc. that are believed to be needed to improve the safety of the vehicle - not necessarily required by manufacturing, engineering, etc.  but internal requests that add cost to the vehicle and maintenance expense.

Anonymous (not verified)
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1) We use two separate accounts for our budgets. The first is a capital account and the second is a clearing account. The capital account is for all capital purchases such a new truck or a large tool. Once our budget is set, any additional vehicle request from our clients must be funded separately. If they want a new truck, they must transfer dollars to our capital account and then we would buy the unit for them. Any maintenance associated with those units would be handled through our clearing account. Our clearing account charges our clients for all costs associated with our fleet through a daily vehicle use rate. In your example, we would be over budget on the maintenance portion of the equation. Once we set our budgets, we can't change them. If our clients add new units we would both be over budget: us on our charge-backs and them on their actual operating budget. We would still recover the dollars, but they would be unbudgeted.

2) All of our costs are recovered through our daily use rates with the exception of three things:

a) accidents
b) modifications
c) any non fleet related client requests. For example, if we are asked to "stand by" on a job without doing any fleet related work or if we got a request to do other utility work like cutting the bolts off on a street light.

In each of these examples our clients would be billed directly for those charges. It would not go through the charge-back process.

Anonymous (not verified)
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At APS we charge all actual costs to the vehicle level and the charges hit the budget of the department owning the equipment. We have found that when the department management see the actual costs they can more readily pick out where a vehicle may be abused, etc. We feel that this works better than an average vehicle class charge rate where the people who take care of the vehicles subsidize those who don't. The departments have access to drill down and see each actual work order, fuel transaction, lease cost etc. It definitely makes them more accountable for their costs.