Government-Support Sales

Government-support customers have agreements with vendors to buy tires at discounted prices from certain dealers. Vendors set the tire prices to amounts that are usually below your cost. You can also sell other items and services at their regular prices.

Government-support customers include both government agencies and other organizations that receive price supports. Here’s what happens in a government-support sale. You sell the customer tires at a discount and other items at their regular prices. The customer pays you. Then you submit a claim to the vendor. The vendor gives you a credit for the difference between your cost of the tires and the price they were sold for. Depending on the circumstances, the vendor might also give you a commission or a handling fee.

To see how a government-support sale posts to the general ledger, see “Government-Support Sale Example” in the TireMaster User Guide.