Auto repair shop glossary
Auto repair shops use specialized terms for jobs, estimates, inspections, parts, payments and customer records. This glossary defines 16 common terms and explains how each one is used in day-to-day shop operations.
The job
Repair order (RO)
A repair order, or RO, is the record of a customer's service visit, including the vehicle, requested work, approved work, parts, labor and charges.
An RO is also called a job, repair ticket or work order in some shops and software systems. A repair order can contain the estimate, authorization, inspection results, parts, labor and final invoice associated with the visit.
In ShopOS, the repair order stays connected across the workflow from appointment through estimate, repair and payment.
Estimate
An auto repair estimate is a projected price for recommended work, usually showing the expected labor, parts and other charges before the work is completed.
An estimate gives the customer a clear view of the proposed work and expected cost. The exact requirements for estimates, including authorization and limits on additional charges, vary by state and situation, so shops should follow the rules that apply where they operate.
ShopOS auto repair estimate software keeps labor, parts and other estimate details together so approved work can move into the repair order without being rebuilt manually.
Labor time (flat-rate hours)
Labor time is the amount of labor assigned to a repair operation, often based on a published labor guide rather than the technician's actual clock time.
For example, a repair operation listed at 2.4 labor hours may be sold at 2.4 hours even if the technician completes the work in less or more elapsed time. Labor guides can help shops produce consistent estimates, although actual billing practices vary.
See how ShopOS estimates can use standard labor times when building repair estimates.
Authorization
Repair authorization is the customer's approval for a specific repair or service before the shop performs that work.
Authorization may be documented through a signature, digital approval, or another method accepted by the shop and applicable law. Keeping approval connected to the estimate and repair order helps the shop maintain a clear record of what the customer agreed to.
In ShopOS, customer approvals can sync directly with the repair order through ShopOS estimates.
Inspections
Digital vehicle inspection (DVI)
A digital vehicle inspection, or DVI, is a vehicle inspection recorded electronically, often with photos, notes, condition ratings and recommendations that can be shared with the customer.
A DVI replaces or supplements a paper inspection process and gives the shop a digital record of inspection findings. Photos and notes can make it easier for customers to understand recommended repairs.
Learn more about digital vehicle inspection software.
Multi-point inspection
A multi-point inspection is a systematic check of multiple vehicle components or systems, such as brakes, tires, fluids, lights and belts.
The exact checklist varies by shop, vehicle and service. Some shops use condition ratings such as Good, Fair and Critical to communicate findings and help customers understand which items may need attention.
You can also use Autograff's vehicle inspection checklist as a starting point for structuring an inspection.
Deferred work
Deferred work is a recommended repair or service that the customer has chosen not to approve or has postponed.
Deferred work is different from completed work because the recommended repair remains outstanding. Recording it against the customer's vehicle history gives the shop a reference point for future visits and follow-up.
In ShopOS, declined and deferred inspection items can remain associated with the vehicle for future reference.
Parts
Purchase order (PO)
A purchase order, or PO, is a document a shop uses to record an order placed with a parts supplier, including the parts ordered, quantities and costs.
A purchase order can help a shop connect incoming parts to the repair order they are intended for and make receiving and invoice reconciliation easier.
ShopOS parts inventory connects parts activity with repair-order and inventory workflows.
Markup and margin
Markup is the amount added to a part's cost to determine its selling price. Margin is the percentage of the selling price that remains after the part cost is deducted.
Markup and margin are related but they are not the same calculation. For example, a 50% markup on a $100 part produces a $150 selling price. The $50 difference represents a 33.3% gross margin on the $150 sale price.
Keeping part costs current is important when calculating selling prices and margins. ShopOS parts inventory keeps part cost and markup information connected to the estimating workflow.
Low-stock alert
A low-stock alert is a notification that inventory for a part has reached or is approaching a defined quantity threshold.
Low-stock alerts help shops identify parts that may need to be reordered before inventory reaches zero. The threshold can be based on a minimum stock level, usage pattern or another inventory rule, depending on the system.
ShopOS parts inventory helps shops track parts and inventory levels as part of the repair workflow.
Money
Deposit
A deposit is money collected from a customer before some or all of the repair work is completed, often to cover an expected cost such as a special-order part.
Whether a deposit is appropriate, how much can be collected, and how it must be handled can depend on the repair, the customer's agreement and applicable state or local requirements.
In ShopOS, a shop can configure deposit rules within the estimate workflow.
Itemized invoice
An itemized invoice is a bill that lists the individual charges for a repair, such as parts, labor and other applicable charges, instead of showing only one total.
The exact information an auto repair invoice must contain varies by jurisdiction. Shops should follow the invoicing and consumer-disclosure requirements that apply where they operate.
An itemized invoice can make it easier for a customer and shop to understand exactly what was charged. ShopOS invoicing carries approved estimate details into the invoice workflow.
Average repair order (ARO)
Average repair order, or ARO, is total sales divided by the number of repair orders for the same period.
For example, if a shop records $50,000 in sales across 100 repair orders, its ARO is $500.
ARO is a useful operating metric because it shows the average revenue associated with a closed repair order. Shops can track it over time and, where useful, break it into labor and parts components.
To estimate the revenue associated with missed calls, use the ShopOS ROI calculator.
The front desk
Booking link
A booking link is a web address that lets a customer select an available service or appointment time and submit a booking online.
A booking link can be placed on a shop website, social profile, email, text message or other customer-facing channel. Depending on the scheduling system, the appointment can be added directly to the shop's calendar rather than creating a separate request for staff to enter manually.
Learn more about auto shop scheduling software.
AI receptionist
An AI receptionist is software that uses artificial intelligence to handle routine customer phone conversations, such as answering common questions, booking appointments, rescheduling and providing vehicle-status information.
An AI receptionist is different from a voicemail system because it can interact with the caller and, when connected to shop software, can use information such as appointment availability.
The ShopOS AI receptionist can handle routine calls and book appointments through the shop's scheduling workflow.
Customer and vehicle history
Customer and vehicle history is the record of a customer's relationship with the shop and the service history associated with a specific vehicle.
A useful vehicle history can include previous repair orders, inspections, recommended work, completed work, invoices and other service information. Keeping these records together helps advisors understand what has already been done when a customer returns.
ShopOS CRM keeps customer and vehicle information connected to the repair workflow.
Frequently asked questions
What's the difference between an estimate and an invoice?
An estimate is a projected price for work before it is completed. An invoice is the bill for work and charges that were actually completed or incurred. An estimate can change when additional work is identified and properly authorized, depending on the circumstances and applicable requirements. In ShopOS, an approved estimate can flow into the repair order and invoice workflow so labor and parts details do not have to be rebuilt manually.
What does ARO mean in a repair shop?
ARO stands for average repair order. It is calculated by dividing total sales by the number of repair orders for the same period. For example, $50,000 in sales across 100 repair orders produces a $500 ARO.
What is a repair order?
A repair order, or RO, is the record of a customer's service visit. It can contain the customer's information, vehicle information, requested and approved work, inspection findings, parts, labor, charges and final invoice.
What does deferred work mean?
Deferred work is a recommended repair or service that a customer has not approved or has postponed. Recording deferred work gives the shop a reference for future visits and follow-up.