DC 20210928

VWoA Compliance
From:
Sent:
To:
Subject:
Audi Communications 
Tuesday, September 28, 2021 4:01 PM
VWoA Compliance
Dealer Communication: Vehicle Sales Reporting, Reinstatement, and Audit Policy
Update – Effective September 30, 2021
Dealer Communication
To: DP, GM, Sales
From: Audi Operations
Vehicle Sales Reporting, Reinstatement, and Audit Policy Update –
Effective September 30, 2021
Dear Audi Dealer Principals, General Managers and Sales Managers,
This communication contains the updated Audi of America (AoA) Vehicle Sales Reporting,
Reinstatement, and Audit Policy. These policies and processes ensure the accuracy of customer data
and overall integrity of sales reporting records. Furthermore, these processes are in compliance with
established Audi global reporting standards.
1. SALES REPORTING REQUIREMENTS
1.1. Prior to delivering any new or Certified pre-owned Audi vehicles to customers and subsequently
reporting them as sold, Dealers must close 100% of applicable recalls, campaigns, and Required Vehicle
Updates (RVUs).
1.2. No one, including the Dealer, may report a new vehicle as Sold unless it is first reflected as Status 50
(Dealer Stock) in OMD Web.
1.2.1. Any new vehicle that is reported as Sold from Status 35 will be reinstated by Audi of
America and can only be reported once it reaches Status 50.
1.2.2. Should the dealer have a new vehicle in their possession that is not accurately reflected as Status
50 (Dealer Stock) in OMD Web, dealer must submit a picture of the VIN for the car, the Monroney label
along with the bill of lading to [email protected].
1.3. The vehicle “Sale Date” is defined as the date of delivery or handover of the vehicle to the end
customer; compliant with the Audi DtC (Delivery to Customer) process.
1.3.1. The delivery or handover of the vehicle to a customer cannot occur while the vehicle is in offsite
storage, NORAD or otherwise, and therefore the vehicle sale cannot be reported during this disposition.
1.3.1.1. Reported vehicle sales found to have violated this requirement will be reinstated, with all program
related implications therein and other potential consequences.
1.3.1.2. Upon presentation of documentation to AoA evidencing the actual date of delivery/handover to
the customer, dealer must report the sale utilizing the correct date.
1.4. Dealerships are required to report (i.e. enter “Reported Date” in OMD Web) all new, Certified preowned and pre-owned Audi vehicle sales within three (3) business days following of the date of sale
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(Sale Date), as stated in the Audi Dealer Operating Standards Guide (last published February 2021; page
6, Section 1.8 “Sales Reporting”).
1.5. In regard to Exports, the Audi Dealer Agreement Standard Provisions under Section 5.3, Sales
Outside Area, dictates that an Audi Dealer is “authorized to sell new Authorized Products only in the 50
United States (and Puerto Rico), and is not authorized to, and agrees it will not, sell any new Authorized
Product for sale or use elsewhere.”
2. INCENTIVE ELIGIBILITY RULES
2.1. Dealership sales reporting to AoA must be consistent with the title and registration filings, including
the date of sale.
2.2. A vehicle with a “Sale Date” and “Reported Date” not within the same monthly sales period is not
eligible for payment of retail incentives (ex. National Loyalty, Conquest, Marketing Allowances, etc.)
2.3. A vehicle with a “Sale Date” and “Reported Date” not within the same monthly sales period is not
eligible for Dealership Bonus programs (i.e. Margin Bonus).
3. KIND OF SALE (KOS) TYPES
When reporting vehicle sales in OMD Web, please enter the appropriate Kind of Sale (KOS) type into the
system as defined in the matrix below. KOS types are defined below by customer group, eligibility for
quarterly sales bonus achievement (Dealer “counter”) and Dealership Bonus payment (Dealer Bonus
“payer”).
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*Per Audi DtC guidelines, vehicles reported by AoA occur in the month where vehicle is wholesaled; Warranty
becomes active at time of wholesale
4. SAFETY RECALLS, COMPLIANCE RECALLS and STOP SALES
It is imperative that accurate customer information is collected and accurately entered during the sales
reporting process. The reported sale record must match the title and registration record, and any
owner/lessee/driver information must be correct. The accuracy of the customer information collected is
vital to any efforts related to recalls campaigns and Required Vehicle Updates (RVUs).
In the event of a recall or stop sale notification, dealers must confirm a vehicle’s eligibility by entering the
VIN in either the Recall / Service Campaign Lookup tool found on audiusa.com, or the National Highway
Traffic Safety Administration (NHTSA) Safety Issues & Recalls search tool. Please note it is a violation of
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Federal law for a dealer to deliver a new motor vehicle covered by a Recall Notification under a sale or
lease until the defect or noncompliance is remedied. Additionally, a dealer must not deliver any Audi
Certified Pre-owned vehicle affected by or subject to an open recall campaign. When any doubt exists
with respect to a vehicle’s status under an open safety or compliance recall campaign, dealer must utilize
one of the aforementioned look-up/search tools to clarify the impact and should maintain a hard copy of
the output on-site.
5. SALE REINSTATEMENT POLICY
5.1. From time to time circumstances will arise that will require a vehicle sale to be reversed or
information related to the sale to be updated. The reinstatement of a vehicle sale must occur in the
following circumstances:
 Sales transaction between the dealership and customer is not successfully completed and
dealership returns the vehicle into their inventory
 Changes between retail and non-retail KOS code (i.e. KOS 0,2, or 3 to KOS 4 or 5, or vice versa)
 Any change to the reported sale date
 All reinstatements must be completed within sixty (60) days of the reported sale date
 Reinstatements outside this threshold must be submitted with documentation to the
dealer’s Audi Area team for review and escalation
 Based on the timing of a reinstatement, the impact in relation to incentive and Margin
Bonus payments should be evaluated.
.
5.2. Changes may still occur to the sale record that will not result in a reinstatement:
 Any changes to only the customer information record (including customer, owner, driver name,
and address)
 Any changes to the reported incentive program or special incentive program codes
5.3 Only the Audi Incentive Services Desk team is authorized to execute reinstatement
requests. This policy requires the following process to be completed:
 An Audi Dealer submits reinstatement requests via the Audi Incentive Claims portal.
 This online portal allows users to reinstate vehicles, change KOS types, input customer
information changes, and track the history of their requests.
 Upon successful review and completion of the reinstatement request, the Audi Incentive Service
Desk team updates the reinstatement history in the Audi Incentives Claim Portal for viewing.
 Dealerships must include a copy of the signed sales agreement when requesting a reinstatement
or sale data change
6. NEW VEHICLE SALES AUDIT and CHARGEBACK POLICY
6.1. Timing
 Audits will be performed on a quarterly basis, and will focus on a full quarter of sales activity
 Audits will occur within 6 months (or 2 quarters) after the end of the quarter (example: 1st quarter
audit will occur no later than the 3rd quarter of the same calendar year)
 Vehicle VINs reported sold but never delivered or handed over to a customer will be reinstated.
6.2. Data collection and matching
 The audit process will focus on new vehicles sales reported in OMD Web within the quarter that is
being audited
 Identifying “Exported” Vehicles - New vehicle sales data for the audit period will be collected and
matched against the Piers Data to identify which vehicles have been exported
 An updated “Known Exporter Lists” is published monthly on iAudi for dealers to
reference.
 Identifying “No Title and Registration” Vehicles - New vehicle sales data for the audit period will
be collected and matched against IHS Markit data to identify which vehicles are missing title and
registration information
 Identifying “No Match” Vehicles - New vehicle sales data for the audit period will be collected and
matched against IHS Markit data to identify which vehicles have mismatched title and registration
name and address information
 Identifying discrepancies in the timing of sales reporting in relation to items 1.2 and 1.3 in the
Sales Reporting Requirements section of this document
6.3. Dealer communication and tools
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 Once the above review is complete, a letter will be sent to the Dealer Principal/General Manager
of record for each dealer impacted to:
 Explain the preliminary results of the audit
 Direct the dealer to visit iAudi where a “Summary Report” will be found showing VINs
identified in the audit, the impacted programs and the potential resulting dealer
chargebacks
 Provide guidance on how to appeal vehicles the dealer believes may have been
incorrectly identified in the audit
6.4. Appeal process and supporting paperwork (Except as otherwise provided by state law)
The results of the audit will produce two different populations of vehicles: one group that has been
identified as “exported” and a second group of vehicles that has missing or mismatched title and
registration data (“no title or registration” and “no matches”)
 Appeal process for “No Title and Registration” and “No Matches” – Dealers will have thirty days
(30) from receipt of the audit letter to appeal any VINs they believe were incorrectly identified.
Dealers must submit, following the appeal instructions detailed in the dealer audit letter, at least
one of the following documents as proof that the vehicle was titled and registered correctly
 Paid receipt of title transfer
 Paid receipt of registration transfer
 Copy of the vehicles current title or registration
 Customer’s insurance documents supporting a Total Loss situation
 Foreign diplomat paperwork
 Appeal process for “Exports” - Dealers will have thirty days (30) from receipt of the audit letter to
appeal any VINs they believe were incorrectly identified. The dealer can appeal VINs identified as
exported with at least one of the following supporting documents:
 Copy of vehicle title or registration
 Copy of vehicle sales documents
 Copy of payment for sales tax
 Purchaser’s or lessee’s name cannot be listed on the “Known Exporter List” published on
iAudi the date of the transaction.
 Purchaser’s or lessee’s name must match on all documentation for the sale or lease
6.5. Chargebacks (Except as otherwise provided by state law)
 After the thirty (30) day appeal period has expired and where the dealer has not successfully
appealed the audit decision, the dealer will be charged back for any VINs still identified in the
audit as an Export, No Title and Registration, or No Match.
 All chargebacks will be debited against the dealer’s parts statement.
 Impacted dealers will be charged back for any funds they received from the following programs:
 Any Retail incentive program
 Any Marketing Allowance incentive payments
 Any Business Performance Bonus or Margin Bonus payments
 Any Regional-based incentive which was paid
The quality of customer data is critical to the management of our collective businesses. Accurate and
timely sales reporting will ensure the integrity of our records, the timely extension of benefits to
customers, optimization of dealer program administration and compliance with established Audi global
reporting standards.
Audi of America will enforce the Vehicle Sales Reporting, Reinstatement, and Audit Policy outlined
above. All vehicle sales reported incorrectly will be adjusted, and any corresponding dealer bonus or
incentive payment changes will be processed accordingly. Any changes or updates to these policies will
be outlined in future communications.
Sincerely,
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Thiemo Rusch
SVP, Sales Operations
Audi of America, Inc.
For more dealer communications, visit the Communications page on iAudi.
Audi of America | 2200 Woodland Pointe Ave, Herndon, VA 20171
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