DET Transport Operations — Billing & Job Costing¶
Desert Equipment Transport is a captive transport profit center owned by the Arizona Truck Group group. Its sole customer is Superior Truck & Equipment (Superior Truck & Equipment), which pays arms-length market rates for vehicle transport services. Every haul must generate margin — Desert Equipment Transport is not a cost-allocation vehicle.
What Desert Equipment Transport does¶
Desert Equipment Transport moves equipment for Superior Truck & Equipment using one owned tractor-trailer rig:
- Tractor: 2015 Kenworth T680 (
15D52TR, VIN 1XKYD49X7EJ415742) - Trailer: Ledwell step-deck (intercompany lease from Superior Truck & Equipment)
Two service modes:
| Mode | When | How |
|---|---|---|
| Drive-away | Truck can be driven under its own power | Driver flies to pickup city; drives truck back loaded. One-way miles only; no deadhead |
| Trailer haul | Truck must be flatbedded | Kenworth + Ledwell round trip; rate bakes in the empty outbound leg |
Rate Schedule v1.0 — effective 2026-06-11¶
Authorized by Brandon Tomkins. Rates are a living schedule — review triggers below.
| Service type | Rate | Basis |
|---|---|---|
| Drive-away | $3.50 / mi | One-way loaded miles |
| Trailer haul | $5.00 / mi | One-way loaded miles |
Both rates are within Southwest regional market range (§482 arm's-length support):
- Drive-away: $3.00–$4.50/mi (United Road, DAS benchmarks)
- Trailer haul: $4.50–$7.00/mi loaded (flatbed/step deck, regional equipment transport)
Billing: flat rate per job, rounded to the nearest $250 (< $3,000) or $500 (≥ $3,000). Minimum margin target: ≥ 30% (revenue − COGS) / revenue before posting any invoice.
Job costing framework¶
QB class = transported truck's stock number¶
Every haul invoice in Desert Equipment Transport QuickBooks uses the transported truck's stock number as the line-item class. This enables per-truck job P&L directly from the class report.
08E62DT→ 2008 International 7000 (VIN 1HTWDAAR88J675363)23F63WT→ 2023 Freightliner M2 (VIN 3ALACWFC8PDUH5879)24D53WT→ 2024 Freightliner M2 (VIN 3ALHCYD2XRDUS1124)06G34WT→ Merced haul truck (stock per Superior Truck & Equipment inventory)24L46WT→ 2024 San Diego pickup (VIN 2NKHHJ7X6MM443037)
The Kenworth tractor (15D52TR) is a fixed asset — it is not a job class.
15D52TR is inactive in Desert Equipment Transport QB and must not be used on any invoice line.
Stock numbers are the authority. Always verify in
G:\STE - Superior Truck & Equipment\A101 - Inventory\Stock Number.xlsx
before posting an invoice. Never assume from the class code or truck description.
Cost estimate — run before every quote¶
Target margin: ≥ 30%. If estimated margin < 30%, escalate rate or flag to Brandon.
| Item | Formula | Typical |
|---|---|---|
| Driver wages | Est. hours × $28/hr | varies |
| Airfare (outbound) | Actual quote | $200–$500 |
| Pre-trip rental car | Actual | $75–$150 |
| Fuel (return loaded) | Miles ÷ 6.5 mpg × regional diesel PPG | varies |
| Hotel (nights on road) | $120–$150/night | varies |
| Meals/per diem | $60/day | varies |
| Tolls / permits | Route-specific | $15–$50 |
| Item | Formula | Typical |
|---|---|---|
| Driver wages | Est. hours × $28/hr (both legs) | varies |
| Fuel outbound (empty) | Miles ÷ 7 mpg × diesel PPG | varies |
| Fuel return (loaded) | Miles ÷ 5.5 mpg × diesel PPG | varies |
| Hotel | $120–$150/night | varies |
| Meals/per diem | $60/day | varies |
| Tolls / permits | Route-specific | $15–$50 |
Regional diesel price assumptions (update from receipts as data accumulates):
| Region | Assumed PPG | Last updated |
|---|---|---|
| Arizona | $3.60 | 2026-06-11 |
| California | $4.60 | 2026-06-11 |
| Texas | $3.30 | 2026-06-11 |
| New Mexico | $3.50 | 2026-06-11 |
| Other SW states | $3.45 | 2026-06-11 |
Overhead cost allocation — methodology¶
Cost classification framework¶
Pool-allocated each period (rig-pool method):
| Account | Type | Notes |
|---|---|---|
| Insurance Expense | COGS — rig protection | Monthly amortization of Progressive Commercial Auto policy |
| Equipment Lease Expense | COGS — rig lease | Monthly Superior Truck & Equipment operating lease for the Ledwell step-deck |
Direct job expenses — classify on the source bill at entry:
| Account | How to classify |
|---|---|
| Toll Expense | Assign job class on the source Bill when entering. Each toll belongs to the job that incurred it. |
Period G&A — carry unclassified:
| Account | Why |
|---|---|
| Interest Expense | Entity-level financing |
| Bank Service Charges | Entity-level G&A |
| Payroll Tax Expense | Statutory employer cost; split by QB paycheck structure |
Allocation doctrine — rig-pool method¶
Principle¶
Insurance and Equipment Lease are rig costs — they exist because Desert Equipment Transport operates the Kenworth tractor + Ledwell step-deck trailer. Each period, these costs are allocated to the jobs that physically used the rig, weighted by each job's share of rig-pool revenue.
Rig-pool definition: the set of jobs in a period where the Kenworth + Ledwell were deployed. In most periods this will be Truck In (trailer haul) jobs only. When other job types co-use the rig in the same period, they join the pool for that period.
Revenue-weighting within the pool¶
Revenue-weighting is used because: (a) larger-revenue jobs generally represent more rig time and risk exposure, and (b) direct time or mileage per job is not currently tracked in QB. Revenue is a reasonable proxy until per-job time data is available.
Rig pool vs. QB class structure¶
The QB class structure (Truck In / Drive In / Fly In / Delivery) describes the commercial service mode sold to the customer — it does not always describe the physical equipment used. In June 2026, three Delivery-class jobs used the Kenworth + Ledwell on a single run: two trucks were loaded on the step-deck, a third drove behind the rig to the same customer. The rig-pool method captures actual equipment use regardless of QB class name.
Insurance — Progressive policy 875413676¶
Annual premium $31,840 covers exactly two vehicles:
| Vehicle | Coverage | Annual premium |
|---|---|---|
| 2014 Kenworth tractor (VIN 1XKYD49X7EJ415742) | Liability $29,185 + UM/UIM/Med Pay $916 + Roadside $159 | $30,260 |
| 2021 Ledwell step-deck trailer (VIN GA72A97L033110) | Liability $672 + Comp $222 + Collision $686 | $1,580 |
This policy covers the rig specifically. All premium is allocated to rig-pool jobs.
Equipment Lease¶
$1,200/month STE-DET operating lease for the Ledwell step-deck. Follows rig-pool jobs.
Toll Expense¶
Each toll is a direct job cost incurred on a specific route. Classify the job class on the source Bill at entry. If the job is unknown at entry, assign the class when the job is identified.
Monthly procedure¶
- Review the period's job list and identify which jobs used the Kenworth + Ledwell.
Update
RIG_POOLinZ:\autonomous_bookkeeper\am_det_alloc_truckin.py. - Run the script (dry run) to preview splits.
- Run with
--goto post classifying JEs dated the last day of the period. - Refresh P&L by Class in QB.
- Append an entry to the period-by-period decision log below.
Triggers to revisit:
- Desert Equipment Transport acquires a second rig → costs traceable to a specific vehicle
- A job has a dedicated insurance rider → direct-assign that premium
- Per-job mileage or hours tracking available → prefer over revenue-weighting
Period-by-period decision log¶
Each entry records which jobs joined the rig pool, the operational facts supporting that decision, and the final splits posted to QB.
June 2026¶
Period: June 1 – June 30, 2026
Overhead allocated:
| Account | Amount | QB source |
|---|---|---|
| Insurance Expense | $2,245.83 | JE DEPAM0626 — monthly amortization, Progressive policy |
| Equipment Lease Expense | $1,200.00 | Bill LEASE0626 — Superior Truck & Equipment operating lease, Ledwell step-deck |
| Total | $3,445.83 |
Direct expenses classified at source:
| Account | Amount |
|---|---|
| Toll Expense | $39.75 (Bills 104901 + 100208) |
Rig pool:
| Class | Revenue | Rig used? | Operational facts |
|---|---|---|---|
| Fly In:08E62DT | $7,500 | No | Driver flew to Monticello; customer's truck driven back under its own power |
| Truck In:24D53WT | $4,500 | Yes | 2024 Freightliner M2 loaded on Ledwell and hauled |
| Truck In:23F63WT | $2,000 | Yes | 2023 Freightliner M2 loaded on Ledwell and hauled |
| Truck In:21L41WT | $1,750 | Yes | Loaded on Ledwell and hauled |
| Drive In:06G34WT | $1,088 | No | Customer's truck driven under its own power |
| Delivery:20K44WT | $1,000 | Yes | Driven behind the Kenworth + Ledwell on the same delivery run |
| Delivery:16L50WT | $750 | Yes | Loaded on Ledwell, delivered to off-site customer |
| Delivery:16F32WT | $750 | Yes | Loaded on Ledwell, same run as 16L50WT |
| Drive In:16G37WT | $747 | No | Customer's truck driven under its own power |
| Drive In:24L46WT | $712 | No | Customer's truck driven under its own power |
Delivery jobs — decision basis: 16F32WT and 16L50WT were loaded on the Ledwell step-deck for a single delivery run to an off-site customer. 20K44WT was driven behind the rig on the same trip. The rig made this run; all three jobs share in the rig overhead for the period. Rig-assisted deliveries are not the norm at Desert Equipment Transport — in periods where deliveries do not use the rig, they carry no rig overhead.
Revenue weights ($10,750 rig-pool total):
| Class | Revenue | Weight |
|---|---|---|
| Truck In:24D53WT | $4,500 | 41.9% |
| Truck In:23F63WT | $2,000 | 18.6% |
| Truck In:21L41WT | $1,750 | 16.3% |
| Delivery:20K44WT | $1,000 | 9.3% |
| Delivery:16F32WT | $750 | 7.0% |
| Delivery:16L50WT | $750 | 7.0% |
Final splits:
| QB Ref | Account | Total | 24D53WT | 23F63WT | 21L41WT | 20K44WT | 16F32WT | 16L50WT | TxnID |
|---|---|---|---|---|---|---|---|---|---|
| DEPAM0626 | Insurance | $2,245.83 | $940.11 | $417.83 | $365.60 | $208.91 | $156.69 | $156.69 | 8F5-1782321837 |
| ALCLS-LEASE | Equip. Lease | $1,200.00 | $502.33 | $223.26 | $195.35 | $111.62 | $83.72 | $83.72 | 8FD-1782321838 |
| Total | $3,445.83 | $1,442.44 | $641.09 | $560.95 | $320.53 | $240.41 | $240.41 |
Period G&A (carried unclassified):
| Account | Amount |
|---|---|
| Payroll Tax Expense | $417.76 |
| Interest Expense | $444.55 |
| Bank Service Charges | $90.00 |
Script: Z:\autonomous_bookkeeper\am_det_alloc_truckin.py
Active job log¶
Update after every haul closes. Pull actual COGS and compute realized margin.
| Job ref | Date | Transported truck | Service | Miles | Rate/mi | Revenue | Act. COGS | Act. margin |
|---|---|---|---|---|---|---|---|---|
| DRWY0604 | 2026-06-09 | 08E62DT — 2008 Int'l 7000 | Drive-away | 2,500 | $3.00 | $7,500 | $5,212 | 30.5% |
| HAUL0611 | 2026-06-12 | 23F63WT — 2023 Freightliner M2 | Trailer haul | 375 | $5.33 | $2,000 | TBD | TBD |
| HAUL0616 | 2026-06-16 | 24D53WT — 2024 Freightliner M2 | Trailer haul | 870 | $5.17 | $4,500 | TBD | TBD |
Monticello actuals (DRWY0604) — why COGS was higher than estimated
Estimate was ~$3,200; actual was $5,212 because pre-trip airfare and 6-day road costs were underestimated. Diesel alone was $2,042 (yellow sheet — gallons/PPG not captured; backfill when receipts arrive). Long drive-away routes need more conservative cost estimates, particularly for fuel and multi-night hotel stays.
| COGS component | Amount |
|---|---|
| Diesel | $2,041.75 |
| Driver wages (68 hrs × $28) | $1,904.00 |
| Airfare | $248.00 |
| Hotels | $376.00 |
| Rental car | $296.00 |
| Meals / other | $346.42 |
| Total | $5,212.17 |
Invoice posting workflow¶
Stock number first — always
Verify the transported truck's stock number in the Superior Truck & Equipment inventory workbook before writing the description or choosing the QB class. The 08E62DT/15D52TR mix-up on DRWY0604 (2026-06-11) was caught in review; catching it before posting is cheaper.
- Confirm stock number in
G:\STE - Superior Truck & Equipment\A101 - Inventory\Stock Number.xlsx - Confirm make / model / VIN from the inventory record
- Determine service type (drive-away vs trailer haul)
- Calculate loaded miles (Google Maps, point to point)
- Apply rate → preliminary quote; run cost estimate; confirm margin ≥ 30%
- Round to clean number ($250 steps < $3K; $500 steps ≥ $3K)
- Post invoice in Desert Equipment Transport QB:
- Customer:
STE - Superior Truck & Equipment - Ref:
DRWY{MMDD}(drive-away) orHAUL{MMDD}(trailer haul) - Terms: Net 30 (set explicit DueDate via API — customer default is Net 15 and overrides TermsRef)
- Item:
Drive-Away Transport - Class (line level): transported truck's stock number
- Desc:
[Service type]: [Year Make Model] VIN [VIN] | [Origin] to [Destination] | [miles] mi
- Customer:
- Post mirror AP bill in Superior Truck & Equipment QB (vendor = Desert Equipment Transport)
Rate review triggers¶
Review and consider adjusting rates when:
- Actual margin on any job deviates > 10 pts from target → flag immediately
- Diesel moves > $0.50/gal sustained → affects trailer haul COGS significantly
- Driver wage rate changes
- Three jobs of same type completed → enough data for statistical review
- Brandon requests a review
Rate changes require Brandon authorization. Update this page and the SOP (Y:\memory\accounting_manager\sops\DET_transport_billing.md) with VERSION and date.
Diesel price log¶
Actual fuel receipts are filed as PDFs and logged to:
G:\DET - Desert Equipment Transport\Operations\Diesel Price Log\diesel_price_log.csv
On receipt of a diesel PDF: extract date / vendor / city / state / gallons / PPG / total →
append to CSV → file PDF as {date}_{job_ref}_{state}_{vendor_short}.pdf →
update regional PPG table above if 30-day rolling avg has moved > $0.25.
Intercompany pricing — §482 note¶
Desert Equipment Transport bills Superior Truck & Equipment at arm's-length market rates. Both rates (drive-away $3.50/mi, trailer haul $5.00/mi) are supported by Southwest regional carrier benchmarks (United Road, DAS for drive-away; flatbed/step-deck equipment transport for trailer haul). Documentation of commercial carrier comparables should be maintained for each haul (screenshot from a broker or carrier quote at time of service).