Over on the GL

[yougottago]

I wondering what ideas you guys have, I'm 9000.00 over the GL from my system. I wondering where I should be digging in deeper to find out why this is. Any suggestions?

[CMayne]

Are you GM? Biggest mistake I've made was on freon. Price update is on 30 (or 10) lb units. Qty on hand was changed to ounces. UMMMM Whoops!!!! Big dollar difference.

[PartsPlant81]

When was your last physical inventory? Sounds like it could be an issue in accounting. Are your parts being posted to the correct account #?

[possum]

Also make sure any variable purchase discounts go to 687/688, not 242

[yougottago]

Freon is ok. I'm a Nissan dealer. Last inventory was last Nov and I was up by like 2000.00. Next Inventory is in DEC. I was definitely thinking this is a accounting issue but I'm not sure where to start to help her with the issue.

[tmundal]

How many different sources do you have, and how do they compare individually with the GL? Are things like oil and tires separated, and if so how do those compare with what accounting has?

[partsmanager140]

I assume that this is the first month since last November that you have had this much of a descrepency in your end of month reconcilation. Did you account for all of your returns (manufacturer annuals, cores, damages etc) that have been removed from the inventory pad but haven't been credited yet? If that is done, the next one is a posting error in the accounting office, either in an enty to the inventory account or perhaps an adjustment or inventory appreciation or depreciation that was posted in reverse.
Good luck

[FixedManager]

I have seven pages, single spaced, of practices or issues that contribute to this. The biggest ones are changing cost, not properly accounting for purchase discounts or costs, appreciation/depreciation, and not making GL entries to compensate for bin and GOG adjustments.

Have you been doing monthly reconciliations with your Controller? That's how you find errors generated by accounting but realistically it's a Parts department issue. The cranky old parts managers always blame accounting as their mistakes when made are very large. It's the small mistakes made repeatedly in the Parts department that are the true cause.

Consider moving up the date of the P.I. if you think there's a problem.

[Zep33]

We found an issue a few years ago with freight being put into account 242. Accounting was just dumping the invoice total into 242 without breaking it down

There was also a pretty expensive GM tool earlier this year that was billed to us as an actual part.

[bigGman]

I do a monthly reconciliation. It seemed to be up and down for the first few months I worked here. By accident I was looking for an invoice from a vendor and while my accounts payable person was looking through her folders I spotted some bulk oil invoices that were not stamped posted. I asked her about them. She said "I never post those until I get the statement in the mail because they are always a few cents off from the invoice."
It turned out that every month when she said "everything is posted, do your monthly inventory" Everything was not posted. Every monthly and every yearly inventory for the last 7 years was incorrect because she didn't understand what it meant in accounting to have EVERYTHING posted when you say everything is posted.
Yes she stills works here but now every month I take a good look at purchase orders that are authorized by parts but not updated to accounting before totaling the reconciliation. I find a few things every month that she still has stashed away and account for those.