CSO vs DRO

[bluepart]

See if this is correct. MR01 is used against Return Reserve regardless of date shipped ,but the part had to be ordered on a CSO order. MR11 is charged a 35% re-stock fee and is not charged against Return Reserves and has to be returned within 1 Year of purchase , but also has to have been ordered on a CSO order. If I order my customer special orders on a DRO order, that could take away any chance of returning these parts if for whatever reason they come back on me . If I order CSO too much, it throws PASE figures in the toilet. Add to it there is virtually no discounts or reserve left to work with. No tools left to work with.

[TimK]

If I order CSO too much, it throws PASE figures in the toilet.

How?

[PartScott]

I believe the CSO/DRO mix penalty only applies if you are NOT on PASE terms.

[bluepart]

Correct, if not on PASE terms, if you go over 30% CSO on Total Monthly Purchases , you get hit with 10% surcharges on CSO orders the next month. It is not that hard to dip below 85% Sales Loyalty and go off PASE terms if the Service Dept sells a high dollar engine , etc that is the only option for some of these customers.

[PartScott]

Correct, if not on PASE terms, if you go over 30% CSO on Total Monthly Purchases , you get hit with 10% surcharges on CSO orders the next month. It is not that hard to dip below 85% Sales Loyalty and go off PASE terms if the Service Dept sells a high dollar engine , etc that is the only option for some of these customers.

Here, when we encounter situations like that, we bill the parts in the sublet section of the RO so that it isn't picked up by GM as a hit against purchase loyalty. We have a code entered in the system so that all accounting is correct when we do it and it has worked well for us.

[gmpartsvet]

You can return any good gm part that has not been removed over 12 months ago regardless of how it was ordered on an MR01 return. However, you are better off to use the MR11 if you did order it CSO within the last year. If you return a $100 part using the MR11, you will be charged 35% so you will receive a $65 credit. If you return the same part using MR01, you will receive a credit for $100, but you will lose the 75% cash conversion on the unused return reserve, so in effect you only net out at a $25 credit, or $40 less that you would have received using the MR11. I have even returned parts that I have not purchased from GM on an MR01.

[Kaju65]

Are we allowed to return DRO parts? I've tried searching but can't find any info on this.

[Whiner]

Here, when we encounter situations like that, we bill the parts in the sublet section of the RO so that it isn't picked up by GM as a hit against purchase loyalty. We have a code entered in the system so that all accounting is correct when we do it and it has worked well for us.

You have got to be careful with this scenario. GM clearly spells this out as a violation of the PASE program. Do not get caught doing this.