DealersEdge Professional Forums

how many of you guys debit 687 acct. on parts purchased from other dealers?
we currently change cost to what the other dealer sold it for.iam being told we should leave cost at cost and debit 687 acct. the diff.

I change the cost unless its warranty. Its all the same money if you change it or debit 687 I would think.

Actual cost of the part gets coded to 24200
Cost difference goes to 68700 on customer pay and internal.
Cost difference goes to 24600 on warranty (charged out on a misc. sublet line on the repair order as net pickup so it gets reimbursed on warranty claim.)

PartsPlant81 wrote:Cost difference goes to 24600 on warranty (charged out on a misc. sublet line on the repair order as net pickup so it gets reimbursed on warranty claim.)

We charge an "NPN" line for reimbursement on warranty tickets so that the money lands in the parts department and not the service gross. Zero cost and the entered sale price is the difference between cost and purchase price of the part.

cost shouldn't be zero though if it wasn't zero. That will make your GL differ from actual

So if actual cost is $10 and you paid $12.50, you would leave cost at $10 when billing it out and put the $2.50 on another line but cost and sale both need to be $2.50 to keep accounting correct since you can't mark up the difference for any profit

Zep33 wrote:cost shouldn't be zero though if it wasn't zero. That will make your GL differ from actual

So if actual cost is $10 and you paid $12.50, you would leave cost at $10 when billing it out and put the $2.50 on another line but cost and sale both need to be $2.50 to keep accounting correct since you can't mark up the difference for any profit

Cost is $10 so I put $10 to 242.
I paid $12.50 so I put $2.50 to 688.
Part line for part get billed at $10 cost and $14 sale (warranty with 40% mark-up).
Additional part line for the acquisition fee gets billed at $0 cost and $2.50 sale to offset the hit to 688.

Gotcha - didn't realize you were putting it to 688

Yeah, sorry...I didn't clarify that in my first post.

lakefect wrote:how many of you guys debit 687 acct. on parts purchased from other dealers?
we currently change cost to what the other dealer sold it for.iam being told we should leave cost at cost and debit 687 acct. the diff.

We do not.

We change the cost (unless warranty-cost stays at GM cost and then we submit for the difference).

To answer the OP's question, we do not change the cost on the ticket. We apply the difference to 688 regardless and then adjust the selling price to compensate the difference if customer pay/internal or handle it as stated above if warranty.

Question for those of you that change cost...do those parts show up in your unrecognized sales for failing the price filter on your sales loyalty report?