PartsPlant81 wrote:Not sure what your accounting situation is but always better to take the loss in 24200 over 68700 if you have the option.
Kaju65 wrote:So clearly it's a restocking fee. My business office is saying it's a chargeback for a discount so it should be applied to our 687 account.
Ichabod Farquar wrote:PartsPlant81 wrote:Not sure what your accounting situation is but always better to take the loss in 24200 over 68700 if you have the option.
If you take the 35% out of 24200, isn't your inventory "off" when you calculate your physical inventory value? Depending on how much CSO/MR11 returns you do this could lead to an inventory value problem.
68700 or even 68800, in my opinion is a better choice - but it is a dealer choice and no two dealers are the same.
GM STANDARD ACCOUNTING MANUAL - ACCOUNT DEFINITIONS / USES
687 Purchase Allowances
Cost of Sales
Fixed Operations
Cost of Sales Synopsis
Account 687 is established to record the cash or credit from the manufacturer for ordering and/or selling Parts and Accessories under regular or promotional programs.
688 Adjustment – Parts and Accessories Inventory
Cost of Sales
Fixed Operations
Cost of Sales Synopsis
Account 688 is established to record the amount of adjustment required to reconcile the value of inventory on hand recorded in Account 242, Parts & Accessories (Inventory).
Z23T wrote:The restock fee should go to 68800.
This also where you should put the price difference from a buyout from another dealer as well. If you buy a part from a dealer and GM cost is $1.00 and the dealer charges you 15% over cost, so you pay $1.15, $1.00 goes to 24200 and $0.15 goes to 68800. This keeps your book value correct as you are receipting a part that posts $1.00 to you physical inventory, but you paid $1.15 for it.
CADLOU wrote:Z23T wrote:The restock fee should go to 68800.
This also where you should put the price difference from a buyout from another dealer as well. If you buy a part from a dealer and GM cost is $1.00 and the dealer charges you 15% over cost, so you pay $1.15, $1.00 goes to 24200 and $0.15 goes to 68800. This keeps your book value correct as you are receipting a part that posts $1.00 to you physical inventory, but you paid $1.15 for it.
That seems like a lot of paperwork. Why not just change your cost when you sell the part on the invoice/repair order and put it all in 242? that still keeps you inventory at the correct level.
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