Gerry Laughlin wrote:My points are: If you were doing inventory each year you theoretically would have had a $1500 shortage each year, which would be within acceptable limits. Secondly, what system are you on? Since your tires are off so badly, I would suspect that your tires are coming into your inventory in account 24300, but not being relieved properly. My suspicion is that the tires that are not currently on your inventory are 1) added to the system to the default source (24200), 2) ordered by your tire counterman, 3) then sold on the repair order 3) later the tires are receipted, the source is changed to whatever your tire source is that relieves 24300, and it is sent up to the office. This chain of events would cause exactly what you have going on. You need to make sure that they are in your "tire source" BEFORE they are sold. In CDK the way to do that is to make sure PMU is set up to add them to the correct source the minute they are added to the system (source 8 is what the price tape wants to put them to).
As far as LIFO goes, when you buy a part for $100 dollars, then run the price tape update, and the part goes up to $110 you would end up with $10 in LIFO adjustment. This $10 can hide issues in your store if you don't account for it. Our controller takes the amount of the LIFO adjustment each month and adjusts our inventory for the variance.
It's kind of important to know how your store handles it (by the way, if your store handles it differently, it's not necessarily right or wrong, just different).
Thanks,
Gerry
We currently using CDK
I think I know what you're talking about now. I take that in the last 5 years, each year we've lost $1500. Not sure what's the limit but I do believe the last time inventory it was really bad.
Our tires source supposed to be in 243 and I do agree that we (my part-counters and I) could make mistake when we receive them.
1. Usually if the tires aren't not in our system, we did not add them. We just billed them
2. When the tires are in our system, most of the time, we bill the tires before we receive them. Definitely the mistake we take
3. Those tire which aren't in our system, we just mark down 24200 on the paper and send it to the office.
4. I never even know there's PMU. I should check this out Monday and figure it out.
5. LIFO ... does it have anything to do with our menu RAD? (Appreciation/Depreciation)
One of the question, superseded parts. Will these take effect too? Because prior to inventory, we found out so many old part number we have change to new number. So I did the supersession on those.
I'll let you know how this end in mid of the week.
This really understands me a lot. Man I wish I could just contact you about all these.
Millions thanks Gerry!!