Physical Inventory and Prepaid Parts

[MBZParts Manager]

CDK dealer here. Physical Inventory is in a couple of weeks. What is the correct way to account for Prepaid parts during the inventory?

I was taught that prepaid parts received show an on-hand quantity which would be relieved when the PPD order is filled at the time of customer pick-up. These on-hand parts should be counted so as to not create a variance during PI. But with prepaid parts NOT received, the total COST of these parts needs to be calculated for reconciliation with the GL. The dealer I'm at now has in the past included all prepaid parts (not just those not received) in their calculation for GL reconciliation. This seems to me to be incorrect, but I can't exactly articulate why.

Can anyone walk me step-by-step through this so I can speak to the controller and GM when they ask me why?

Thanks!

[Stevenspeaking]

There is a function PIC that lists the steps to prepare for inventory. There should be info there.

Send me an email - listed below. I can send you PIC and an old reconciliation guide.