by jazdale » Tue Oct 29, 2002 10:37 am
Richard,
I had to stop and think a bit over the idea of charging new car dept (13a). At first, I bought into it, then I thought otherwise.
1. Its an expense out of new car's control. I think it would create bad blood between the departments.
2. What if the rejected warranty work was done on a vehicle not sold by this store.
3. Posting the unrealized profit as an expense to a different department is just wrong. Its kinda like saying we should have made 2 dollars, but since we only made 1.50, I'll charge you for the .50
4. I'm sure the person posting warr rejects to accounting would love to break down each item by parts, service, and potential profit.
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Granted, there are some grey areas, but 95% of the time I think there are definitive reasons for each and every reject. If we took the time to analyze each reject from beginning to end - we could probably show a responsible party what they're doing wrong.
Rob - you out there, looking for your 2 cents.