Inventory issues.

[brparts]

who has access to your parts invoicing and ro screens. i worked at a dealership where the service mgr was adjusting parts prices with out my knowledge. i came up $15,000 short. when i found out what he was doing, i had his access removed and he had a fit. the dp backed me up on this and put him on a short leash. he should have been fired.

[STRAUBMAN]

Ok, I've checked everything. I did find some things that needed adjusted. I am now at a $13,500 difference(shortage)3.3%. My final variance(what I showed and what I actually counted) was below $1000. I know thieft would be brought up again so I went back through every monthly summary and calculated my + - adjustments. $1,200. This pretty much proves no thieft. As I stated before our last inventory was in Jnauary. Every month I do a reconciliation. I know it's not perfect but it gives me a snapshot. I have watched it creep up every month. Consistantly...
As for posting. There are a few people for the different manufacturers. I'm looking to get that changed. They are not to post anything unless I have coded and initialed. I do look at 0504 regularly. Nothing jumps out at me. We book the appreciation monthly. It is a debit to accounting's 242 and a credit to a dummy account for scrapping parts later. I do not use any bulk programs. Meeting is tomorrow.

[smalltownpartsguy]

Ok, I don't get your last sentence. App/Dep
should be offsetting parts & office. The credit to a dummy acct sounds like doubling up ??

[STRAUBMAN]

We debit 242. Therefore you would need a credit to offset. Correct? You know I'm just not sure now. Maybe I should look a little closer at this. With appreciation my inventory goes up. Accounting needs to adjust 242 which I beliave is a debit. Then we credit another account to offseet and balance. Mike, any thoughts?

[STRAUBMAN]

Well the meeting didn't go well. "Find It" was pretty much the theme. The Controller, Office Manager and myself came up with a plan. Since we sell so many parts in our Body shop and probably half of them are non oe parts(manual entry and pricing). They feel that my counterpersons might not be billing everything therefore creating the difference. I'm sure mistakes are made but I don't believe $1,200 a month. We are going through every outside purchase for a three month period and pulling the invoices and checking against RO's. God help me , it's going to be a long week. I will check but I believe the factory invoices are correct. Source overides do scare me a bit as I have so many of them with the different franchises and if they are not set up correctly that could be a problem too. Hope we find something soon.

[possum]

I don't know which is worse...

We did ours last week, and my 2 smaller stores were OK, around 6-7K over for the year. But my big store was over 50K.

We're going thru the same list of problems to find out why.

I'm sure it can be blamed on RIM!

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Certified, RIeM Compliant, Thoroughly Enhanced GM Parts Manager

[Mike]

In the case of an inventory appreciation you would book the amount to 24200 as a debit and offset it with a credit to 68800.

[Silverbulletday]

Going through the same thing here myself.

We're on ReyRey. In my parts inventory I can account for all factory invoices and non-factory invoices posting to correct account at correct amounts. No invoices get posted to my inventory account without my initials or approval. During the week leading up to month-end if necessary I spend time going over outstanding orders in the event that something did not get posted properly. Plus/Minus adjustments are handled on a counter ticket for tracking purposes, and that counter ticket is closed with a balance of zero. IMO, our processes in place are solid.

One thing I did find after poking my nose in where it may or may not belong: Journal entries for repair orders in the RO source in my inventory. No one can give me a straight answer as to why someone would need to do this, but I find journal entries on repair orders that look like some sort of adjustment, but I cannot be really sure. Making matters worse is that our business office is 250 miles away at another dealership (gotta love corporate ownership). I think that someone is making journal entries and probably forgetting to make a reversal to balance their entry, thereby inflating the inventory value on the GL.

I'm meeting with the controller today so we'll see what he has to say.

[partsman103]

We had a similar delima but when investigated, fell in the lap of the accounting dept.

When sales would order a new truck, they also ordered a "Chrome Package" ie-20" wheels w/tires, step bars, bed rails, door handles, chrome mirror covers and fule door..etc..etc.. and accounting was placing those parts in our inventory when invoiced from gm.
These items were supoosed to be billed to the vehicle cost.
Just a thought.

[Vince Lyons]

Alomst always a billing error in accounting when it's dollars not parts.

I've found vehicle invoices, Service Supplies and stationary billed to parts inventory accounts.

Seriously, you have to watch accounting like a hawk.



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When in doubt, charge it out !
I'll be right back with it = Bill it to the Shop Ticket
(Enter any name) will bring you the RO = Charge it to my Personal AR

Me? Well, it's not that I'm old. However The Boeing 707, rock and roll and the Small Block Chevy share my birthday... So, I'm middle age of I live to be 104.