Inventory reconciliation

[Fred Samuelson]

Gentlemen - Ladies - Please make sure you reconcile your parts department numbers with the accounting department numbers every month. Consistency is the name of this game to find out if you are within MY tolerance of 5% (really want 3 or less) or less of the parts managers numbers and the accounting departments numbers. Further, make sure you use your Work In Process (WIP) Parts costs in this reconciliation. The part has been removed from the parts managers numbers, but have not been removed from the accounting numbers for the simple reason the RO has not been posted and closed. This proceedure must be followed every month to make sure the numbers are within a tolerance for moving paper from the parts department to the accounting office.

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Fred Samuelson

[outlawjrj]

well, I've been with my present company over 17 years, and we have always reconciled monthly. How do you "not"? I've been fixed ops director over 16 stores, and don't know how you would "go back" and find a posting mistake, pad or on th GL. It's best to do monthly. You will catch mistakes in the GL posting if the office manager or controller is reconciling the GL to parts statement every month. I have a series of reports that I authored for our company, and one of them is a one page reconciliation sheet.. You need to account for cores, WIP, (parts and Service), pending credits to the GL that you have removed from the pad, etc. email me if you are interested outlawjrj@comcast.net

[dodgeboy]

Great timing for this subject. We have been doing monthly reconciliation for many years now. It became mandatory after we had an inventory write-up three years in a row. Imagine that! Our previous parts manager was in the hole almost every year and for major amounts of money. We changed managers and except for one year in the past 9, we have had some kind of write-up. Alot of it can be accounted for, like the factory sending you more than your ordered, etc..
The owner of our inventory company is a former dealer principal and he said he expected his parts managers to have a write-up every year. But the crux of the story is, now my dealer is uncomfortable with the yearly write up, almost to the point where we are doing reconcilation more than once a month. After each years physical inventory we eventually begin to creep ahead of
accounting. It's driving him nuts, he's driving us nuts! I personally don't see a problem with the situation. And yes, I feel it's honest money!! What would you guys say?

[This message has been edited by dodgeboy (edited 09-10-2004).]

[johnny o]

outlawjrj ... you must do Mike Bowers heart some good when he finds out that you are up at 3:00 am in the morning and what are you doing with your spare time, but reading and posting on the Dealersedge forum. Thats incredible dedication .. all that nasty rain in Florida must be keeping you up.