DealersEdge Professional Forums

I am having major issues with the Office Manager over the 6104 (shop supplies) account. Not my dept. and NOT under my control. We have 12 Techs and a "moderately" busy shop. Supplies are charged as received, including terminals that are out in the shop. 6104 is running about $3000 a month and granted there are products that should be charged to the customer but Service Manager refuses to. As long at it remains under the current condition I REFUSE to take control. Adjustments I have made as far back as 7 years ago has reduced this figure by about 25% to 30% and I really have NO concept if this dollar figure is out of line with the norm or not. You can Private message me here if you do not want to share with the public.
Thanks

We run 5 to 600 per month on stuff charged from parts to service on the shop sheet. We do charge supplies such as brake cleaner, sanding discs etc. to the customer's work order. Nuts bolts & drill bits etc. are charged directly to the shop without markup. I'm not sure what that dollar amount would be, but I do approve the invoices, so I'll guess at 2 to 400 per month. 9 Techs.

Thanks Steve! Yup there is a bunch they refuse to charge to the job, but it would seem to me that that is their issue NOT mine. I think a big chunk can been seen in terminals as some of them like the gold coated airbag ones are quite spendy!!!

Our service dept. charges a "shop supply" on CP RO's after a certain dollar amount (couple hundred??).

It is capped at $25 and has to be around $1K or more to be at $25.

Their bill from me is $2-3K a month and I'm sure they are making a profit on it by charging the shop supply fee on the CP RO's.

CMayne,
We just went thru the same thing with our in-house body shop.
For years, the body shop mgr. was purchasing body shop supplies (nuts, bolts, clips, etc.) for his in-shop inventory.
He too, was recovering his investment on the "shop supplies" charge on RO's. (or so he thought)

Then, the problem floated to the top:

His shop supply acct. (6105) was growing every time he made a purchase and expensed it to acct#6105.
No physical inventory had ever been done at that time.
Yes, they were collecting money, but acct#6105 was never being relieved enough to offset the cost.
Next thing you know, acct#6105 has a $15,000 balance. (someone finally noticed it)
A physical inventory was done, and only $2,500 was actually in the shop.
You know as well as I do, techs grab a handful of clips, go put them on the car, or in their pocket for a side job, or half of them in their tool box for next time.
Not to mention the vendors that charge you for 50 clips and send you 25.
Shop supplies are an EXPENSE of doing business.
If it is intended as a profit center, then the service manager needs to have a process that works, and most don't.
It's the service manager's ball game, not the parts manager's.
RLWOLF

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