Reconciling Tire Inventory

Reconciling Tire Inventory

Postby Fixed Ops Mgr » Fri Nov 12, 2021 2:24 am

I am trying to figure out a problem with our tire inventory account as it pertains to my physical tire inventory on hand quantity vs what is showing in the accounting office GL. Our tire inventory value account #243 keeps on increasing higher and higher month after month in accounting however I am not purchasing more and more tires for in stock every month. From my view as parts manager, it seems like something in accounting is not reconciling or balancing out correctly but I am unable to figure out what may be happening and why? I don't believe that the accounting office is reconciling the tire account #243 on a regular basis and I think this may be a problem but I cannot make any headway with the office to help get this figured out.
Can anyone verify that the tire inventory account needs to be reconciled to be accurate and how is this done? Does the tire account #243 work differently than the #242 parts account as it pertains to the GM financial statement accounts? I have looked to see how our accounts are setup and we have a cost of sale account #690 and a sale account #490 where the debits and credits post when a repair order with tires on it closes and our tire inventory account is #243
In summary if I see debits and credits coming into the 490 and 690 accounts as we sell the tires, then why does our tire inventory account 243 value keep growing and growing? The value of 243 should not keep increasing every month and never decreasing or staying the same. I have verified that all of our tires are being costed properly and also verified that we are being billed correctly from GM. I also verified that there is not a theft problem happening either.
Any thoughts or suggestions would be greatly appreciated if anyone could reach out or advise me on this problem.
Fixed Ops Mgr
 
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