Parts pulling from wrong account

[joe r]

A few months after inventory the accounting office shows parts approximately $30,000 over on my Chrysler inventory and the same amount short on my Mazda inventory. We have
Rey & Rey ERA. This has happened in the past and R&R tells us everything is set up correctly.

I know other dealers who have had this problem but they just adjust at inventory.

Any ideas what causes this and how to fix?

Joe R

------------------

[Chuck Hartle]

Hi Joe,

This I can help you with. I wrote an article on this several months ago. There are two programs that can affect this problem. They are programs
2571
3636

If you look at either one of these programs, you should go into the sale type in 2571 and the labor type in 3636 and look for SOURCE OVERRIDES. I am assuming that Chrysler is your primary setup. You will see the Chrysler Parts Sales Accounts and Cost of Sale Accounts. For your Mazda sources, you will need to check the source override to see it they are indeed input with the Mazda account numbers to properly debit and credit the right asset and sale accounts.

This is very typical if the accounting department is using a single accounting setup. This can be verified by looking at your 2322 setups for both Mazda and Chrysler makes. If there is a separate acccounting make for Mazda, then you should check both 2571 and 3636 to make sure that sale and debit accounts are correct.

If you need any more information, please give me a call at (800) 825-7562.

Chuck Hartle'
PartsEdge

[petepuma01]

To add to what Chuck stated:

In 2571 (parts) and 3636 (service) (0870 and 0869 in accounting), you will need to set up your Mazda sources as source overrides on the Chrysler journals and vice versa for the Mazda journals.

For example, on the CHW parts journal, type in your Mazda source(s)in the source override screen and then the appropriate wholesale sale account. Repeat this for all journals (parts and service), ensuring you enter the correct sale account for the journal.

Why do you need to do this? When you make an invoice in 2525, the first part number determines what sales journal the system will use for the entire invoice, so if you type in a Chrysler part first, all parts on that invoice will use the CHW (or whatever) sales journal, including the Mazda parts.

By having the source overrides set up on each journal, the system will override the sale account (and also the inventory account since it is linked to the sale account in 0864) when it sees a part from a certain journal, thereby crediting/relieving the proper accounts.

If you bill out tires or oil as part numbers, you should have a similar setup (since they usually have a different inventory account than normal parts inventory).

Chuck mentioned 2322 to see what accounting make is being used (Be sure CH is set to CH and MZ is set to MZ (or whatever your accounting make codes are)). In service, you should also check 3622 and 3624 (for each make code) for similar setups.