Work in Process

[PARTS1]

I am a new Service Manager, formerly Parts Mgr, it seems we have bben off by about $2500.00 every month from work in process. Basically techs pay and what we recopued. Does anyone have any ideas for me? Thanks in advance>

[texaslp]

That's a lot. The easiest and most effective to keep up with wip(other than integrated payroll) is to have the acctg office schedule it. It involves some work to set it up and involves a good deal of data entry, but still much, much easier than trying to track down a problem manually. But if that is beyond your control/ability to make happen, take a sampling of ro's and make sure the cost is right. Have the techs received raises that aren't reflected in cost? Then get with the office and have them run a detail of the account and in particular look at payroll charges. Do you have lube guys or other personnel who are not flag techs that perhaps their pay is being coded incorrectly?

[JustBob]

As already stated:
Check all paramaters, tech rates, Etc.
If your DMS has a true integrated techican's payroll (Ro to Paycheck) your accounting department should be able to account for all W.I.P. If it is not integrated you can take your RO sales journals and match the costs RO by RO to your Payroll tech by tech. Time consuming yes but well worth the $2,500 a month. Common culprits are incomplete RO's W/C C/P and Int. Also could be "disapperaing" RO's in the office. The last several months I have seen a significant increase in DP realizing there office procedures have big holes in them.

Since your background is parts think of it this way - you bought $2,500 worth of labor that apparent was not sold - W.I.P is your techs labor setting on a shelf. If a parts inventory was short $30,000 annually I am certain it would be a very big red flag.

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Have a tremendous day
Bob Britting

[nineball]

parts1

i had the same problem three years ago when i took over service,as well as what texaslp,and justbob are saying you can also have your payroll clerk run you a distribution list for wip to see what techs she/he has going to wip,sounds like they could also have someone allocated incorrectly