Scrapping or Not

[FixedManager]

Why are so many Parts Managers not scrapping on a regular basis? It seems that every parts department I have been in has a corner, out-building, or a source dedicated to damaged or otherwise non-returnable items. Ladies and gentlemen please share your philosophy or process on this topic, I'd love to hear them all. I just became involved in a dealership that has an outrageous problem with this.

[cville1987]

We don't because I can't get the office to set up an account that won't affect profit, so any scrap would go directly against my gross for the month. For a atore that can barely squeeze off 35k, I can't afford to take a 2-3k hit to get rid of crap. I just do my best to take the hit at inventory and write it off in the 13th month.

[CMayne]

Fixed; Talk to your DP and see where his tax situation is, IE: can he do a write off? Rather than scraping do a "donation" to the local High School or College auto shop. Completely tax deductible and most school shops like to have some of it for the students to tear apart. Just let the school know they have to take it all and throw away what they do not want. Works great for me!

[FixedManager]

CMayne, it is good to see you have a plan in place to reduce your inventory problems. I assume you're creating a parts invoice for each item and giving a copy to your accountant to satisfy the IRS reporting requirements?

[CMayne]

Invoiced out at cost with a header showing no charge donation to Yadda Yadda School District and the whole thing flys like it had wings.