CP Parts Gross Transfer

[mrjaygraham]

The accounting entry that was made in the past is no longer required.

The parts sales on repair orders are now recorded only in the Parts Department. The gross profit is still split 50-50 between the Mechanical and Parts Departments, but now it’s just a matter of display, not an accounting entry.

Most DSP systems will do this automatically for in house generated statements. However, some DSP’s may ask you for the percentage split between Mechanical and Parts for your in-house statement. If unsure, you will need to check with your DSP to determine how this is handled.

If you are manually keypunching the data, you simply need to enter the sales and cost of sales information in accounts 467 through 478 on page 6 of the TB Edit Application and the transfer amounts on page 4, line 59 will automatically be recorded at a 50-50 split.

[steve@gmdealer]

Way back when, parts would get cost + 25% and service would get the rest. When service would ask me for a discount on behalf of a service customer I was always more than happy to oblige. "Of course" I would say. I was a hero to the manager & consultants who didn't realize that I was still getting cost +25 and they were losing their shirts. I liked that system.

[hoorulez]

Way back when, parts would get cost + 25% and service would get the rest. When service would ask me for a discount on behalf of a service customer I was always more than happy to oblige. "Of course" I would say. I was a hero to the manager & consultants who didn't realize that I was still getting cost +25 and they were losing their shirts. I liked that system.

Those were the days. I remember when I explained the reality to the Service Mgr of the PGT back then. He went a little white and ran straight to the owner to get it changed. Of course the owner was like, "pfft, you didn't know, sorry for your luck, stop giving away my money."

[Richard]

Way back when, parts would get cost + 25% and service would get the rest. When service would ask me for a discount on behalf of a service customer I was always more than happy to oblige. "Of course" I would say. I was a hero to the manager & consultants who didn't realize that I was still getting cost +25 and they were losing their shirts. I liked that system.

Which is exactly why I politely decline in participating in ANY discounts service offers.

[mightytitan9]

I don't understand the whole splitting profit thing.

It's hard enough to make money in the parts department, let alone without service taking any of it. Service can pay a guy $15 and and make themselves $75. We had a job last week where the service department made over $1000 in profit after paying the technician, then changed the prices on my parts to where I made $130 on an replacing an engine because the customer could "only afford $6000"

[brparts]

knowbody in service should ever be allowed to change the price of parts on a service RO. that could not only affect your GP and also your inventory value. the DP should be made aware of this ASAP. i knew a parts manager that lost his job because his inventory was way short. turns out the service manager had access to the parts on RO"s and was doing adjustments after the RO's were paid for. he would reopen them to make the adjustments.

[mightytitan9]

knowbody in service should ever be allowed to change the price of parts on a service RO. that could not only affect your GP and also your inventory value. the DP should be made aware of this ASAP. i knew a parts manager that lost his job because his inventory was way short. turns out the service manager had access to the parts on RO"s and was doing adjustments after the RO's were paid for. he would reopen them to make the adjustments.

This has been a work in progress for over a year. Service Manager and Writers would change pricing and remove items from our ROs without letting us know anything. About a year ago I found an "items removed from ROs" report on Autosoft and it tells me which computer removed the item. If it's not one of our 3 parts department computers, the part gets charged to the service department.

Last summer, we had half a dozen ROs closed with "no work performed" for the under hood fire recall. I went to bill one out and all of a sudden I had 8 valve covers "in stock". I knew I didn't really have 8, so I ran these reports and found out what had happened. We had done the recall but never closed them, they were too old to run so they took them off the tickets and labeled the ROs "No work performed". I billed them and the gaskets to the shop. It was funny over the next month to see the vehicles come in for the recall that already had new covers on them.

The problem is the previous Parts Manager let Service dictate Parts Pricing and changes stuff and removing from ROs etc. When I took over, they would come in and say "the customer didn't want to pay that much so we took trade", a dozen times after telling them they had no power to do such a thing, they stopped doing that and if they customer request anything they have to come get permission. In which I usually say if service lowers labor a certain amount I will lower parts.

[Richard]

I once told the owner, why do we take a chest of gold and put it on a sinking ship every month? Taking money from a healthy department just to add it to the red ink of a miss-run department is just stupid IMHO, YMMV, etc..