Emergency purchase posting...

[dave1959]

Do you post at acquisition cost or dealer cost and the difference to purchase discount acct.??
I recently took over a dual line parts department and parts are being posted both ways.( one manuf one way and the other the other way, Not a mix.)
Parts sales are being relieved at dealer cost with no accounting for the difference.
I have never posted at acquisition cost. They have apparently been doing this for years so I am reluctant to change without more info.

feedback please..

[TimK]

Post at dealer cost.

Acquisition cost should be reflected on the RO or counter ticket.

[MSInventory]

I would post into accounting at dealer net, post the difference into purchase discounts (either + or -).
When selling on the RO or counter invoice, stick with how you posted into accounting, dealer net.

[PartsPlant81]

Customer pay or Internal: Actual cost of part posted to 24200; cost difference posted to 68700. Do not change part cost on RO or invoice.

Warranty: Actual cost of part posted to 24200; cost difference posted to 24600. Do not change part cost on RO. Depending on DMS cost difference will need to be billed in sublet screen on RO. In Auto/Mate we go to Misc and put it to Parts Expedite to get the difference reimbursed by GM.

[jdpetey]

On Customer Pay, Internal or Extended Warranty, or anything non warranty, we input acquisition cost on RO or Counter Invoice. Yes, it reflects lower GP per RO, but, due to the Parts Transfer, I would rather not diminish the minimal 687 amounts we receive on the back end. On the Counter Invoices, you're simply reflecting a lower profit.
The Acct. Dept puts the Acquisition amount into 242 account as reflected on the purchase invoice and you have relieved that same amount on the RO or Counter Slip.

On Warranty RO's, naturally cost can't be changed. We have added a Generic Part Number OP (Outside Purchase) and charge out the cost difference on the RO with the Cost and Sale equal to the difference in Dealer Cost and Acquisition value.

Example: Dealer Cost = $100.00, Acquisition Cost =$110.00. Charge out part with cost=$100.00. Charge out OP with a Cost & Sale=$10.00. The $110.00 is entered into 242, Warranty reimburses $100.00 Cost Value plus Warranty Markup. Warranty Administrator adds Labor OP (I don't remember #) and inputs remaining $10.00 in cost that is also reimbursed. 242 Cost now covered.

[dave1959]

Thanks for all the input... I am aware of the "correct" way of posting, (At cost and the difference to Purchase discount)this the way I have was taught and have been doing for better part of thirty years.

The root of my original question is what are the accounting ramifications of doing it the "wrong" way... My perception is that it would not change the net just how we get there....

Am I wrong...?? please explain..

[FixedManager]

Top Three

1) Imbalance created between the Parts and GL values.
2) Commission paid on inaccurate profit and cost numbers
3) Bad information on reports will yield bad decisions