Parts billed on r/o but not used...

[Kaju65]

Zep33, I'm a relatively new Parts Manager who didn't receive a whole lot of training so please excuse my naive questions. Can you please explain the 'Monthly Parts/Service policy invoice'? I'm pretty sure I was never taught this one...

[Zep33]

no worries

What do you do with parts the tech's break, top off fluids and other things like that that should be billed to service?

And same with parts you can't find, keys you miscut and other things like that that parts needs to pay for?

Everywhere I've been there's either been a repair order or parts invoice that bills the stuff to service or parts policy/shop supplies at the end of the month when you print the invoice.

[AIIVESINCE85]

We always try to correct the issue when we have returned parts that were billed out. If it turns out that we have a free part, and it's returnable, we do the following:
- Return the part to the MFG for credit.
- Create a parts invoice to an AR account and bill out whatever non-returnable obsolescence we have up to the amount of the credit received.
- Apply the credit invoice to that AR account to balance it out.

If the part isn't returnable, then we will attempt re-selling it for 100% gross as an IO_N sale with no cost (CDK.) If it sits around too long there's always that one pack rat tech who would love to take it home and let it sit in their garage for 15 years.