GM 35% Restock Fee

[olepartsguy]

YOU ARE NOT SELLING THE PART YOU ARE RETURNING THE PART . THIS DOES NOT FALL UNDER SALES LOYALTY.

[scott2112]

The restock fee should go to 68800.

This also where you should put the price difference from a buyout from another dealer as well. If you buy a part from a dealer and GM cost is $1.00 and the dealer charges you 15% over cost, so you pay $1.15, $1.00 goes to 24200 and $0.15 goes to 68800. This keeps your book value correct as you are receipting a part that posts $1.00 to you physical inventory, but you paid $1.15 for it.

That seems like a lot of paperwork. Why not just change your cost when you sell the part on the invoice/repair order and put it all in 242? that still keeps you inventory at the correct level.

You will be dinged on your sales loyalty for changing cost.

They do ding you, however I think its on amounts higher than 15%.

[JeepGuy]

They will not ding you unless you cost it above trade price.

[PartsPlant81]

According to my controller 68700 and 68800 are essentially the same in terms of how it will be shown on your DOC regarding Gross Profit. The separate accounts are more for tracking in the accounting office.
Even GM's Invoice credits account 68700 for the 35% charge on an MR11 return. I just had one today and confirmed it.

[Kaju65]

Even GM's Invoice credits account 68700 for the 35% charge on an MR11 return. I just had one today and confirmed it.

This is what's confusing my office. They see the restock fee on the discount % line and think it's a chargeback for a discount we received.

[JGROSS1978]

They will not ding you unless you cost it above trade price.

Did not know that.
Thanks

[bsnyder723]

According to my controller 68700 and 68800 are essentially the same in terms of how it will be shown on your DOC regarding Gross Profit. The separate accounts are more for tracking in the accounting office.
Even GM's Invoice credits account 68700 for the 35% charge on an MR11 return. I just had one today and confirmed it.

Just change the account from 68700 to whatever account you use for policy work, here it's 6804 for parts. That's what we do here. If you put it 687 and you get paid on gross you take the hit in your pay.

[CADLOU]

I check my sales loyalty everyday and have yet to be dinged on it for that. I get dinged more for bulk oil than anything else.

[olepartsguy]

CADLOU.

DO YOU USE THE BULK OIL PART NUMBER AND THEN PUT A B AT THE END ?
FOR EXAMPLE 88865638B

[stevejm71]

Here is my 2 cents. I run the 35% restock fee to act 687. Yes it does effect our pay as well. Account 688 also effects your pay if you are paid on gross. Whatever we COLLECT in restock fees also gets ran to 687. We try to collect restock fees for anything that is not our fault. It usually does not even out but it helps. I think doing it this way helps to make the counterman more accountable for what they are ordering thus helping keep returns down in the long run. It has worked pretty well for us.