Crystal NicholsonPart 1: After a physical inventory count, it’s imperative that you have listed out all the numbers possible that effect both Parts Physical and Accounting Inventories. Here is a list of the most common (but not limited to) “Parts Dept Values” from Parts side; Value of Physical Inventory (From Parts Managers Report) Value of Outstanding …
It happens sometimes, where Physical Parts Inventory counts vs. Accounting (known as Inventory Reconciliation) doesn’t line up. The first step is for the parts manager to go back, get all his documents together, review line by line, and re-total his numbers. If the problem exists still where Parts Physical and Accounting still don’t line up, …
The best way to record and submit an inventory reconciliation, after a physical parts inventory count, is to have each number you need to gather from a source (a report, a vendor, etc.) itemized on its own line, within the reconciliation. That way, if there is a problem, you can match the documentation to the …
When doing a physical parts inventory count, ensure to record and keep every single document, which you extracted a number, including screen prints where you can’t get a printed copy. The best Parts Managers have their ducks in a row. They have documentation to support every number, and every line on an inventory reconciliation – …
Taking it a step further…the most progressive dealers are doing parts inventory on a perpetual, and daily basis, where small bit size sections are counted daily by the entire parts staff. A good back stop is not only to do it monthly, but to do it annually on top of that. It’s not a Parts …
More progressive dealers and Parts Managers not only count parts inventory annually, but also, they do Parts Inventory Reconciliation Monthly just after the month rolls over. The Inventory Reconciliation is no different than an annual Physical Parts Inventory Reconciliation, except the parts are not physically counted just before hand. Dealers who are this progressive are …
Parts Inventory needs to be counted annually…at a bare minimum. Typically, you’d want to count it just before your year-end, after a physical inventory count. You’ll need to do Inventory Reconciliation, where Parts Inventory is itemized line by line (Dollars On-Hand, Work In Process, etc), and then matched next to Accounting Parts Inventory line by …
In the last post we talked about how there’s two parts inventories; Physical and Accounting. Another inventory that exists, and needs to match your physical counts, is the DMS parts inventory. Yes, DMS parts inventory “showing” reflects the physical inventory, but still yet, you need to match DMS parts inventory AND physical inventory together, before …
It’s Year-End and most all of you have just finished off physical inventory and reconciliation. An easy way to think about the reconciliation of Accounting, and physical Parts Inventory, is that there are two parts inventories. One, physically, in the Parts Department, and another in Accounting. If you think about the physical and the virtual …
During physical inventory & reconciliation each year (each month if you have a rock star parts manager), we match up parts inventory value vs accounting. Some dealers will incur losses, and some will find they have GROWN parts inventory. If parts inventory has any amount of surplus inventory dollars vs accounting, this is a problem. …