Parts Inventory – Recording Values On Your Reconciliation

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 …

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Parts Inventory – Supporting Documentation

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 – …

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Parts Inventory – How Often; Part 3

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 …

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Parts Inventory – How Often; Part 2

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 …

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Parts Inventory – How Often

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 …

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DMS Parts Inventory – Maybe Considered The 3rd Parts Inventory?

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 …

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Parts Inventory – Really, There Are Two

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 …

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Physical Inventory – Concrete Doesn’t Grow Parts

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. …

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No-Bin Locations = Big Problem

Having a few parts on-hand without a bin location throughout the day isn’t a problem – as paperwork gets posted, and handled. But for dealerships where there are more than a few parts without bin locations, or that have a default bin location (the worst), this spells trouble. After each parts inventory shipment, a No-Bin …

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Why Negative On-Hand Quantities Are A Bad Sign

Negative on-hand parts inventory quantities that are found on the parts manager’s reports, or in the DMS, are a sign of parts management trouble – if there are more than a few. These negative quantities get cleaned up throughout the day, as the paperwork gets posted. If there are more then a few in your …

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