Become a VIP Member and Receive Access to This Recording - Reserved for Members Only.
Visit https://vip.dealersedge.com/ For More Information
Presenter: Rob Campbell
Air Date: Thursday May 31 at 1pm Eastern/ Noon Central/ 11am Mountain/ 10am Pacific
Program Length: 60 minutes
How to make the Parts DMS inventory Jive with the General Ledger!
It's no secret that when it comes to the Parts Department, the dealership runs two sets of books.
One set is kept and controlled by the Parts Manager and is geared toward inventory management… keeping the right parts on the shelves to satisfy the Service Department's needs and avoiding obsolescence. It's mostly about the physical parts themselves.
The other set of books is kept and controlled by Accounting. The General Ledger is the financial blueprint for the enterprise, but in this instance it is primarily concerned with the dollar value of the parts department's assets and liabilities. It is mostly about the dollar value of the investment.
Problem: On the surface they seldom agree.
And sometimes, the imbalance can point to very real problems and potential losses. Therefore, like balancing your checkbook, you need to isolate the differences and reconcile regularly.
This workshop is an in-depth look at strategies to help balance the 2 sets of books, and/or identify problems needing solutions.
You will learn:
- Primary causes for inventory valuation disputes between Parts and Accounting
- Strategies for identifying and "balancing" reasonable and routine differences
- How the 2 sets of books can help hide serious problems and potential losses
- Solutions for inventory shortages and overages.
- How Parts & Accounting can work together to balance the 2 sets of books