Quantcast
Jump to content


Keeping up with Accounts Payable (Parts)


Recommended Posts

Hey all,

 

Looking for some ideas on how everyone is managing their parts charge accounts. Specifically, how are you tracking your receivables and returns? Every order we make with our supplier comes with one page minimum, not counting if the part has a core charge, which is often times another page. We get a parts bill once every 2 weeks, when this comes we send back all of our returns for credit. My main concern is making sure we are getting all the credits for our returns/defects/cores. Our parts house leaves us a return book so that our service writer can fill out the slip as the parts are placed on our return shelf that way we know for sure they are getting written up correctly and we can make sure that a new part return isn't only getting returned as a core.

 

We are getting hundreds of slips of paper every 2 weeks and it is difficult to manage (this is just from our main supplier). When the invoice comes, we have RO #'s as our PO but even this doesn't help with returns because if there is an RO # it doesn't indicate if we received the wrong part and had to return it or if the customer calls and cancels the repair etc. I am just looking for a better way to track the bill that way when the invoice comes in I am not just paying it but instead comparing it with my totals and ensuring they match.

 

I know some shops that have someone who manages just their parts tickets full time but my shop is not set up that way and currently this is not a possibility.

 

Any ideas?

Link to comment
Share on other sites

  • 3 weeks later...
  • 1 month later...

We had a problem where the parts drivers forget the return slip book. So a part gets billed and we have the slip. Then we return it and there's no slip. They forget to issue a credit. My wife assumes the part that didn't get billed or returned is inventory or a consumable when she checks the monthly invoice summary. No way to account for this type of nonsense. Now the rule is no return book no returned part , come back with it .

 

As far as accuracy how many overcharges do you guys get ? Besides the returns the parts stores have been 100% the last few years. Almost seems like a waste of time to spend hours double checking their work.

Edited by alfredauto
Link to comment
Share on other sites

I have a pile of invoices and return slips that I go through and check against the bill my parts supplier sends me. We deal mostly with Eastern Auto Parts here (Bumper to Bumper) and I gotta tell you, in 5 years that I have been checking their bills I may have found 1 or 2 mistakes. They have good systems in place and me checking the bill every two weeks has worked great for me.

Link to comment
Share on other sites

I've developed a shop parts "return/core" form. it is, simply has the vendor, part number, date, type of return..core, new, warranty etc. all in columns. If the runner forgets the book or the supplier is temporarily out of those return books, Use the form completed with the drivers name & signature. Then you can do your returns when you want to, then match the credit invoice to these return forms. Its quickly apparent if they balance or if a part was returned, but no credit issued. You can not leave your buying power laying around in the form of returns. I recommend the PO enforcement Joe mentions, and your PO# to the parts store should be your invoice number, so even months from now you can track and investigate easily.Everything in Joes post is spot on. I recommend every bit of that, and once it is the new normal, its easily to administer. You would be surprised how many unmonitored returns disappear into the abyss.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Have you checked out Joe's Latest Blog?

         5 comments
      I recently spoke with a friend of mine who owns a large general repair shop in the Midwest. His father founded the business in 1975. He was telling me that although he’s busy, he’s also very frustrated. When I probed him more about his frustrations, he said that it’s hard to find qualified technicians. My friend employs four technicians and is looking to hire two more. I then asked him, “How long does a technician last working for you.” He looked puzzled and replied, “I never really thought about that, but I can tell that except for one tech, most technicians don’t last working for me longer than a few years.”
      Judging from personal experience as a shop owner and from what I know about the auto repair industry, I can tell you that other than a few exceptions, the turnover rate for technicians in our industry is too high. This makes me think, do we have a technician shortage or a retention problem? Have we done the best we can over the decades to provide great pay plans, benefits packages, great work environments, and the right culture to ensure that the techs we have stay with us?
      Finding and hiring qualified automotive technicians is not a new phenomenon. This problem has been around for as long as I can remember. While we do need to attract people to our industry and provide the necessary training and mentorship, we also need to focus on retention. Having a revolving door and needing to hire techs every few years or so costs your company money. Big money! And that revolving door may be a sign of an even bigger issue: poor leadership, and poor employee management skills.
      Here’s one more thing to consider, for the most part, technicians don’t leave one job to start a new career, they leave one shop as a technician to become a technician at another shop. The reasons why they leave can be debated, but there is one fact that we cannot deny, people don’t quit the company they work for, they usually leave because of the boss or manager they work for.
      Put yourselves in the shoes of your employees. Do you have a workplace that communicates, “We appreciate you and want you to stay!”
  • Similar Topics

    • By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By carmcapriotto
      Welcome to this episode of "Business by the Numbers," where we dive deep into the often controversial topic of tax fairness. Join Hunt, as he explores if the wealthiest among us are really shouldering their fair share of the tax burden.
      • Defining 'Rich': How income levels and perceptions of wealth vary across different regions and impact tax contributions.
      • The Progressive Tax System: A closer look at how the U.S. tax system scales with income and what that means for the top 1% of earners.
      • Real Figures: We break down recent statistics to understand the actual tax contributions made by high earners.
      • Beyond Income Tax: Examining other significant tax obligations faced by the wealthy, including sales tax, property tax, and surtaxes.
      • Debunking Myths: Addressing common misconceptions about tax evasion among the wealthy and what the data really shows.
      Thanks to our partners, NAPA TRACS and Promotive
      Did you know that NAPA TRACS has onsite training plus six days a week support?
      It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
      Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
      It’s time to hire a superstar for your business; what a grind you have in front of you. Great news, you don’t have to go it alone. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Get a copy of my Book: Download Here
      Aftermarket Radio Network
      Click to go to the Podcast on Remarkable Results Radio
    • By Changing The Industry
      Why You Cant Raise Your Price
    • By nptrb

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • By carmcapriotto
      Thanks to our Partners, AAPEX, NAPA TRACS, and Automotive Management Network By leveraging tools like digital vehicle inspections (DVI) and customer relationship management (CRM) systems, businesses can significantly improve their operations and customer experience. These integrations allow for a more streamlined process, from diagnosing vehicle issues to maintaining consistent communication with clients. Ben Dexter, National Training Manager, NAPA TRACS Show Notes
      Ben's journey in the automotive industry (00:00:55) Ben's progression from service writer to National Training Manager and his experience in the automotive industry. Importance of shop management systems (00:02:04) The critical role of shop management systems in the automotive repair industry and the support provided by NAPA TRACS. Value of training (00:03:21) The significance of investing in training and the impact of leadership participation in training programs. Building customer rapport (00:11:22) Ben's approach to building customer rapport and the importance of effective communication and attention to customer needs. Significance of scheduling (00:13:12) The shift from reactive scheduling to a coordinated approach, addressing the issues of timely and accurate repairs through effective scheduling. The power of software integrations (00:15:37) The commitment to utilizing shop management software and the potential of integrations with other tools like DVI and CRM for business growth. Utilizing shop management systems (00:19:08) Encouraging the use of shop management systems and the availability of resources for business advancement. Role of technology in DVI (00:20:42) Discussion on the coordinated effort required for effective Digital Vehicle Inspections (DVI) and the benefits of real-time communication. Challenges in utilizing software (00:22:32) Exploring the reasons behind the underutilization of software tools and the need for effective leadership and training. Importance of testing and measuring (00:25:13) Highlighting the significance of testing and measuring business performance for improvement and growth. Communication and customer service (00:28:27) Emphasizing the importance of effective communication with customers to prevent unexpected breakdowns and enhance customer satisfaction. Impact of scheduling on service advisors (00:30:07) Discussing the influence of scheduling on service advisors' decision-making and the need for consistent customer recommendations. Rethinking business analysis (00:32:47) Encouraging a reevaluation of business statistics and reports to identify missed opportunities and improve overall business strategies. Morning Meetings and Reporting (00:33:21) Discussion on the importance of morning meetings, sales reporting by service writer, and constructive performance discussions. Maximizing Existing Resources (00:34:55) Emphasizing the significance of making the most of existing resources before seeking more car count. Linear Quantity Opportunities (00:36:32) Exploration of the linear quantity opportunities in parts matrix, addressing traditional matrix problems and opportunities for improvement. Commitment to Lifelong Learning (00:38:54) Highlighting the importance of lifelong learning for success in shop management and overall strategy. Thanks to our Partners, AAPEX, NAPA TRACS, and Automotive Management Network Set your sights on Las Vegas in 2024. Mark your calendar now … November 5th-7th, 2024. AAPEX - Now more than ever. And don’t miss the next free AAPEX webinar. Register now at http://AAPEXSHOW.COM/WEBINAR NAPA TRACS will move your shop into the SMS fast lane with onsite training and six days a week of support and local representation. Find NAPA TRACS on the Web at http://napatracs.com/ Get ready to grow your business with the Automotive Management Network: Find on the Web at http://AftermarketManagementNetwork.com for information that can help you move your business ahead and for the free and informative http://LaborRateTracker.com Connect with the Podcast: -Follow on Facebook: https://www.facebook.com/RemarkableResultsRadioPodcast/ -Join Our Private Facebook Community: https://www.facebook.com/groups/1734687266778976 -Subscribe on YouTube: https://www.youtube.com/carmcapriotto -Follow on LinkedIn: https://www.linkedin.com/in/carmcapriotto/ -Follow on Instagram: https://www.instagram.com/remarkableresultsradiopodcast/ -Follow on Twitter: https://twitter.com/RResultsBiz -Visit the Website: https://remarkableresults.biz/ -Join our Insider List: https://remarkableresults.biz/insider -All books mentioned on our podcasts: https://remarkableresults.biz/books -Our Classroom page for personal or team learning: https://remarkableresults.biz/classroom -Buy Me a Coffee: https://www.buymeacoffee.com/carm -The Aftermarket Radio Network: https://aftermarketradionetwork.com -Special episode collections: https://remarkableresults.biz/collections            
      Click to go to the Podcast on Remarkable Results Radio


  • Our Sponsors



×
×
  • Create New...