AUT23SS01. Challenges of Reconciling Parts and Accounting, presented by Total Dealer Solutions

Every year dealerships perform parts physical inventories and attempt
to reconcile the parts pad to accounting. While the physical is pretty
straight forward, most dealerships run into difficulties when trying to
reconcile the parts pad to the general ledger. If everything throughout
the year flows properly between parts and accounting, the variance to
accounting should be zero but that never happens. In many cases
dealerships can be off by $20,000 or more in either direction with no
explanation.

Learning Objectives:

• Determine how to spot variances throughout the year rather than waiting until the next annual physical.
• Identify what is causing overages and shortages
• Apply policies and procedures that help avoid vulnerability to shrinkage.