Source Accounting: Are Your Sales Accurate?
There’s no better time than the end of a year to review your setups with and make sure your source accounting and sale accounts being set up properly. We consistently get calls about gross profit being low for a specific Sale Account or Asset Account going sideways. Inevitably, these issues lead to improper setups in either parts, service, or accounting setups.
If you are on the CDK System, your Service Department may have been adding new Labor Types, and if Accounting and Parts are not notified so that they can properly be set up, these will fall back to the default and in many instances this will lead to parts being reported to the wrong Sale Account and/or Asset Account. This becomes even more difficult if you have multiple franchises on the same inventory account.
With Reynolds and Reynolds, you have to review Programs 2571 for Parts Counter Tickets and 3636 for Service Repair Orders if you are having a problem. With Dealertrack, it is always a good practice to do a quarterly review of your Source Group setups and make sure that no new sale types have been set up that are not defined.
These audits need to be reviewed internally by someone familiar with the setups at your dealership. Usually, this is the Business Manager or Controller. If you want accurate sales and monthly reconciliations between the General Ledger and Parts Inventory, keep an eye on your setups!
If you have any questions, concerns, or just want to get a checkup, call us today!!