Legend - Correcting Cost of Sales from Miscellaneous Purchase Orders
by Bryan Horstman, Manager of Consulting

While reviewing your daily transaction/sales reports you may discover that someone added an extra zero to the cost of parts when those parts were purchased and sold using a Miscellaneous Purchase Order. In most instances, your initial reaction would be to identify the erroneous posted value and make a correcting manual journal entry to the Cost of Sales and the Parts Inventory General Ledger accounts. This correcting procedure will fix the general ledger, BUT this transaction also has a negative impact on the sales commissions and other parts reports.  

Q: How should I correct a Cost of Sale posting error when parts are received and sold using a Miscellaneous Purchase Order?

A: Follow these steps:

1. Identify the general ledger accounts and amounts related to the erroneous transaction using AR Invoice Accounting Display (AR820) located on the Additional General Ledger menu.
2. Use Parts Order Entry/Processing (PO120) and the original salesman number to issue a credit invoice to the customer. Use the original purchase order number, reverse the quantity, reverse the sale price, and reverse the incorrect cost from the original invoice.
3. On a separate line of the credit invoice, re-invoice the customer. Use the original purchase order number, the original quantity, the original sale price, and the correct cost.

These invoice procedures will correct the general ledger, and correct the commission records. The invoice will have a zero balance with no impact on the accounts receivable records.

Legend - Posting cores when the core record does not exist
by Kathy Cronin, Applications Consultant

Q: What is the correct procedure to post inherent cores to the physical inventory when the core part number does not exist in Inventory File Maintenance (IN900) at the time the exchange item is posted using Post Incoming Purchase Orders (PU850)?

A: When posting an incoming purchase order to parts inventory for items with inherent core values, the inherent core part numbers must exist in Inventory File Maintenance (IN900) prior to posting the part to the physical inventory.

If you post only a core part number using Non P/O Fast Inventory Posting (IN165), the Non P/O Fast Inventory Posting (IN165) program will post the core to the junk core physical inventory and the corresponding junk core general ledger number.

When reconciling the physical inventory to the general ledger and it is determined the inherent core value was not received into the inherent core physical inventory, you should use Average Cost/Shelf Quantity Adjustments (PU875) to delete the exchange part from the posting reference by changing the quantity received for the exchange item to zero (0), add the inherent core part number to Inventory File Maintenance (IN900), and then repost the part using Non P/O Fast Inventory Posting (IN165), using the original posting reference number. The reposting of the exchange part number will then post both the part and inherent core to the physical inventory.

ProfitMaker - Crediting labor and posting to QuickBooks

Q: How can I credit labor in Repair Orders and post this to QuickBooks? 

A: One way to handle the labor credit is to enter credit hours in the Elapsed Time field when entering the time on the Labor tab. The system will not allow for the "Time Out" to be before the "Time In," but by entering a minus sign (-) before the hours in Elapsed Time, the system will multiply the negative hours by the mechanic's rate.

To tie into QuickBooks, you can create a fictitious mechanic to be used to credit labor, and alter the Account Code in Employee/Technician Maintenance to post to QuickBooks general ledger numbers that you define.

Another way to handle this would be to create a "Miscellaneous" type part number that can be set to the Account Code for labor or another Account Code that you define. Creating the part as a "Miscellaneous" type will allow you to bill out the credit without reducing your quantity on hand, while still posting to the QuickBooks general ledger accounts defined by the Account Code.*

ProfitMaker - Tying freight to QuickBooks

Q: How can I make freight tie in to the QuickBooks account?

A: Freight can be added into ProfitMaker through Part Maintenance with an inventory type of "Miscellaneous." The Account Code you set up will define what QuickBooks general ledger accounts it posts to.

*Note: When adding a part with an inventory type of "Miscellaneous," ProfitMaker does not reduce the quantity on hand. When adding the part to a Repair Order or Sales Order, select the Miscellaneous tab to add the part.

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