Please follow the following steps to end-of-month procedure.
Step 1: Printing out inventory report in GEM-CAR:
- Go to the “Inventory management” / “Product/Job code management”.
- Click on the printer.
- In the bottom window,
- Select the categories (do not select the service or labour categories)
- Deactivate the instructions
- Choose quantities greater than “0”.
When: The last day of the month at the end of operations or the first morning of the month
(option: use a saved copy): Paid service by V2V
Who: Determine who will be responsible: Controller, Parts Director and Owner (in order of priority)
What: Inventory report with the inventoried categories.
Step 2: Print out a statement of the previous and current months
Retrieve the value of your inventory at the beginning of the month.
- Value at the beginning of the month: A (inventory value in your statement)
- Value at the end of the month: B (GEM-CAR report)
- Inventory variation C: B-A
E.g.: Starting inventory 30,000, GEM-CAR inventory 100,000, Variation 70,000
GL Accounting Transaction
- 1535 parts in inventory 70 0000 CREDIT
- 5020 cost of merchandise DEBIT 70 0000
Cost of merchandise sold:
- Parts sales: D
- Parts purchases: E
- Inventory variation: F
- Cost of parts sold G: E - F
E.g.: D: 230,000, E: 240,000, F: 70,000, G: 170,000
- Profit on parts: 230,000 – 170,000 = 60,000
- Profit margin: 60,000 / 230,000 = 26.1% (what margin should I have on my parts? FAQ )
Adjustment of core values:
- Go to the PDV and click the button "Old Core".
- When: End of the month
- Validation of credit entries
- Deletion of cores with credit memo
- Send cores and credit entries of cores via Purchasing Dep (it is up to you to decide who is responsible)
- The uncredited cores must be deducted from the cost of merchandise sold
Transaction of expected core credit:
Core GL transaction
YYYY expected credit DEBIT X
5020 cost of merchandise X CREDIT