- Never combine multiple vehicle parts on a single invoice.
- Each vehicle’s parts receipts should be on its invoice with a purchase order number assigned.
- The purchase order number is the invoice number from the repair order.
- The customer’s final invoice, all parts receipts, and any notes are stapled together and filed.
- File all other invoices in alphabetical order by the supplier.
- At the end of the year, put all the records in plastic bags, use a marker and write the supplier’s name on the bag. Please put them in a storage container and mark them with the year.
- Keep these records for at least seven years.
Accounting for Returns
- Cores and returns can cost you money if not accurately controlled.
- A system or method must be in place and followed to ensure accountability.
- Incoming parts checked in to ensure you received every item listed on the supplier’s invoice.
- Each Technician has a designated location for their incoming parts.
- A core must be tagged and placed on the returns shelf after installation.
- A merchandise return form must be signed, and a copy kept on file.
- Enter all invoice data into Returns Solutions for computer accuracy following, or develop a spreadsheet or folder system of your taste.
- Enter the verification credit invoice into Returns Solutions and file the paper copy. If you are using a folder, add the credit to it or mark it off your spreadsheet.
- End-of-the-month supplier or bank statement reconciliation ensures with confidence that the money has reached your account.
Tax Accounting
The better you control these expenses, the less you must pay taxes.
Orderliness is of the utmost importance.
Every invoice equates to a deduction which in return saves you money.
Develop your method of controlling invoices. For example, put the receipt in your wallet/purse if you are away from the shop. Large invoices are placed on the passenger seat until you return to the shop. Organize in-house invoices in a letter tray for later processing or process them immediately.
Track the invoices by entering the data into Returns Solutions or use a spreadsheet to record all invoices.
Record the date of purchase, invoice number, purchase order number, supplier, dollar amount, and category.
Returns Solutions can do all this for you and much more!
