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.