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Part Sales and Cost Controls in Automotive Repair

Controls on repair order parts can go a long way toward reducing shrinkage. Purchase and return transactions as well as issues to repair orders should be tracked and controlled by recording them in the repair shop software in use. Sometimes shops will process inventory without recording transactions and this leaves them open to losses. Recording part purchases and returns can seem tedious and some shops opt to pay the vendor off the statement. This practice leaves the shop open to problems. Following are areas that proper tracking and control can prevent loss:

  1. Process and Pay Vendor Invoices – When parts are delivered there’s an invoice associated with the purchase. Processing these invoices in the auto repair shop software will create a record of the purchase. If purchased for use on a repair order – the link to the repair order should prevent the part from being deleted from the repair order. This will ensure that part purchases are accounted for.
  2. Process and Track Vendor Returns – When a part is returned to a vendor it’s important that it’s tracked through the vendor return process. The auto repair shop software in use should track the part through the process of 1) staged for return; 2) returned to vendor; and 3) credit or refund received. This will ensure that parts are not lost in the return process.
  3. Record Part Issues from Stock – The auto repair shop software in use should record all inventory movements. Part issues from stock to repair orders are important transactions to record. This creates a trackable record of who issued the part, the date and time it was issued and the person who issued it. The repair shop software should prevent the part from being deleted from the repair order but allow it to be returned to stock (reverse issue). This will serve to ensure parts are not deleted from repair orders when they shouldn’t be.

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