Remove a unit from inventory

Trading Units on Floorplan / Backing units out of Inventory This method instructs you to apply cost adjustments and remove the unit from inventory.  This method would be used when a unit has had activity on it that would prevent reversing the unit invoice. Removing a unit from inventory requires a cost adjustment and adjustment payment to remove the financial information and requires you to change the availability of the unit so you can remove it from the inventory listing.

Trading Units on Floorplan / Backing units out of Inventory  

This method instructs you to apply cost adjustments and remove the unit from inventory.  This method would be used when a unit has had activity on it that would prevent reversing the unit invoice.

Removing a unit from inventory requires a cost adjustment and adjustment payment to remove the financial information and requires you to change the availability of the unit so you can remove it from the inventory listing.

Step 1 is a cost adjustment on the unit to bring the cost of the unit to zero. To do this, perform the following steps:

1. Go to Unit Sales and Management and select Unit Inventory

2. On the unit inventory filter, enter the stock number of the unit and click refresh. This will list the unit in the result pane and by double clicking on the unit you will open the unit detail window.

3. In the Unit Details window, click on the Cost Adjustment tab.

4. Review the screen – The unit’s original invoice is in the first section of the tab, and adjustments to the unit (in the sample, below) appear in the second section – you can see the total at the bottom of the screen

5. Reverse the impact of the invoice:

   1. To add a cost adjustment click on the add Item icon. This will create a line in the cost adjustments section of the window.

   2. The first thing to enter is a description of the adjustment in our example we will enter Transfer unit.

   3. The next choice is for the type of adjustment you are doing.  There are 2 types of adjustment:
      • Base cost
      • Option cost
      When removing a unit from inventory the type should be Base cost.

   4. Then you need to enter the amount of adjustment, again using the screen shown above. The amount of the adjustment will be a negative $16,500.00 (Remember we are reversing the original entry so the adjustment will need to be a negative amount).

   5. Because we are removing a stocked unit from inventory we will need to invoke the GL.

   6. The next item is to select a GL account that this adjustment is to be posted to. Since we are removing this from inventory this adjustment will need to go to a clearing account.

   7. The last item is the date of the adjustment which you can set to the last day the unit was in your inventory, the date of the floorplan credit, or the date of the original invoice.

   8. Save your entry.

6. Reverse and Rebill any Service Orders on the unit.

   1. Open the service order by double clicking on the cost adjustment line.

   2. Under the file menu, click Clone Invoice

   3. Click the Bill To icon at the top of the screen on the new invoice, and select either the customer who will pay for the service order, or Bill out to an internal customer for expense.

   4. Copy the VIN and unit description to the notes of the invoice.

   5. Mark the invoice Charge on Account.  (note that the hours of work are already accounted in the original invoice and should not be altered on the new invoice)

   6. In the original invoice, now reverse the invoice – and mark paid.  This will clear the unit inventory transaction. (note that the hours of work are already accounted in the original invoice and should not be altered on the reversal)

7. The Unit Details>Cost Adjustment Tab should now be similar to this:
   Note that the Unit Actual Cost at the bottom of the screen is zero.

8. Take a minute and check to make sure that the unit hasn’t been tagged in any open service orders (all work will need to be rebilled or cancelled, not charged to the unit).  At the same time, make sure the unit hasn’t been used in any deals (quotes)- swap the unit on the deals if it has been selected.

9. Once the Unit actual cost is set to zero we can remove the unit from the inventory listing by clicking on the General Info tab of the unit detail and change the status of the unit from Available to Blank and uncheck the Stock check box:
   

10. Click Save, and then go back to the Cost Adjustment tab and double click the original invoice to open it for your review.

11. Now you will create the Credit invoice:

    1. In a new window, open a new Vendor Invoice

    2. Select the same vendor on the new Vendor Invoice  as on the Unit Invoice

    3. Add a Miscellaneous Item (you may need to create a new one for Unit Transfers) and make sure the GL account and the amount is the same as on your Cost Adjustment

    4. Ensure the taxes match the original unit invoice

    5. Ensure the total matches the total on the Unit Invoice – BUT THIS SHOULD BE A NEGATIVE (it is a credit note)

    6. If possible, give the credit note the number assigned by the floorplan company, or use the VIN as the invoice number.

    7. Add any notes to the invoice.

    8. Date the invoice:  set to the last day the unit was in your inventory, the date of the floorplan credit, or the date of the original invoice.

    9. Post the invoice

12. Go to your AP screen and create a new payment

    1. Select your original invoice and your new Credit Invoice

    2. Since one of the reasons you have to use this method is due to curtailment payments, Adjust the amount of the Credit invoice used to make the total transaction zero – this will leave some credit for future use.  Post the payment.

13. Finally, check to make sure that the GL that held the cost adjustment has cleared, that the unit does not appear on the Unit Inventory transaction report, that it does not appear in inventory (available for sale) and that the amount remaining on the credit note matches your floorplan statement.