How to create & sell special items on invoices
Creating & selling special items
How do I create and sell special items i.e. storage on invoices?
You can setup ‘special items’ within the DealerVu part inventory and control the general ledger accounting with a special part group. Good examples of special items are:
- Storage Fees
- Re-stocking Charges
- Rental Fees
- Gift Certificates
Note: There is an alternate method that can be used for Storage Fees in case where you want a cost of labor charged internally for actual hours applied to the storage task. That alternative method is described at the end of this Help Guide.
Setup Special GL Accounts
You will need a special GL account for the destination of your special posting. To set up the GL account, go to Accounting->General Ledger->Chart of Accounts and create a new account.
Note: Gift Certificates sold would normally be accounted for in an accrued liability account (account type = Other Current Liabilities) such as “Accrual-Gift Certificates”. Rental fess, storage fees and re-stocking charges are normally revenue (Income) type accounts.
Setup a Special Part Group for Each Special Item
Part Groups are designed top be a way to establish part inventory groupings (i.e. Parts versus General Merchandise). There are fields on each part group for Sale and Cost of Goods Sold GL accounts. The GL posting rules look at the Part Group sale and cost of goods sold fields to see if they contain governing GL accounts. In the norm, you would leave these two GL account fields blank so that the GL accounts are governed by the hierarchy established in DealerVu for part sale and cost of sale accounting. However, in the case of ‘special items’ you can create a special item part group and assign GL accounts in the Sale and Cost of Goods Sold GL account fields. When those GL account fields are not empty (contain a valid GL account #) those accounts will control the GL accounting of any item sold that is a member of that part group. Consequently, we can use this functionality to ‘override’ transaction type and category accounting that normally occurs on part and service order invoices.
Note: If the sale GL account field is not empty then the Cost of Goods Sold account field cannot be empty. In many cases there will be no cost of sale to the item being sold (i.e. storage or rental is a fee charged without a direct ‘cost’ associated to that fee). So you need to give the Cost of Goods Sold field the same GL account used in the sales field. This thinking would be appropriate to apply to Gift Certificates that actually need to post a credit to the accrued liability account noted at the beginning. The Sales and Cost of Goods Sold GL accounts should both contain the GL account for the Gift Certificate accrual.
Hint: When you create ‘special’ part groups you should prefix the name with a character that forces the special item to the bottom of the Part Group selection list. This controls the sort order of the list whenever it is presented to a user, reducing the potential of a selection error for a valid inventory part. As a suggestion, a prefix plus name such as ‘Z-Storage’.
Create a Special Item in the Parts Inventory
As an example we will setup Storage fees:
- Go to Parts Inventory and select the New Part icon.
- Give the item a part# that represents the item i.e. STOR or STORAGE or ST.
- Put in a description
- Assign a vendor in the vendor field – normally you can use a store internal vendor account if one exists.
- Assign the special part group in the Part Group field
- If you want a default ‘Price’ for the item, then click on the Pricing tab and enter the value in the Standard Price field.
- Save and exit.
You can now use this special item on either a part sale invoice or a service order and the GL account will always be determined by the Part Group.
Alternate Method for Storage
You may choose to create a Labor item or items for storage fees because you may want the labor hours associated with the task of storing customer goods accounted for in the technician efficiency analysis report.
- Go to Settings->Labor->General Info.
- Select the New Labor icon
Note: The Cost value is the assigned Cost/actual hour applied to the task and the Estimated Hours value is the default value for hours that will be assigned to the Actual Hours on the Service Order.