Physical Inventory Best Practices

Easily find your Obsolete Parts to Write off

A popular time to write off obsolete parts for dealerships is during a physical inventory count.  This can easily be done by running a Parts Aging Report based on Last Activity Date as shown below.

Put in the < (less than) date of 1/1/2012 for all parts that haven’t had any activity since the first of the year.  This date can be changed to any date you would like.

Infinity Physical Inventory Basics

You can access the Physical Inventory System through the Parts and Service Menu by clicking on Tools -> Parts Tools -> Physical Inventory.

You can then either recall a previous physical inventory count from the list, or start a new count by clicking on “Start New Physical” button on the bottom left of the screen.

You may then select which type of physical inventory count you wish to perform; your options are as follows:

  • Full Count – Allows you to perform a full EOY (End of Year) count of your parts inventory
  • Cycle Single Bin Parts Count – Used to load parts assigned to the single bin selected in the Bin location filter
  • Cycle Multi Bin Parts Count – This will load the parts that exist in more than one bin
  • Parts Not Counted Since – This will initially load parts that haven’t been counted since a specified date
  • Parts Sold During Count – This will load parts that were sold during a prior parts physical inventory count
  • Top N% Gross Profit Count – This will pre-load parts that have a specified percentage of gross profit
  • Cycle Specific Class/Source – This will initially load parts that are assigned to the specified Class or Source

Once you have selected the physical inventory count type you wish to run and inputted your selection criteria, Infinity will list all the relevant parts specified as shown below. You may then adjust the Count Quantities as needed, never adjust your bin location, if you need to add a new bin location to a part be sure to add the part once more to the physical and adjust the quantity in the old bin to zero.  If you need to add additional parts to the current count manually, you will input them into the blank line at the bottom of the screen.   If any parts are listed in red on the list, you will need to address the error that is displayed for that part in the message field.  All errors must be resolved before the final physical inventory counts can be posted.

Before posting your final physical inventory count, it is a good idea to run a parts variance report.  This will help identify any possible counting errors or large potential variances you may want to research further.  The reports can be accessed from a button at the bottom of the screen.

There are also two other additional tools available to help with your physical inventory count at the bottom right of the window:

  • Set Count Qty To Zero – If you have a number of parts that state “Count Field is Null” and you know those parts are not in inventory and should be set to zero you can hit his and it will fill in “0” in the count field for all parts that do not contain a numeric value in this field.
  • Set Bins to None – If a part does not have a bin assigned to it you do not wish to assign it during the count you may hit this button and the system will assign the bin “(None)”.
     

The final step when completing a Physical Inventory will be to click on the Post Count button, this will take the physical inventory quantities found for each part and push them into your Master Parts Inventory.

If you are completing a  Full Count then you should also run two additional cycle counts to ensure you have counted every item in inventory.  The first will be the Parts Sold During Count partial physical to find out if any parts that were counted during this time period were also sold.  If parts do show up in this partial Physical then you should re-count them and post it.

The second will be the Parts Not Counted Since partial physical, this will find any parts in your master inventory that were not inventoried during the complete physical will show up in this physical, you should count these items and post the physical once completed.

After you have finished posting your physical inventory counts with the Post Count button, don’t forget to update your accounting parts inventory value as well.  To easily find out your adjusting entry amount, run the Inventory Values by GL Number report under Accounting Reports -> General Ledger Reports in the Reporting Module.

This report will show the difference between your recently updated parts inventory value (please note that this report updates overnight so run next day to get true updated values on the report) and the accounting parts inventory value.  Please be sure to consult with your accountant before making this entry to ensure it is the best course of action for your dealership.

 

Helpful Physical Inventory Tools:

Motility’s Infinity Mobile has a scan tool that will allow you to scan parts for Physical Inventory and email the file to be uploaded into the system.  There is setup involved so please contact support to make sure everything is set up.

When logged into Mobile, go to Parts Tolls> Part Scanner

Now Mobile you will input your Bin Location and Count QTY and scan your parts. This will be done for every part.

Once you have scanned the parts, you can Export the Data. The system will email the file to an email of choice. The file will be in a .CSV File format.

File Format is Part number, Bin, Count QTY.

Please note that you can upload as many files as you need. It does not have to be in one file. Just be sure to not scan the part more than once because it will update to the last file import if has been scanned more than once.