Ford V-Code Reimbursements are credits issued by Ford for parts cost adjustments. This usually happens when a dealer is originally billed at a higher cost than what Ford later determines is correct. Because these are cost adjustments rather than actual part returns, they should not be treated as reductions to your parts inventory.
When you first receive parts, they are posted to inventory at cost. Any later Ford price tape adjustments (appreciation or depreciation) automatically update the value of those parts through your standard inventory processes. Since the price tape update already lowered the value of those parts, applying the V-Code credit there too means you are docking your inventory twice.
Here is a quick look at how that double-reduction happens using part ABC123:
- Part Received: You receive 5 units of part ABC123 at $5.00 each, increasing your inventory value.
- Cost Change: Ford drops the price via a cost adjustment, which correctly lowers your inventory value.
- Cost Reimbursement: Ford then issues a V-Code credit for the difference. This reimbursement should not be posted to the inventory account as the cost change happens automatically.
V-Code reimbursements are entirely separate from monthly APDP adjustments. Automatic price tape updates handle the shifting values of your physical inventory assets; the V-Code reimbursement is purely a financial transaction. It is not meant to lower your inventory asset value any further.
Posting/Correcting Entry
- Correct Routing: Always record V-Code reimbursements to your designated allocation account for appreciation/depreciation, not inventory.
- Fixing Mistakes: If a reimbursement was accidentally posted as a credit to the parts inventory account, simply reverse the entry and move it to the correct allocation account.