PartsRec & Purchase Orders: How to Streamline Your AP Process

This article outlines the best practices for using PartsRec to achieve an efficient and accurate AP process for processing Purchase Orders.

• Purchase Order (PO) Creation
  • Create POs in your Dealer Management System (DMS) for all non-factory, external purchases and returns.
  • Ensure all relevant information is included on the PO:
    • Detailed breakdown: Include exact part numbers, quantities, costs, freight, discounts, dealer fees, restocking fees, etc.
    • Reference details: Include invoice/RO numbers and any relevant PO comments.

•  Verification & Matching in PartsRec
  • Before finalizing any PO in the DMS, the Parts Manager should:
    • Make sure the invoice is in “complete” status in PartsRec.
    • Verify the accuracy of the PO in the DMS, ensuring costs, totals, and GL coding matches what is in PartsRec.

• Posting POs to GL (three options)
  • Option A: Paper-Based Processing
    • Export Complete Invoices: The Parts Manager prints the complete invoices PDF report for purchase orders from PartsRec.
    • Attach Invoices: Staple/paperclip physical copies of the corresponding invoices to the printed report.
    • Deliver to Accounting: Physically deliver the complete package to the accounting department for posting.
    • Post to GL: Accounting posts the invoices to the GL in the DMS.

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  • Option B: Electronic Processing
    • Enable Attachment Feature: Enable "need attachment" status in PartsRec. This requires an invoice to have an attachment before moving into complete status.
    • Attach Invoices Electronically: Parts Managers scan and attach a copy of each invoice to the corresponding PO in PartsRec.
    • Export Complete Invoices: Accounting can then export the complete PDF report. This will include the cover page summarizing GL coding and all attached invoices.
    • Post to GL: Accounting posts the invoices to the GL in the DMS.
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  • Option C: Hybrid
    • Export Complete Invoices: The Parts Manager downloads the complete invoices PDF report for purchase orders from PartsRec.
    • Scan Invoices: The Parts Manager compiles physical copies of the corresponding invoices and scans (in one batch/file) to computer.
    • Deliver to Accounting: Parts Managers emails accounting office with two attachments (the PartsRec export complete report and the corresponding batch of scanned invoices).
    • Post to GL: Accounting posts the invoices to the GL in the DMS.

• Daily Variance Review and Error Correction
  • Both AP and Parts Managers should review daily variance reports to identify any discrepancies on POs.
  • Errors should be categorized, assigned, and have notes for explanation.
  • Accounting should make the necessary adjustments to the GL to fix variance errors and maintain accuracy.