How do I deal with a part exchange that arrives early?

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Summary

This article explains how to book a part exchange unit into stock if it arrives before the deal is complete.

More Information

If you decide to accept a part exchange into stock before the deal is complete you will need to purchase the part exchange and allocate the amount to the deal, in a similar manner to taking a deposit.

Removing a Part Exchange from the Sales Order

Go to " Unit Sales Unit Sales Documents".

  • Find the existing 'Order' and press [Edit].
  • Click on the [Part Exchange] tab.
  • Select the Part Exchange record and click [Remove].
    • If the Part Exchange has been assigned a Stock Number, when prompted select [Keep] to leave the Part Exchange record on file.
  • Click on the [Payments] tab.
  • To the left of the list of Payment Centres will be a box containing a code e.g. 'Z900' - Cash.
  • Click in the box and type 'Z970' - Part Exchange Contra or the centre your accounts department wish you to use.
The centre you use here should also be used when you enter the payment details for the unit purchase - see Purchase.
  • In the "Payment" column, enter the amount you are allowing for the Part Exchange, i.e. the Purchase Price less any outstanding Finance.
If this results in a negative amount, i.e. they owe you more than the part exchange value you should enter the amount as a negative value. This will then add to the balance they owe on the deal.
  • Click on the [Print and Summary] tab and click [Print].
  • [Accept] the printout or choose [Reprint] if you want a copy for the customer and for your deal file.

Purchase the Part Exchange

Go to " Unit Sales Add or Edit Units".

  • If the Part Exchange had been assigned a Stock Number, find the Unit Record.
    • In the "Search on:", enter anything that you know about the unit e.g. unit model, registration number or any other criteria you may know about the unit.
    • Click the [Search] button to list units with that criteria.
  • Click [Edit].
  • Check all relevant information on the unit record has been filled in correctly.
  • If you haven't already created a unit record, click [Add].
    • Set the "New?" flag to 'N'.
  • If your system has been set up with HPI lookup, enter the unit "Registration Number" and click [Look Up].
    • The system will then contact HPI and fill in the unit information including "Make", "Model", "Description", "V.I.N.", "Chassis Number", "Engine Number" and "CC". The HPI system will automatically create the unit models if they do not exist already in the system. Please note that this is not a full HPI check - it simply fills in the basic unit information for you as noted above. HPI make a small charge for this service.
    • If you do not have the HPI link, you will need to add this information manually, see below.
  • Type in the Model of the unit. If the model exists this will appear, filling in the Make, Model and Description. If however the model does not appear you will have to create the model.

See Creating unit models.

  • Click the [Details] tab.
  • At "Reg. Date", enter the date of first registration of the unit.
  • Enter any other information that you might consider necessary, such as "Key number" and "Prev. Owners".

Purchase

On the [Purchase] tab you will need to enter the customer you are buying the Part exchange from.

  • The drop down box next to "Supplier" should be set to 'S'.
  • If not already filled in, enter the customer's account code or click search to find their account details.
The customer should already have been created if they have had a Unit Sales Order raised.
  • In "Purchase Amount" enter the amount you are allowing for the Part Exchange.
  • If there is any outstanding finance on the unit enter the amount in the "Finance Balance" field
  • Enter who this is with in the "Finance Company" field. If you need to find the account to use click search to find the correct account.
You should run an HPI check or equivalent on any used unit that you purchase to check for stolen, written off units or outstanding finance. This will cost money, but could save you a lot of hassle, aggravation and money in the long term.
  • Press <F2> to print a Purchase Invoice.
  • The "Purchase Centre" will use your system default (usually '200' - Unit Purchase Accrual).
  • If not already populated, enter the amount you are allowing for the Part Exchange i.e. the Purchase Price less any Outstanding Finance.
  • Enter 'Z970' - Part Exchange Contra in the "Payment Centre" or the centre your accounts department wish you to use. This should be the same as the centre you entered on the Unit Order.
You are creating a contra entry to avoid handing the money to the supplier of the unit then taking it straight back off them, the customer, as a unit deposit.
  • In the "Cheque/Comment" box you may wish to enter the stock number of the unit you are intending to sell to this customer. It can make it easier to track the links between this purchase and the deal overall.
  • Press <F2> or click [Invoice] to print out the invoice.
  • Click [Reprint] to print out a second copy of the invoice to enter into the deal file then click [Accept] to confirm all the details.
The invoice and payment will be posted to the Default Unit Purchases account (VEH001) on your " Purchase Ledger".

See also


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Keywords AND Misspellings
part exchange, early, deposit, purchase part exchange, remove part exchange, purchase
Tags

VS84, VS88

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