Monthly Manufacturer Statement Processing

Monthly Manufacturer Statement Processing When Using Floor Plan Liability Accounts

Manufacturer Statement Shows a net amount owed for the current month as follows:

In the above example, all of the amounts in the Current Amount Due column need to show up in accounts payable so that you can pay the net amount due of $2,000.00. The amounts that only show up in the Balance column are not currently due but affect the Floor Plan Liability Account. Some of the amounts in the Current Amount Due column will already be in accounts payable waiting to be paid - others will not. Following are suggested procedures for reconciling and paying these amounts.

Step 1 - Ensure that all items on the statement are accurately reflected in WinNetStar

Parts Charges

These amounts should have been recorded by the parts department using an Item Receipt/Bill document when the items were received and later reviewed and edited by the accounting department when the invoice was received. To find these amounts, go to Suppliers > Find > IR/Bill. If you have been entering the supplier's invoice number in the Supplier Reference field on the IR/Bill document, you can use the filter on the IR/Bill list to easily find the matching document by entering the supplier's invoice number. Ensure that the dollar amounts match exactly and that the correct supplier has been used. If the dollar amounts do not agree, research any differences and make necessary corrections so that the amounts will match.

Wholegood Charges

Purchases of new whole goods should have already been recorded as they were invoiced from the manufacturer. Go to Company>Find>Chart of Accounts to open the Chart of Accounts. Double click on the appropriate Floor Plan Liability Account to open the transaction register for that account. Select a date range to show the transactions for a period that includes the statement period and ensure that the whole goods liability has been recorded in an amount that matches your statement. If the amounts do not match, double click on the respective line to open the document for editing. If the amounts do not exist, create a Wholegood Journal document to record these amounts.

Any required curtailment payments may or may not have been entered at this point. If they have been recorded, you should review the amount to ensure that it matches the statement. Do this by opening the transaction register above - any curtailment payments that have already been entered should show up there. If they have not been recorded, you should create either a Journal Entry or an Item Receipt/Bill document to reflect the amount due. An Item Receipt/Bill document might look as follows:

Interest Charges

Your interest charges have probably not been recorded at this point. You may either expense interest charges as they are incurred, or you may capitalize the interest against each whole good unit. To record those charges as an expense, you can enter an IR/Bill document or a Journal Entry. An IR/Bill document might look as follows:

To capitalize the interest cost to the whole good, you could create one new Wholegood Journal for each interest charge as follows:

Other Charges

Other charges on your statement such as Marketing Fees or Machine Insurance have probably not been recorded at this point. You can record these with an Item Receipt / Bill document or a Journal Entry. A Journal Entry to record these accounts might look as follows:

Part Return Credits

These amounts should have been recorded by the parts department using an Item Receipt / Bill document when the items were returned, and later reviewed and edited by the accounting department when the credit memo was received. To find these amounts, go to Suppliers > Find > Item Receipt / Bill. If you have been entering the supplier's invoice number in the Supplier Reference field on the Item Receipt / Bill document, you can use the filter on the Item Receipt / Bill list to easily find the matching document by entering the supplier's invoice number. Ensure that the dollar amounts match exactly and that the correct supplier has been used. If the dollar amounts do not agree, research any differences and make necessary corrections so that the amounts will match. If the supplier has been incorrectly selected, the Item Receipt / Bill document must be voided and re-entered with the correct supplier.

An Item Receipt / Bill document for returned parts might look as follows:

Wholegoods Return Credit

If a Wholegood is returned for credit, the credit should be recorded on a Wholegood Journal or on an IR/Bill. These amounts may or may not have been recorded at this point. Review the transaction register for the floor plan liability account as noted above under Wholegood Charges and match the amounts on your statement to entries in the floor plan liability account. An IR/Bill used to record a returned wholegood might look as follows:

If, for any reason, a partial credit is given by the manufacturer for a whole good that will not be returned, you would create a Wholegood Journal or an IR/Bill for the amount of the credit. A Wholegood Journal to record a partial credit might look as follows:

Other Credits

Other credits, such as advertising co-op credits and volume discounts not tied specifically to a whole good unit, can be entered in a Journal Entry as follows:

Warranty Credits

The warranty credits should be compared to the warranty receivable amounts that have been recorded for this manufacturer. Your warranty receivables can be viewed in a variety of places in the system. One way is to run a statement for the warranty customer as follows:

Ensure that the receivables recorded in the system match the amount of the credits issued by the manufacturer. If they do not, investigate any differences and make necessary adjustments. If you are receiving credit for warranty work and do not see an accounts receivable amount for that work, it may be because the Repair Order has not been settled. In this case, review the Repair Order List for any Repair Orders that have not yet been settled, edit as needed, and settle accordingly. Since the Repair Order becomes read-only when settled, any adjustments to settled amounts will need to be made using a Journal Entry. Debit or credit the A/R Trade account as needed to arrive at the correct balance, with the offsetting entry going to the appropriate Revenue or Expense account.

A Journal Entry to correct a warranty receivable amount might look as follows:

Now that all activity on the statement has been reconciled to transactions in the system, you are ready for step 2.

Step 2- Create an IR/Bill to move the sum of any warranty credits from A/R Trade to Accounts Payable as follows:

Step 3 - Offset the $1102.50 credit in A/R Trade against the debits for the warranty customer using a Customer Receipt document:

Step 4 – Go to:  Supplier > New> Pay Supplier Statement

If your supplier does not show in the supplier drop-down, you will need to set them to Pay by Statement. Go to the Supplier Master Record, Details Tab, check the box for "Pay by Statement", then Save and Close. While working on the document, you can Save or Save and Finish Later at any time. The next time you go to Supplier > New > Pay Supplier Statement and choose this supplier again, it will reload the document with the changes you have saved. Refresh will load any new transactions or changes to existing transactions added in the system after you started working on the document.

Once you have selected all items for payment and all credits to be included, you will want to verify that the Total Amount Paid matches the payment you made on your Manufacturer Statement ($10,799.08). In this example, there were no partial payments or credits entered, so my Statement Balance, Selected Items, and Amount Paid are the same. If there are partial payments, the Amount Paid will be different. The Statement Balance must equal the Selected Items and the Amount Paid must equal your payment to your supplier before you Save and Create your Payment Document.

Step 5 - Ensure that the ending Floor Plan balance per the statement matches the general ledger as of the statement date:

Once you have verified your Floor Plan balance is correct, you have completed your Manufacturer Statement Processing.