Tekmetric now has the ability to recognize when the cost of a part or part type is updated on a repair order (RO) and can subsequently update this data for the part on the associated purchase order (PO) and vice versa.
Why is this important? Because the shop needs to ensure the part costs and part types on the parts PO (which contribute Accounts Payable) correctly matches the part prices on the associated ROs (aka Cost of Goods Sold), as it will impact the shop's profit margins.
In this article, we will review the steps on how to review both of these processes.
IMPORTANT: If you change part costs after customer approval and have an automatically applied parts matrix, your part retail price can be changed. Before making any changes, we recommend reviewing the retail prices that might have already been quoted to the customer. If you update cost, you'll need to consider whether you need to turn off the parts matrix, get updated approval for price increases from the customer, or if you're going to absorb the additional cost of the part which will reduce profit margins.
1. Updating the Part Cost/Type in a Repair Order and Sync to the Purchase Order
When a shop orders a part at a particular price point and then receives it at a different price point, the shop is able to update the price within a RO, and Tekmetric will display a prompt to update the part cost on the PO associated with that part.
For example, if a shop purchased a part for $151.55 through PartsTech, but then upon receiving the item there was an overnight charge that resulted in the part cost being $171.99, whoever receives that part would need to update the part cost on the RO - and Tekmetric will display a prompt to update the cost on the PO.
- Update the cost on the part line of the job manually.
- Save the job, then Tekmetric will display a prompt to sync the part cost on the RO to the part cost on the PO.
- Refer to the PO within the orders screen to confirm the cost of the part has been updated and is correctly in sync.
Original Part Cost on the Repair Order
Updated Part Cost on the Repair Order
Sync Part Cost?
Updated Cost on the Purchase Order
2. Updating the Part Cost/Type on a Purchase Order and Sync to the Repair Order
Sometimes shops experience price changes when receiving parts after the parts were originally ordered, and updates to the part cost or type are needed. If the invoice has a different part cost than what is entered into Tekmetric, shops can update the cost within the PO, and Tekmetric will display a prompt to sync the updated cost to any ROs that are linked to those parts by completing the following steps:
- Update the cost on the PO and click save.
- Save the purchase order, Tekmetric will prompt the user to sync the part cost on the PO to the part cost on the RO.
- Refer to the RO to confirm the cost of the part has been updated.
Original Cost of the Part on the Purchase Order
Update the Cost of the Part on the Purchase Order
Sync the Cost from the Purchase Order to the Repair Order
Updated Cost on the Repair Order