Why its important to implement
Immediate credit note processing prevents invoice completion costs. Job file documentation prevents accidental customer billing. Thousands in potential losses prevented.
Credit Note Management Practice
Returning parts for credits in a timely manner is always a good practice as left unmanaged the total unused parts could run into thousands of dollars.
Credit Note Invoice Protection
If the part is not accepted as a credit with the parts supplier, then the shop will take the cost for the parts if the invoice is already completed, therefore it is important to send all credits and confirm receipt of them to reduce additional costs and loss of profit.
Job File Credit Documentation
The credit note (copy) should also be placed within the job file (hard copy or electronic) to ensure its not invoiced by mistake to the work provider.
Business Impact
Shop pays for unused parts if credits not processed timely. Risk of billing errors affects work provider relationships and business reputation.
Profit
If the shop is left with the unused parts at no fault of its own and the invoice is completed the body shop will have to pay for the part.
action steps
Implement immediate credit note processing policy, ensure accounts department receives credits promptly, enforce with warnings.
Credit Note Policy Enforcement
Strong internal warnings if policy not followed once established.
Credit Note Processing Policy
Implement internal policy, all credit notes must be sent to the accounts department immediately upon receipt.
Related tasks
Milestone:
07: Optimizing Parts Management & Storage