HOW TO MANAGE OVERSOLD STOCK


It is very important that the Dealership manage their oversold stock for a few reasons:

  • To keep your inventory levels correct;
  • Not allow oversold stock to get out of hand;
  • It is dealt within a reasonable time; and
  • If your dealership has integrated accounting package, the inventory values remain correct.

What is oversold stock?

  • The dealership sells a part on a Customer Order but Blackpurl indicates there is actually no stock on hand.
  • When overselling stock, the user would have indicated to Blackpurl that they were forcing an oversold situation when creating the Customer Order and adding that particular line item.
**Please note that users will need to have the User Permission "Oversell Inventory" before they can Force Oversold
 
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  • The status of the line item will now be oversold.
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What can cause an oversold?
  • It may be caused when a Vendor Receiving hasn't been started and/or finalised;
  • A user may have sold the wrong part (ie sold a large instead of a small etc) and not noticed; or
  • Dealership may have just "found" a part and has sold it without writing it into stock first.

It is also very important that all Oversold stock are investigated as to how it became to be oversold and are fixed accordingly.  We would be recommending that you put a process in place on how your dealership deals with oversolds - for example: do they need to be signed off and managers advised etc


How to Find the Oversold Parts


Run a Recent Parts Report and then make a few changes:

 

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  • Click on User-added imageto change the following parameters:
    • Change Modified to Anytime - This will allow you to see all oversold parts. 
  • Click on User-added image and choose Oversold Qty
Then in the Oversold Qty field change to Greater than 0
  • then click on User-added image to update the search results
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  • Click on User-added image and add the column Overstock Qty > then click on User-added image

 

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  • This search result will now only list the oversold parts 
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  • Click on User-added image if you want to print or export the search result.

How to Fix Oversold Parts
  • Run the relevant report (see above)
  • Investigate each oversold part as to why it is oversold
  • To Fix:
1.   Navigate to the relevant Part record
2.   Click or scroll to the D. Cost Tracking section
3. Review and Investigate where the item became oversold
4. Confirm the quantity that has been oversold
5. Click on User-added image
 
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6.   From the Actions Menu > Resolve Oversold

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7.   The Resolve Oversold Stock screen will populate for review
8.   Review the Oversold Details section
9.   Review the Resolved Details section - this is how Blackpurl will resolve the oversold
**If you have accounting integration, you can see what type of transaction and the value that will be integrated to
your accounting package.
10. Click on User-added image to confirm that you want to resolve the oversold.
**If you have accounting integration, it is at this point that the relevant transaction will integrate to your accounting package.

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Result:

11.  The oversold has been corrected on the Part record.
 
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Review:
12.  To see any previous oversold transactions, on the relevant Part record  in the D. Cost Tracking section > click on User-added image > User-added image

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13.  This will list any oversold transactions done in the past. To show the fix, on the relevant oversold line item - click on User-added image

14.  The fix line item will then appear for review.
 
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Accounting Integration 


If your dealership has accounting integration, the Resolve Oversold action will create a transaction that integrated over to your accounting package to correct your inventory general ledger


For example we resolved oversold and this is the relevant journal:


  • Debit  - Adjustment General Ledger
  • Credit - Inventory General Ledger 


What General Ledger accounts the Resolve Oversold action will use is based on the following:


  • Debit General Ledger 


It would what is setup under Accounting Integration > Control Accounts -  Inventory Adjustments 



  • Credit General Ledger - Inventory General Ledger 


It is based on the category indicated on the relevant Part record and then what Inventory General Ledger is attached to that category