Reconciling the floorplan

Why reconcile the wholesale statement?

A best-practice process, upon reconciliation it shows units the floorplan provider may be charging you for that you do not have possession of.  Shows incomplete dealer trade units, missing units, monies not applied correctly, units in transit as examples.

Creates another set of check and balance.

RECONCILING THE WHOLESALE STATEMENT

Supplies list

  1. Run a set of new and clean used inventory schedules at month-end check floorplan balances.
  2. Obtain a copy of the wholesale floorplan reconciliation template.
  3. Obtain a copy of the wholesale statement (make sure the ending periods

on the schedules and wholesale statement match).

  1. Calculator
  2. Paper, pencil & highlighter

Time to get started?

Begin by making copies of all documents in your possession, place the originals in a safe place for future use.  Next, highlight all matching units from the wholesale statement to the books using the vehicle identification numbers and verifying the floorplan balance.  Once comfortable that everything that matches is highlighted, time to update the attached worksheet.  It’s important not to alter or change the output worksheet.  Record transactions as reflected on the books and the bank on your Excel worksheet, time to double check those transactions against the bank statement.  Refer to the example worksheet for further questions.

Once the preparer is comfortable, all outstanding transactions are notated time to review the data and make posting corrections if necessary.

For the worksheet, are there units that are on the store’s books book does but not on the floorplan statement?

Are there items not reflecting on the wholesale statement but the books?

Does the store have units in transit?

Are there units in transit on the floorplan statement (possibly units the store has not stocked in yet)?

Are there any adjustments to be made for possibly posting errors?

Is there any rounding or small variance?

Find the general ledger balance (store’s books)

Find the bank balance (should reflect on the wholesale statement)

Once the worksheet states a zero variance and the data is correct, this reconciliation is complete.  Further audio discussion’s attached.

 

“They call it coaching but it is teaching. You do not just tell them…you show them the reasons.”

-Vince Lombardi-