FIAT accounting

[JoeRocket]

Not sure if this is the best place to post this (not a "General Chrysler Discussion" section), but this is where it's going.

We're a Chry/Jeep/Dodge store and are getting Fiat. Found out today that even though the Fiat "studio" is on the same property and the same departments will be selling cars/service/parts, we're having to make a new "store" in the DMS for the accounting. Same GM for both "stores". Same SM, PM, controller, etc, etc...

Example: Let's say that a customer comes in with a request for a Fiat 500 door handle and a diesel fuel filter for his 08 2500 Ram. We'll have to sell the customer the part for the Dodge on one invoice, back out of the Chry/Jeep/Dodge store, open the Fiat store in the DMS and create the invoice for the Fiat part separately.

All receipting, inventory, POs, reconciliation, freight, returns, ROs, payroll, etc, etc, are in the same boat...even though it's being done in the same place under the same corporate umbrella (and in our case the "two parts departments" are one and the same).

This isn't a dealership policy...it's Fiat's. They want everything separate from Chry/Jeep/Dodge instead of being Chry/Jeep/Dodge/Fiat. I could understand if Fiat was paired with a Honda franchise or something like that, but a corporate sister store? I mean, we use the same catalog for Fiat as we do Chry/Jeep/Dodge. Same PDCs stock the parts. Same DMs. You get the idea..

Besides being a royal PITA, it makes me think that Fiat just wanted to piggyback into this market and might sell off the Chry/Jeep/Dodge once it's established.


Thoughts? I hope I expressed my concerns well enough, my brain is pretty busy absorbing all of this and if I didn't include something relevant and important, let me know.

[SHACOS]

I don't understand why you couldn't just setup separate GL accounts for Fiat sales, cost, inventory, etc (i.e. Parts Inventory - Fiat and Parts Inventory - CJD). Then you could sell the parts in your example under one ticket, instead of two, just coding the parts to the separate accounts.

Is that not an option?

[steve_biegler]

[
Besides being a royal PITA, it makes me think that Fiat just wanted to piggyback into this market and might sell off the Chry/Jeep/Dodge once it's established.


DING DING DING..........We have a winner!!!!!!!!!!!

[XDCX]

I just realized I never commented on this thread.

Concerning Fiat's accounting request, is there any chance that's just something your local DM got mixed up about and has his/her facts wrong?

I can see why Auburn Hills might want a 100% pure Fiat Financial Statement from their dealers but as you indicated it's almost impossible to accomplish for the dealers who are using combined facilities. I just don't see how the benefit of a pure Fiat statement is worth all the work it entails.

Additionally, Auburn Hills may embrace a combined Financial Statement once they learn the majority of their Fiat stores are losing money. Granted, that's just speculation on my part, but if there are Hyundai stores losing money because they have limited fixed operations support, how does a Fiat dealer stand a chance?

Originally Posted by JoeRocket

Besides being a royal PITA, it makes me think that Fiat just wanted to piggyback into this market and might sell off the Chry/Jeep/Dodge once it's established.

I think Fiat and Chrysler are hopelessly intertwined at this point. I also believe in the final analysis (years from now) people will conclude that Fiat needed Chrysler a lot more than Chrysler needed Fiat.

That said, I think the demand for a separate Fiat dealer network will prove to be one of Marchionne's biggest mistakes and will provide lasting evidence that he surrounded himself with "yes-men" who simply told him what he wanted to hear. The irony is the same Chrysler executives who concluded it was smart to kill-off 789 OLDCO dealers are the same executives who agreed a separate Fiat dealer network was a great idea.

Sounds like Karma to me.....