Frequently Asked Questions About Inventory Control, Parts Tracking, And Purchasing

The Inventory system in MLS 2026 is designed to:

•Track stocking and non-stocking parts

•Monitor profitability

•Control purchasing

•Reduce losses

•Speed workorder entry

•Improve reporting accuracy

Accurate inventory procedures are essential for maintaining profitability and operational efficiency.

Inventory Basics

What is the difference between a Stocking and Non-Stocking part?

Stocking Part:

•Physically kept in inventory

•Quantity is tracked

•Removed automatically when sold

Non-Stocking Part:

•Not normally kept on shelves

•Usually special ordered

•Sales totals still tracked

•Quantity on hand usually remains zero

Why track non-stocking parts?

Tracking non-stocking parts allows:

•Profit analysis

•Vendor history

•Warranty tracking

•Sales reporting

•Future stocking decisions

Why is inventory control important?

Poor inventory control causes:

•Lost profits

•Duplicate purchases

•Missing parts

•Incorrect pricing

•Delayed repairs

•Reduced technician productivity

Good inventory systems increase profitability.

Adding Inventory Items

What information should always be entered for a part?

Always include:

•Part number

•Description

•Vendor

•Cost

•Selling price

•Tax status

•Department

•Location code

Why should I use the ACTUAL part number?

Always use the manufacturer’s actual part number.

Do NOT substitute:

•OEM numbers

•“Shop codes”

•Made-up abbreviations

This prevents:

•Warranty confusion

•Incorrect ordering

•Tracking problems

Why are location codes important?

Location codes:

•Speed parts retrieval

•Reduce technician downtime

•Prevent duplicate purchases

•Improve organization

A part you cannot locate is effectively out of stock.

Searching Inventory

How do I search for parts?

You may search by:

•Part number

•Description

•Cross reference

•Barcode

•Vendor number

What are Cross References?

Cross references allow alternate search terms.

Examples:

•Tire sizes

•Alternate manufacturer numbers

•Industry interchange numbers

Why use Cross References?

Cross references:

•Speed searching

•Simplify substitutions

•Help technicians find compatible parts

Pricing

How many price levels does MLS support?

MLS supports:

•Retail

•Levels 1–4 wholesale/discount pricing

Total:

5 pricing levels

Why use pricing levels instead of discounts?

Pricing levels:

•Maintain accurate profitability reporting

•Preserve margin analysis

•Improve financial accuracy

Global discounts distort reporting.

Can different items use different price levels?

Yes.

One workorder may contain:

•Retail parts

•Wholesale labor

•Fleet pricing

•Custom pricing

Inventory Quantities

What happens when I sell a stocking part?

MLS automatically:

•Reduces stock quantity

•Updates sales totals

•Tracks profitability

•Updates usage history

Can inventory quantities go negative?

Yes.

Negative inventory may occur when:

•Parts are sold before receipt

•Quantities were entered incorrectly

•Emergency purchases occur

MLS allows negative quantities intentionally.

Is negative inventory bad?

Occasional negative inventory is acceptable.

However, large or recurring negatives usually indicate:

•Receiving errors

•Missing purchase entries

•Unbilled parts

•Theft

•Poor inventory control

Editing Inventory

Can I edit part descriptions on workorders?

Yes.

Changes affect ONLY the workorder entry.

The master inventory description remains unchanged.

Why should I avoid abbreviations?

Abbreviations:

•Confuse clients

•Cause misunderstandings

•Look unprofessional

Clear descriptions improve customer confidence.

Inventory Adjustments

Why would inventory need adjustment?

Adjustments may be required because of:

•Physical counts

•Damaged parts

•Lost items

•Vendor shortages

•Entry errors

What causes inventory inaccuracies most often?

Common causes:

•Failure to bill parts

•Incorrect quantities

•Unrecorded purchases

•Employee theft

•Manual adjustments

•Changing part numbers improperly

Why should employees be accountable for missing inventory?

Accountability reduces:

•Carelessness

•Waste

•Theft

•Untracked usage

Inventory loss directly reduces profits.

Purchase Orders

Why use Purchase Orders?

Purchase Orders:

•Track ordered parts

•Improve receiving accuracy

•Help warranty tracking

•Control purchasing

•Prevent duplicate orders

Can special order items be linked to purchase orders?

Yes.

MLS can:

•Prompt for open POs

•Add items automatically

•Link purchases directly to workorders

Why is this useful?

It improves:

•Cost tracking

•Vendor accountability

•Warranty management

•Inventory accuracy

Receiving Inventory

Why is receiving inventory important?

Receiving:

•Updates quantities

•Corrects negative inventory

•Updates costs

•Confirms deliveries

Failure to receive inventory properly creates incorrect stock balances.

What should always be checked during receiving?

Verify:

•Quantity received

•Part numbers

•Cost

•Damaged items

•Core charges

Core Tracking

What is a Core?

A core is a reusable component returned for credit.

Examples:

•Alternators

•Starters

•Brake components

•Transmissions

How does MLS track cores?

MLS tracks:

•Cores used

•Cores returned

•Core charges

•Outstanding cores

What happens if a core is not returned?

MLS automatically applies the core charge to the invoice.

Why are core charges important?

Failure to track cores causes:

•Lost reimbursements

•Reduced profitability

•Vendor disputes

Environmental Fees

What is the Environmental Fee?

Environmental Fees recover costs related to:

•Hazardous waste handling

•Disposal equipment

•Labor handling waste

•Regulatory compliance

Why should environmental fees be charged?

Disposal costs include:

•Equipment

•Labor

•Storage

•Transportation

•Vendor disposal charges

These are legitimate operational expenses.

Barcoding

Can MLS use barcode scanners?

Yes.

Barcode scanning:

•Speeds parts entry

•Reduces typing errors

•Improves accuracy

Can multiple parts be scanned together?

Yes.

The Scan utility allows batch scanning.

Pick Lists And Kits

What is a Pick List?

A Pick List is a predefined group of parts.

Examples:

•Oil service package

•Brake package

•Tune-up package

Why use Pick Lists?

Pick Lists:

•Save time

•Improve consistency

•Reduce missed parts

•Standardize services

What is a Kit?

A Kit combines:

•Labor

•Parts

•Pricing structures

For commonly repeated services.

Why are Kits useful?

Kits:

•Speed workorder creation

•Improve consistency

•Reduce errors

•Simplify pricing

Inventory Reports

Which inventory reports are most important?

Important reports include:

•Parts Sales

•Inventory Valuation

•Parts Utilization

•Negative Inventory

•Purchase History

•Vendor Reports

Why run Parts Sales reports monthly?

Monthly reports help identify:

•Fast-moving items

•Slow-moving inventory

•Profit trends

•Stocking needs

Why review non-stocked items sold frequently?

Frequently sold non-stocked items should often become stocking items.

This improves:

•Profit margins

•Repair speed

•Customer service

Warranty Tracking

Why assign vendors to parts?

Vendor assignment helps:

•Process warranties

•Track failures

•Identify supplier problems

•Process returns quickly

Should vendor invoices or PO numbers be recorded?

Yes.

Especially for:

•Expensive parts

•Warranty-sensitive components

•Sublet purchases

Physical Inventory

Why perform physical inventory counts?

Physical counts verify:

•Actual stock

•Missing parts

•Incorrect balances

•Shrinkage

How often should inventory be counted?

Recommended:

•Small cycle counts weekly

•Major inventory counts periodically

Regular counting prevents major discrepancies.

Common Inventory Mistakes

What are the most common inventory mistakes?

1. Changing part numbers instead of deleting entries

This corrupts tracking and restocking.

2. Forgetting to save entries

Unsaved data is lost.

3. Using abbreviations

Creates confusion and poor professionalism.

4. Ignoring negative inventory

Negative quantities should be investigated.

5. Failing to receive inventory

Quantities never correct themselves automatically.

6. Not assigning vendors

Makes warranty tracking difficult.

7. Poor location coding

Technicians waste time searching for parts.

8. Stocking rarely used items

Ties up unnecessary cash.

9. Not reviewing sales reports

Prevents smart purchasing decisions.

10. Allowing uncontrolled inventory access

Untracked inventory usage destroys profitability.

Best Practices

What are the keys to successful inventory management?

Successful shops:

•Track all parts accurately

•Use proper part numbers

•Perform regular inventory reviews

•Monitor profitability

•Use Pick Lists and Kits

•Hold employees accountable

•Maintain organized storage

•Review reports consistently

Inventory control is one of the largest contributors to overall shop profitability.