---
title: Parts with Core Values and Accounting
description: How and when the dollar amounts of a Part and its Core Value impact the Parts Inventory and Accounting within the system and what is done automatically and manually.
---
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October 8, 2025
# Parts with Core Values and Accounting
## How and when the dollar amounts of a Part and its Core Value impact the Parts Inventory and Accounting within the system and what is done automatically and manually.
When parts are bought, sold, or returned, their dollar amounts (especially the part cost and core value) can affect both the inventory and the accounting records. It’s important to understand how these values move through the system and who is responsible for each step.
This article explains the process, showing what happens automatically and what needs to be done by hand to ensure accuracy between the Parts Department and Accounting.
#### **The areas in Accounting where this can take place:**
#### **The area in Parts where this will take place:**
### **Understanding the Process**
- Parts Inventory: Tracks the total value of parts physically in stock.
- Used Core Value: Holds the value of returned cores until they are sent back to the vendor.
- Accounting Parts Inventory Account: Reflects financial adjustments when transactions occur.
*For clarity, we will use simple dollar amounts in this example.*
#### **Step 1: Initial Inventory Balances**
Before any transactions occur, inventory balances are as follows:
| **Category** | **Amount** |
| --- | --- |
| Accounting Parts Inventory Account | $100,000 |
| Parts Dept Inventory | $100,000 |
| Used Core Value (Parts Dept) | $0 |
| Total Parts Dept Inventory Value | $100,000 |
#### **Step 2: Ordering and Receiving a Part**
- Parts Dept places an order for a part with a cost of $1,000 and a Core Charge of $250.
- Upon receipt, the system updates the Parts Inventory values.
- At this point, nothing happens in Accounting.
| **Category** | **Amount** |
| --- | --- |
| Accounting Parts Inventory Account | $100,000 |
| Parts Dept Inventory | $101,250 |
| Used Core Value (Parts Dept) | $0 |
| Total Parts Dept Inventory Value | $101,250 |
#### **Step 3: Invoice Posting by Accounting**
- Accounting records the vendor invoice to match the parts received.
- Either by a Manual GL entry or a Purchase Order, created at the time the Parts Order was placed, the cost is posted directly to the Parts Inventory Account.
| **Category** | **Amount** |
| --- | --- |
| Accounting Parts Inventory Account | $101,250 |
| Parts Dept Inventory | $101,250 |
| Used Core Value (Parts Dept) | $0 |
| Total Parts Dept Inventory Value | $101,250 |
#### **Step 4: Selling the Part and Receiving a Used Core**
- Parts Dept sells the part and takes in the customer’s old part as a core return.
When the Invoice is Closed:
- The $1,000 part cost is removed from the Parts Inventory.
- The $250 Core Charge is moved to the Used Core Value category.
- The Parts Inventory account number in Accounting is reduced by the $1,000 part cost.
| **Category** | **Amount** |
| --- | --- |
| Accounting Parts Inventory Account | $100,250 |
| Parts Dept Inventory | $100,000 |
| Used Core Value (Parts Dept) | $250 |
| Total Parts Dept Inventory Value | $100,250 |
#### **Step 5: Returning the Used Core**
- The Parts Dept processes a core return to the vendor.
- The $250 Core Charge is removed from the Used Core Value.
| **Category** | **Amount** |
| --- | --- |
| Accounting Parts Inventory Account | $100,250 |
| Parts Dept Inventory | $100,000 |
| Used Core Value (Parts Dept) | $0 |
| Total Parts Dept Inventory Value | $100,000 |
#### **Step 6: Accounting Receives the Core Credit**
- Accounting processes the vendor credit for the core return.
- The Accounting Parts Inventory Account returns to its original balance.
| **Category** | **Amount** |
| --- | --- |
| Accounting Parts Inventory Account | $100,000 |
| Parts Dept Inventory | $100,000 |
| Used Core Value (Parts Dept) | $0 |
| Total Parts Dept Inventory Value | $100,000 |
---
### **Key Takeaways**
- Parts Inventory Updates in Real-Time: When a part is received, sold, or returned, the system automatically updates the balances.
- Core Value Moves Between Categories: When a used core is taken in, its value shifts from Parts Inventory to Used Core Value.
- Accounting’s Role:
- - Manually posts invoices when vendor parts are received.
- - Processes credits for core returns.
- System Integrity: Ensuring accurate postings prevents discrepancies between Parts and Accounting.
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- [F&I Deal Process](https://help.dominiondms.com/en/knowledge/podcasts-and-videocasts?hsLang=en#fi-deal-process)
- [Payroll](https://help.dominiondms.com/en/knowledge/podcasts-and-videocasts?hsLang=en#payroll)
- [Retail and Fleet Management](https://help.dominiondms.com/en/knowledge/podcasts-and-videocasts?hsLang=en#retail-and-fleet-management)
- [Digital Retail](https://help.dominiondms.com/en/knowledge/podcasts-and-videocasts?hsLang=en#digital-retail)
- [Credit Bureaus](https://help.dominiondms.com/en/knowledge/podcasts-and-videocasts?hsLang=en#credit-bureaus)
- [eContracting](https://help.dominiondms.com/en/knowledge/podcasts-and-videocasts?hsLang=en#econtracting)
- [Marketing](https://help.dominiondms.com/en/knowledge/podcasts-and-videocasts?hsLang=en#marketing)
- [Payment Processing](https://help.dominiondms.com/en/knowledge/podcasts-and-videocasts?hsLang=en#payment-processing)
- [Registration and Titling](https://help.dominiondms.com/en/knowledge/podcasts-and-videocasts?hsLang=en#registration-and-titling)
- [Recent Enhancements](https://help.dominiondms.com/en/knowledge/recent-enhancements?hsLang=en#main-content)
- [VUE Software Updates](https://help.dominiondms.com/en/knowledge/recent-enhancements?hsLang=en#vue-software-updates)
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