Floor plan reconciliation workflow

A floor plan is a method of financing between you, the manufacturer from whom you purchase goods, and a third-party finance company.

Floor plans require setups in the System Administrator, Product, and Vendor modules.

See Setups for floor plans.

After you complete the required setups, you are ready to process invoices for floor planned products that you sell. This process starts with the purchase order you create to obtain the floor planned product from your vendor. All floor planned invoices must be costed against a purchase order in Vendor Invoice Center Entry. The purchase order must be received in Purchase Receipt of Inventory Entry.

We recommend that when you cost a floor planned purchase order against the invoice in Vendor Invoice Center Entry, that you cost all quantities sold at one time. If you need to cost the same purchase order line multiple times, and you assign serial numbers to your floor plan products, it is not possible to know what specific serial numbers have been sold and costed on a single invoice. During Vendor Floor Plan Acceptance Entry you select only the invoices you are ready to pay, even though all serial numbers are present on all invoices from the vendor.

Only one scheduled payment is created when a floor plan invoice is initially entered in Vendor Invoice Center Entry. As products are sold and payment to the finance company is due, the original scheduled payment (with a sequence number of ‘001’) is split into multiple scheduled payments and then inactivated.

Depending upon the floor plan agreement with your vendor or finance company, you may be required to pay for floor planned products by an expiration date or pay interest on the amount due. Use the Vendor Entry Payment Action Report to identify the floor planned products ready for payment. This includes those items that have been sold and any stocked items in a floor plan that has expired. When you run the report in Create mode, records are created in an internal APEMF file. APEMF records with a quantity greater than zero become permanent scheduled payments.

When you are ready to accept the APEMF records and mark them for payment in Vendor Invoice Center Entry, use Vendor Floor Plan Acceptance Entry.