Job profitability

Parts on the Truck: Inventory Cost That Never Hits the Invoice

Van stock is working capital sitting in a parking lot. Dead SKUs, wrong capacitors, and "I just grabbed one" parts that never hit the invoice make jobs look more profitable than they were. The P&L eventually shows a materials blow-up. Job costing never will unless you track the truck.

Where the money goes

  • Unbilled usage — fittings, wire, chemicals used but not on the ticket
  • Wrong parts — bought for a guess, returned late or never
  • Dead stock — seasonal leftovers and obsolete models
  • Shrinkage — no scan, no count, no owner

A minimum system that works

  1. Define a par list per truck (fast movers only).
  2. Every part off the van is a line on the job or a documented warranty/callback.
  3. Weekly restock from a pick list, not a supply-house wander.
  4. Quarterly count: anything not used in 90 days leaves the truck or gets written down.

Put inventory into job cost when it matters

For a typical service call, missing a $4 fitting is small. Missing a $180 module is not. When you cost a job in the calculator, use actual materials that left the truck — not just the supply-house invoice for that day. Otherwise you are costing a fantasy ticket.

Cash tied up is a margin tax

$8,000 of slow van inventory is money you cannot use for payroll or another tech. Restocking "just in case" feels like customer service. It is often unpriced insurance. Keep emergency SKUs tight and order the rest to the job.

Frequently asked questions

How does truck inventory eat margin?

Dead stock, wrong parts, and grab-from-the-truck waste never hit the invoice but still sit in cash and space.

What should I track on the van?

Turns, shrinkage, and parts used vs billed. If it left the shelf and did not land on a ticket, it is a leak.

Is this the same as material markup?

No. Markup is how you price parts you sell. Truck inventory is the cost of what you carry and waste before anyone is billed.

Cost the job with real parts

Enter what actually left the truck in the free calculator so van stock cannot hide inside a "winning" ticket.

Open the free calculator