This article will explain Step 7A - what the Category Type: Adjustment is all about
Category Type: Adjustment
Adjustments are used for:
- Part - the dealership wishes to Increase or Decrease part stock quantities or costs outside of a Vendor Order process ie an adjustment in the parts record or via a part count/Stocktake
When doing these adjustments, you can assign an Adjustment Category to the transaction and this is how the adjustment will integrate into your accounting package and what General Ledgers they will impact
These articles will explain more about Stock / Cost Adjustments:
- Unit - stock adjustments are also used to adjust the cost pricing on Units ie for example there is a factory rebate given that reduces the cost price or an input error etc
When doing these adjustments, you can assign an Adjustment Category to the transaction and this is how the adjustment will integrate into your accounting package and what General Ledgers they will impact
This article will explain more about Cost Adjustments on Units - How to Process a Unit Cost Adjustment
As a default, your Blackpurl would have been set up with 1 x Adjustment Category but you can set up multiple adjustment type categories to suit your needs
For an Adjustment Category, you will only need to indicate the Income General Ledger - this General Ledger will be the offset when you do the adjustment on your parts and/or units with the other side being your Inventory General Ledger
If you have multiple Adjustment Categories, you will need to indicate which one is the default
Accounting Integration
Part Adjustment
- A parts adjustments would come over to your accounting package with a journal entry similar to:
Parts Inventory General Ledger (as per the Category assigned to the part being adjusted) with the offset to Adjustment General Ledger (as per what is set up on the Adjustment Category for Income General Ledger)
Which General Ledger would be debit or credit would depend on whether or not you are processing an increase or decrease of stock/increase or decrease of cost
For example:
Dealership processed a decrease in part quantity so the journal entry that would integrate from Blackpurl to your accounting package would be similar to:
Unit Stock Adjustments
- A Unit Stock adjustment would come over to your accounting package with a journal entry similar to:
Unit Inventory General Ledger (as per the Category assigned to the Unit being adjusted) with the offset to Adjustment General Ledger (as per what is set up on the Adjustment Category for Income General Ledger)
Which General Ledger would be debit or credit would depend on whether or not you are processing an increase or decrease in cost
For example:
Dealership processed a decrease in the cost of a Unit, so the journal entry that would integrate from Blackpurl to your accounting package would be similar to:
Quick Tip
If you are going to use a Unit Cost Adjustment to fix a keying in $ error when receiving the Unit into Stock, it is not what we would recommend as the Cost Adjustment will NOT alter the Vendor Invoice in your accounting package
We would suggest that you contact Blackpurl Support and then will alter the $ error for you
However, if you do wish to use the Cost Adjustment to fix a keying in $ figure error, you will need to go to the Vendor Invoice in your accounting package and Edit the Bill
Add a Line and process the amount of the cost adjustment using the Inventory Adjustment General Ledger account as the offset as you have already adjusted the Unit Inventory General Ledger account when you did the adjustment in Blackpurl.
Don’t forget to take into consideration any tax implications depending on the tax jurisdiction in your area on the manual change to your Vendor Invoice
The end result is that your Vendor Invoice is now as it should be, your inventory is correct and the entries to the BP Inventory adjustment match each other so no extra expense is recorded
