This article will take you through adding Deal Financing to a Customer Order > Unit Deal and also how to pay with financing


Setting up your Finance Providers

  • Your Finance Providers will need to be set up so that they are available for selection

This needs to be only done once and then the Finance Providers will be available across all 

Customer Orders at all times. 

This is the link to the relevant article that will show you how to set up your Financial Providers

 - How to Setup Vendor Products and Services

Accounting Integration

  • For our Dealerships that have Accounting Integration, there are two control accounts that have been 

added to the System Settings > Accounting Integration - Control Accounts 

Finance Commission Income

To be able to record the income from Financing Commissions earned

Finance Commission Clearing 

This is a clearing account for financing commissions which is used when the commissions are not

included in the payment from the finance company for the deal

Finance Payment includes the Dealership's Commission

Dealerships also have the option to include the Commissions earned from the finance company as part of 

the expected payment from the finance company to be processed in Blackpurl 

System Settings > Settings & Controls - Shop Settings allows you to enable this feature

If only some of the finance companies include their commissions in their payments while others pay it out

separately, the Dealership can disabled the setting for the relevant Vendors by a new option in the Products

& Services settings in a Vendor record

Navigate to the relevant Vendor Record > Edit and review Commissions not included in finance payments

How to Add Financing to a Unit Deal

We would recommend that you set up the Customer Order > Unit Deal - add the unit/options/pricing etc 

Then add the Deal Financing to the Customer Order > Unit Deal by clicking > 

User-added image

The user would need to select the relevant Finance Provider 

User-added image

and then complete the relevant fields

Add any F&I Products etc and then check all your figures before you submit to your Financier 

How to Receive Financing Funds onto a Unit Deal

Once the Dealership knows that the finance funds have been received into their bank account, the 

Dealership can receive the funds using the Payment Method - Financing in either the Deposit section 

or the Checkout section

Depending on how your Blackpurl is set up (you are receiving all the funds including Commission earned or 

you only receive the funds required for finance) will depend on the amount checkout will require

Accounting Integration Tips

  • When these finance funds are received into the Dealership's bank account, in your accounting 

package you will need to allocate these funds to the General Ledger that is attached to the 

Payment Method - Financing 

For example, in our test environment, the General Ledger that is attached to Undeposited Finance

is Undeposited funds General Ledger 

Further information

Buy rate vs Sell rate

Users now have the ability to enter their buy rate commission alongside their sell rate

Dealerships can have a “Buy Rate Commission” with each financer provider that represents the minimum rate the

finance company will accept

The Dealership can mark up that rate by an agreed upon amount which is known as the “Sell Rate,” 

and it is the rate that Blackpurl will use for calculating the customer's amount financed

In the deal financing summary, two interest rates will now be exposed with the "Buy Rate Commission" being optional

This "Buy Rate Commission" is calculated as the difference in total loan interest between the two rates

The Dealership can optionally override the calculated "Buy Rate Commission" and Blackpurl will only

recalculate this commission amount whenever the "Buy Rate Commission" is changed or the estimated

loan payment amount changes

This commission will be included in the profitability of the deal

Deal commissions on reports

Our unit deal-related reports can now report two types of commissions for each deal when the user 

has the Deal commissions permission enabled

Sales commission - which is the commission paid to salespeople

Finance commissions - which are commissions earned by the Dealership for financing the deal

Dealership will be able to report these Commissions as optional columns on the following reports:

  • Active Unit Deals report

  • Invoice Summary report

  • Invoice Detail report

Example of the optional columns on the Active Unit Deals report:

Both of these commissions will also be properly accounted for in the deal profitability on the Customer 

Order itself

Editable costs on F&I products on deals

When working with line items in the F&I products section of a deal that have a cost associated with them, 

the user can now edit the cost on these line items

For this functionality to be available the user must have the Unit Costs permission enabled

Any changes to these costs will be properly accounted for in the deal profitability on the Customer Order


F&I products from other companies

User can select F&I products from other finance company vendors

When a product from a different vendor is listed in the F&I products of deal financing it will clearly 

indicate which ones are from other finance company vendors

The only exception to this is for products with a cost method of Price withheld or Cost withheld

Since they are specific to that vendor we will not allow them to be added to a deal being financed by

another finance company

Finance products - New cost methods

There are two new cost methods on Finance products in order to provide a more accurate amount payable

by the finance company

Quite often the amount the finance company will pay to the Dealership is different from what is calculated 

as the Amount Financed on the deal

The price of some products is not reimbursed by the finance company while for others they may hold 

back the cost of the product

To facilitate this Financing products now have two new cost methods - Price withheld and Cost withheld

Now when we calculate the expected payment from the finance company, we will deduct from the amount

financed either the price or the cost of the product

A loan registration fee is an example of a Price withheld product.  A financing product which the same

finance company provides for the Dealership to resell could have the cost of that product withheld from the

finance company's payment to the Dealership

The withheld type of financing products can only be added to deals that are financed by that same finance company

This is an example of different finance products with different Cost Methods 

Finance company payments on customer order

Now that we can accurately calculate what the actual payment from the finance company will be by taking

into account not only the amount financed but also any F&I product prices or cost they may not pay back to

the Dealership or any financing commissions being included in the expected payment amount, we will no

longer allow the user to enter the amount received from them because it is now a known value

The payment method will still be available in order to record the payment being received but the amount of

that payment will be auto-populated and restricted to the known amount payable to the Dealership from the finance company

Financed deals in Checkout

A number of updates have been made to checkout for financed deals:

  • You will now be shown how much is due from either the customer or the finance company

  • When the Use Deposits payment method is used it will automatically apply any deposits which 

 were payments from the finance company

  • For the finance company payment method, the system will dictate the amount the true amount due

from them

  • The charge-on-account payment method will only work with amounts due from the customer

  • Deposits made against the deal must be used in checkout prior to being able to use the charge on account payment method

  • For all other payment methods, they will only work in relation to the amount owing from the customer and the user will not be allowed to enter an amount greater than what the customer owes

  • Checkout cannot be finalized until payment in full is recorded from both the customer and the finance company and all deposits against the deal have been used

Financed deal accounting entries

The COGS journal entry for the deal invoice will take care of properly accounting for any prices or costs which were withheld by the finance company

It will also take care of properly accounting for the financing commission income recorded on the deal financing

Here is an example of a financed deal that has both withheld F&I products AND Financing commissions ARE included in the payment from the finance company

And here is how this is reflected in all of the accounting entries for the deal

And here is the same example except but now the Financing commissions ARE NOT included in the payment from the finance company.  So the Deal invoice COGS JE will make use of the new Finance Commission Clearing control account

NOTE - If a GL account has not been assigned to either the Finance Commission Income or Finance Commission Clearing control accounts, the entries for the commission income will not be included in the journal entry

Financed deal documents

In the three different documents that can be generated for a financed deal a few changes have been implemented

These documents are the Bill of Sale, Offer to Purchase, and the Invoice

  • The payment listing on these documents will now only include customer-related payments

Finance company payments will not be included in this listing

  • The Amount Paid total will now only reflect the actual amount paid by the customer

  • The Due from Financing will never reflect the actual amount that is being received so it doesn’t reflect any commissions earned or product prices/costs that are withheld

New “Funded” status

A new status has been introduced for the financing section of financed deals called “Funded”

Now the different status values for the financing section are:  Quotation, Submitted, Approved, and then once the funds have been receiving onto the Customer Order - the last status is Funded

This “Funded” status will be automatically set when the finance company payment is accepted against the deal

To reset the status of the section the payment from the finance company would have to be reversed out

Once payment has been received from the finance company the user will no longer be able to modify the contents of the financing section just like when the status is Approved

Unit Deal status restrictions

The following restrictions are now in place:

  • Financing cannot be set to Approved unless the Unit deal has already been set to Approved

  • Once financing has been approved or funded the status of the deal itself cannot be changed away 

  from being Approved

  • For approved deals, restrictions will also be placed on the deal merch/service to ensure that the deal values do not get inadvertently modified.  These restrictions are: 

    • line items cannot be added, deleted or moved

    • Line item quantities cannot be changed

  • Deal status cannot be set to Approved when there are unresolved fulfillments

  • Deal status cannot be set away from being Approved if the deal financing status is Approved or Funded