OVERVIEW OF ACCOUNTING INTEGRATION
Blackpurl should always be treated as the source of truth for the following items so all activity related to them should take place in Blackpurl:
- Part inventory management - inventory valuation, stock level adjustments, price and cost adjustments, categorization. Basically, if the accounting task in any way alters a part inventory General Ledger account it must be actioned in Blackpurl.
- Unit inventory management - inventory valuation, price & cost adjustments, categorization. Basically, if the accounting task in any way alters a unit inventory General Ledger account it must be actioned in Blackpurl.
- Customer invoicing - typical customer transactions are always processed through Blackpurl because they generally interact with inventories managed by Blackpurl. While there may be some miscellaneous charges applied to a customer outside of standard invoicing, unpaid AR finance charges for example, we strongly suggest that all charges and credits related to a customer be processed in Blackpurl to give you one place to go to for all customer transaction history.
- Part, Unit & Sublet ordering and receiving - as these activities alter the respective inventory General Ledgers, they must be actioned in Blackpurl
- Customer payments - payments received from customers, especially those tied to sales transactions are always processed in Blackpurl. The only exception to this is customer payments on account if you do not need those payments to form part of the cash reconciliation (undeposited funds) in Blackpurl
- Customer deposits - all funds received from customers as deposits on orders they've placed are always actioned in Blackpurl as they are tied to the transactions which will eventually be invoiced to the customer.
- Customers and Vendors - all customers and vendors used in any of the above should always be managed in Blackpurl. Modifying names, addresses, etc of these records should always be done in Blackpurl which will automatically generate the same updates in the accounting application. Changes made to these directly in the accounting application are not reflected back into Blackpurl.
- Sales and COGS - As these revenue and direct cost accounts are closely tied customer invoicing you should always avoid altering these GL accounts directly in the accounting application. Failing to do so will cause discrepancies between sales reporting in Blackpurl and revenues reporting in the accounting application.
Please note - If the dealership elects to manually change a Blackpurl created transaction in their accounting package, it will NOT reflect or sync back to Blackpurl.
- Cash reconciliation
Customer payments processed in Blackpurl always affect two General Ledgers which are Customer Deposits and Undeposited Funds. Cash reconciliation in Blackpurl is a tool for verifying the entries in Blackpurl to the physical payments received ie: cash counted, debit/credit machine reports.
Blackpurl does not handle any of the entries to the actual bank accounts as all Blackpurl payments flow through the Undeposited Funds GL. Entries to record the actual depositing of these funds into the bank account is handled strictly in the accounting application. Further information regarding the Undeposited funds can be found here - Undeposited Funds General Ledger - Blackpurl and Accounting Package (Xero and QuickBooks)
- Vendor Invoices
Other vendor invoicing such as Third-party claims (Insurance or Warranty) and Lien Payouts (Trade In Units) are also generated by Blackpurl. All other typical vendor invoicing such as utilities, taxes etc are unrelated to Blackpurl and should be therefore handled directly in the accounting application.
Costs related to vendor products sold in Blackpurl, such as warranty plans and financing products, make use of accrual/clearing accounts as they do not automatically generate the AP invoice in the accounting application.
- Labor Costing
Accounting entries for payroll are handled in the accounting application as an expense (debit) to a wages account. Blackpurl then offsets(credits) its labor COGS entry against the Applied Wages expense account. The only difference between the two costing methods Blackpurl uses is when that credit to the expense occurs. In the simple method it occurs at time of invoicing the labor while in the other method it is recorded when technician job clocking entries are made.
- Undeposited Funds
All payments received through Customer Orders (both Checkout and through Deposit sections) will automatically go through the Undeposited GL that are set up in your Accounting Integration > Undeposited Funds