This article is Step 7 Overview of Understanding Accounting Integration - Categories
To see all the steps of Understanding Accounting Integration, please review - Overview - Understanding Accounting Integration
Step 7 Overview - Categories
Categories are the method Blackpurl uses for mapping transactions to your accounting package
Categories tell all Blackpurl transactions what General Ledger accounts they should be using when they integrate into your accounting package
Please take the time to understand Categories as using Categories will be the key to a successful integration between Blackpurl and your accounting package
This video is a great overview and we would recommend that you take the time to watch it - QuickBooks Accounting Integration Video 6 of 9 - Blackpurl Categories
In the majority of cases how categories work can be summarised in a couple of simple points
- Depending on the type of category, you may need to assign 1, 2, or 3 General Ledger accounts to it - Income / COGS / Inventory
- Every Part, Labour Code, Sublet, Fee, Adjustment, Internal Expense, and Tax will need to have a category assigned to it
- As the category will determine which General Ledger Accounts will be affected when that Part, Labour Code, Sublet, Fee, Adjustment, Internal Expense, and Tax, etc is used in Blackpurl
- Categories are used to integrate both sales and purchases into your accounting package
- There are a few types of categories that will not be attached to a product
Example 1 - Adjustment Categories as they are used to define where you may wish to adjust inventory
Example 2 - Internal Expense categories are used to define how to allocate an internal expensed customer service job
Blackpurl will come with a basic default set of 9 categories (to cover all types of categories) which you can alter and also add additional categories going forward
To create a new Category:
- Click on
- Then select a Category Type
These are the types of Categories available for selection and which one you select will determine where it is used. For example - you can only use the Category Type: Part - on a Part Record
Explanation of Category Types:
Category Type | Description and Further Information |
Adjustment |
An adjustment category is what you would use when doing a Unit Cost Adjustment or Part Cost/Qty Adjustment This article will explain in further detail – Step 7A - Understanding Accounting Integration - Category Type: Adjustment
|
Fee |
A Fee category is what you would allocate when creating a Fee A Fee can be added to a Customer Order or to a Vendor Invoice This article will explain in further details - Step 7B - Understanding Accounting Integration - Category Type: Fee
|
Internal Expense | It is usually used in conjunction with Transaction Types for items that need to be expensed to Internal General Ledgers This article will explain in further details - Step 7C - Understanding Accounting Integration - Category Type - Internal |
Labor / Labour |
A Labor / Labour Category is what you would assign to your Labor / Labour codes or to relevant Transaction Types This article will explain in further details – Step 7D - Understanding Accounting Integration - Category Type: Labor / Labour
|
Miscellaneous | This is a category that you would assign to miscellaneous items |
Part |
A Part Category is assigned to individual Part Records What General Ledger accounts that are assigned to this category need to use when the Part with this Category is involved in an accounting entry ie Customer Order / Vendor Receiving This article will explain in further details – Step 7E - Understanding Accounting Integration - Category Type: Parts
|
Vendor Product |
This Category is assigned to Sublets, Warranty Plans, and Dealer Options in order to assign what General Ledger accounts are to be used when a Sublet, Warranty Plan, or Dealer Option is involved in an accounting entry ie adding a sublet to a Customer Order / Vendor Receiving a Sublet, etc This article will explain in further detail - Step 7F - Understanding Accounting Integration - Category Type: Vendor Product
|
Tax | This Category Type is used for Tax Collected and Tax Payable what are the relevant General Ledger accounts that you want to use in your accounting package This article will explain in further details - Step 7G - Understanding Accounting Integration - Category Type: Tax
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Unit | This Category Type is assigned to Stocked Units and what General Ledger Accounts you want to use in your accounting package when an accounting transaction needs to integrate This article will explain in further details - Step 7H - Understanding Accounting Integration - Category Type: Unit |
3. Once you have selected the Category Type, you will need to give a new Category a unique name
4. Now assign General Ledger accounts from your Chart of Accounts to the new Category
Depending on what Category Type you have selected will determine if you need to allocate an Income General Ledger / COGS General Ledger / Inventory General Ledger
Income General Ledger - needs to be Revenue or Income General Ledger accounts
COGS General Ledger accounts - need to be COGS General Ledger Accounts
Inventory General Ledger accounts
- If it is attached to a Parts Category or Unit Category, it will need to be Account Type: Current Asset General Ledger (not Inventory)
- If it is attached to a Sublet Category, it will be your accrual liability General Ledger