This article will explain Step 7E and Category Type: Parts


Category Type - Parts

This category is assigned to individual Part Records in order to assign what General Ledger accounts to be used when the Part with this Category is involved in an accounting entry ie Customer Order / Vendor Receiving

As a default, your Blackpurl would have been set up with 1 x Part Category but you can have more than one Part Category 


These additional Part Categories can all be directed to the same General Ledgers in your accounting package or each Category can be assigned different General Ledgers in your accounting package depending on your business’ needs  


Here is an example of setting up a Parts Category and what you will be required to indicate:

  • Name

simply the name of this category.  In this example - the name of the category is Part Sales


  • Income General Ledger 

when you sell a part that has this category, the income will integrate to this General Ledger 


  • COGS General Ledger

when you sell a part that has this category, the COGS will integrate to this General Ledger 


  • Inventory General Ledger

when you sell a part that has this category, the Inventory will integrate to this General Ledger

when you purchase a part that has this category, the Inventory will integrate to this General Ledger 



This is now a full example of what happens:

  • Create a Category or use one that is already setup 
  • Assign that Category to the relevant Part records 



  • When the Dealership sells that part on a Customer Order and it is invoiced out, this is what will integrate into your accounting package - Note that the Income / COGS / Inventory for this transaction is what has been set up on your Category


This is the Invoice side of it:



This is the COGS and Inventory side of it:



  • When the Dealership processes a Vendor Receiving for that particular part, again it will follow the category attached to the Part to say what General Ledger it uses to post the Inventory value to in your accounting package


Example of Vendor Receiving - note the Inventory General Ledger it uses, matches what the category on the part indicates:

Tips


  • Dealerships can have more than one Category directed to the same General Ledger Accounts


For example:


Dealership may want to set up separate categories for Merchandise sales so that you can report on merchandise sales separately to your Parts sales in Blackpurl

However, the Dealership may just wish to keep the accounting integration very simple and have only one Part Category 

  • Dealership can have more than one Parts Category and each category can be directed to different General Ledger Accounts 


For example:


The Dealership may have to report to a specific Supplier as to how much $$ they have sold of their product from their accounting package

The Dealership would set up a separate Income General Ledger / COGS General Ledger / Inventory specific to that Supplier 


The Dealership would then create a new Category just for that Supplier and assign the specific Income / COGS / Inventory General Ledgers


The Dealership would then assign that Category to the relevant Parts associated with that Supplier  


  • Here’s a link to a video with a brief overview of how Categories work.

QuickBooks Accounting Integration Video 7 of 9 - How do Categories work in Blackpurl


  • We would recommend that you keep your categories as simple as possible