This article will give the Dealership some direction on how they need to handle the entering of their Opening Balances / Conversion Balances into their new Accounting Package (QuickBooks Online / Xero)

There is two sections to this article - please follow the section that your Dealership falls into: 


  • Section 1 - New Dealership with no previous Accounting Package

  • Section 2 - Dealership with a previous Accounting Package 


Section 1 - New Dealership with no previous Accounting Package 


If you are a totally new Dealership then you will not have any Opening Balances / Conversion Balances from an old Accounting Package

IF the Dealership has not provided a list of Unit Inventory and/or Parts Inventory for importing into Blackpurl then no further action is required 


IF the Dealership has provided a list of Units Inventory and/or Parts Inventory for importing into Blackpurl then the value of these Unit Inventory and/or Parts Inventory would then form the starting Inventory values in Blackpurl


Blackpurl Activations would have entered these Inventory values from Blackpurl in your QuickBooks Online / Xero against the relevant Inventory General Ledgers and will email the Dealership to let you know what they have journaled 


Section 2 - Dealership with Previous Accounting Package


If you are starting Blackpurl with a new Accounting Package ie QuickBooks Online or Xero but has also been using a previous Accounting Package then this section is for you



Blackpurl - Opening Balances for Unit Inventory and Parts Inventory  


As part of the Blackpurl Activation process, the Dealership would have provided a list of Units Inventory and/or Parts Inventory for importing into Blackpurl 


The value of these Unit Inventory and/or Parts Inventory would then form the starting Inventory values in Blackpurl


Blackpurl Activations would have entered these Inventory value from Blackpurl in your QuickBooks Online / Xero against the relevant Inventory General Ledgers 


Ideally, these Inventory figures should match to the Inventory figures in your previous Accounting Package but if they don't then your accountant will need to do an adjustment entry in your new Accounting Package 


This article will explain further what Blackpurl Activation has completed on behalf of the Dealership - Opening Balances - Unit Inventory and Parts Inventory



Dealership - all other Opening Balance / Conversion Balances


Overview 


It is the responsibility of the Dealership to enter all other Opening Balances / Conversion Balances from their old Accounting Package into their new QuickBooks Online / Xero during activation or shortly thereafter 


If you need further instructions or assistance, we would suggest that you reach out to your accountant / bookkeeper and/or make use of the resources provided by QuickBooks Online / Xero:





What are Opening Balances / Conversion Balances


If you are starting Blackpurl with a new Accounting Package ie QuickBooks Online or Xero then you will need to know the closing or the last balance from your old Accounting Package


These closing or last balances will then be your Opening  Balances / Conversion Balances that will need to be entered into your new QuickBooks Online or Xero


This is a very important task as you want a clear unbroken set of accounting figures from your old Accounting Package over to your new Accounting Package 


Why is entering Opening Balances / Conversion Balances the responsibility of the Dealership


Blackpurl are not accountants nor are we QuickBooks Online or Xero support


We can show you how the accounting integration from Blackpurl works but Opening Balances / Conversion Balances is not part of the Blackpurl Integration or Blackpurl Activations


This is where we would recommend that the Dealership get their accountant involved, just in case any adjustments are needed to be made etc at the time of entering your Opening Balances / Conversion Balances



Where to start


We would suggest that before you start to load the Opening Balances / Conversion Balances to the appropriate General Ledger account(s), you get the closing balances from your old Accounting Package


You do this by running a full balance sheet / profit and loss statement / trial balance from your old Accounting Package that shows the closing balances 


It is also recommended that you run a full Accounts Payable listing and a full Accounts Receivable listing from your old Accounting Package 


Then review the relevant resources from Xero / QuickBooks Online to get yourself familiar with what you need to do:  





Other Recommendations


There will be a couple of General Ledger Opening Balances / Conversion Balances that we would recommend that you load a little bit differently:  


Accounts receivable

  • Load the Accounts Receivable Opening Balance / Conversion Balance total into a clearing account


  • then load individual Account balances (completed and finalized invoices awaiting payment not to be confused with open jobs or orders) directly to the customer using the same clearing account GL to load the invoice


  • This process will clear the clearing account, load the outstanding amount owed by the customer and create the Accounts Receivable balance in your Accounting Package


Accounts Payable 

  • Load the Accounts Payable Opening Balance / Conversion Balance total into a clearing account 


  • then load individual Account balances (completed and finalized invoices awaiting payment not to be confused with open jobs or orders) directly to the Vendors using the same clearing account GL to load the outstanding invoice


  • This process will clear the clearing account, load the outstanding amount owed to the Vendor and create the Accounts Payable balance in your Accounting Package

Customer Deposits


This is usually discussed with your Blackpurl Activation Specialist so that the Dealership is clear on what options are available regarding Customer Deposits:


  • Option 1
    Load the deposit to the customer in your Accounting Package via Accounts Receivable Opening Balance and then use the AR Credit Payment Method button in Blackpurl to apply the deposit to the Customer Order (CO)


This article will assist with the Blackpurl side of it - Payment Method - AR Credit (Accounts Receivable Credit in Accounting Package)

  • Option 2
    Load the deposit directly into Blackpurl on the relevant Customer Orders. You would then need to go to your Accounting Package and remove the deposit from the undeposited funds account and offset it against the GL the deposits are currently sitting in in QBO perhaps the Clearing account you are using for the Accounts Receivable


Parts Inventory and Unit Inventory 

  • Based on the information that the Dealership has provided, the Blackpurl Activation Team would have entered these opening balances for the Dealership in their new Accounting Package under the relevant Inventory General Ledgers

    Your Blackpurl Activation team would have provided you with an email with the relevant amounts and what General Ledgers they posted against

  • In theory, these Inventory values should match your Inventory General Ledgers from your old Accounting Package  

    If they do not match, then it is the responsibility of the Dealership or their accountant to do any adjustment entries to ensure that all Inventory General Ledgers balance out to what the balance is in Blackpurl