This article will go through why setting the opening balance for your Unit Inventory and Parts Inventory in your accounting package with the figures given to you by your Activation Specialist at the time of launch is a crucial step


Before loading your opening balances we strongly recommend you consult your accountant if you choose to load your opening balances using the below process as this process may not be right for you


Why is it Important


This will ensure that the balance of your Unit Inventory and Part Inventory General Ledgers in your accounting package match the data valuation that was imported into your Blackpurl at activations from the data you provided to us


This will mean at the time of activations the relevant Unit Inventory and Part Inventory General Ledgers and Blackpurl will match


QuickBooks Online 


The examples below are for the accounting package - QuickBooks Online 


Here is a video showing Sample of how you could load Opening Balances in QBO:



QBO opening balances tutorial video



What information will be provided to the Dealership


At the time of launch, your Activation Specialist will provide you with an opening balance summary for your Unit Inventory and Part Inventory that may look similar to this example:


BP CategoryQBO GLDebitsCreditsDescription
Parts Sales1300.bp BP Parts Inventory$125,986.25Opening Balance
New Units Sales1310.bp BP New Unit Inventory$486,523.00Opening Balance
Used Units Sales1311.bp BP Used Unit Inventory$153,689.00Opening Balance
(Consult Your Accountant)$766,198.25Opening Balance



For this example, we will use the launch date of 03/02/2023 to demonstrate and using QuickBooks Online 


Steps:


  • In your QuickBooks Online account, click on the "+ New" button on the top right



  • Select "Journal entry"



  • Select the correct date (your launch date)



  • Copy across all the QuickBooks Online General Ledgers / Debits / Description information as per the example:


Keep in mind that QBO General Ledger numbers may differ with your 


    
QBO GLDebitsCreditsDescription
1300 BP Parts Inventory$125,986.25Opening Balance
1310 BP New Unit Inventory$486,523.00Opening Balance
1311 BP Used Unit Inventory$153,689.00Opening Balance



  • Enter your offsetting Credit accordingly so that your Journal balances back to zero


Below is an example - however, it will be up to you to confirm with your accountant, where your offsetting credits will go  


In the example below, we used an opening balance equity account


Depending on your activation, you may need to have your offsetting credit balances from a few different account(s)



BP CategoryQBO GLDebitsCreditsDescription
(Consult Your Accountant)$766,198.25Opening Balance




  • Click Save


  • At this time, if you run a Stock Unit Valuation and Part Inventory Valuation by category in Blackpurl, it should now match your relevant QuickBooks Online General Ledgers


These are the link to the relevant articles in Blackpurl


Reporting - Stock Unit Valuation

Reporting - Part Inventory Valuation 



Important Information


  • If there is a discrepancy between the Unit Inventory Valuation and Part Inventory Valuation from your old accounting package, please contact your Accountant 


  • Remember that the figures that your Activation Specialist give you as Open Balances for your Unit Inventory Valuation and Part Inventory Valuation are based on the activation data that you gave Blackpurl at the time of Activation 


  • All other opening balances from your old accounting package will be your responsibility to enter - if in doubt, please contact your Accountant