Purpose

Reconcile the WIP Labor Inventory General Ledger in your accounting package to what Blackpurl indicates the balance should be

How often should you do this reconciliation


It is recommended that you perform this reconciliation every month

The more frequently you perform these reconciliations the easier it is to investigate and resolve any possible variances that may occur


Understanding what WIP Labor Inventory General Ledger actually is


This WIP Labor Inventory General Ledger account is only used by Blackpurl when the costing of labor / labour on service jobs is based on the actual clocking entries of technicians

This is discussed in Option 2 of this article - Costing of Technician Hours

The value of all WIP Labor / Labour Costs (completed technician clocking entries) recorded on active service jobs in Blackpurl should always match the balance of the WIP Labor Inventory General Ledger account


Before proceeding with this reconciliation you should have a clear understanding of which General Ledger you have set as your  WIP Labor Inventory General Ledger and how technician hours are recorded on service jobs


Important information:


Remember that this is a Blackpurl Control Account and is being managed by Blackpurl


To prevent reconciliation issues you should never post entries manually/directly into the accounting package which affects the  WIP Labor Inventory General Ledger


Also as part of what should be your standard practices in your accounting package, you should never modify or delete a transaction or journal entry that was generated by the integration


If you need to change something that the Blackpurl integration posted into your accounting package, make the correction in Blackpurl instead


What you need to reconcile:


Blackpurl 


Run Reporting > Reports > Reconciliations - WIP Labour Inventory Account


This is the relevant article - Reporting - Reconciliations - WIP Labour Inventory Account



The figure you are looking for the WIP Labor Cost Total 


Remember this report is valid only on the day/time that it is generated so we recommend that you run this report out of business hours 



Tip:
Why not setup scheduled reporting - that way you can schedule the relevant Blackpurl report to automatically run at a specific date / time and email direct to a Blackpurl User 

This article will explain how to do it - Reporting - Scheduled Reporting



Accounting Package - Xero or QuickBooks Online 


At the same time run a Balance Sheet from your Accounting Package as of the “reconcile date” which will give you the balance of the WIP Labor Inventory General Ledger 



Compare


Then simply compare the totals from Blackpurl Report that you just generated to your Balance Sheet WIP Labor Inventory General Ledger 


What if there is a variance between Blackpurl & WIP Labor Inventory General Ledger 


If you find only small or insignificant variances you should just post a journal entry to bring them back in line with each other.  Your time is probably more valuable than a few cent variance you would be chasing after


This is the only situation where it’s ok to post a journal entry against a General Ledger account that is managed by Blackpurl.


For larger variances, you should review the account transactions report for the WIP Labor Inventory General Ledger account for the time period since your last successful reconciliation and look for entries that were not generated by the Blackpurl integration as these will probably be the cause.  If you still cannot find the cause then it might be possible for the Blackpurl team to look at their daily logs and tell you which individual days reported a change in variance