Purpose


To reconcile what your Blackpurl indicates is the total of what the Received Inventory Accruals should be and it should match to the relevant General Ledger in your Accounting Package 


How often should you do this reconciliation


It is recommended that you perform this reconciliation every month

If this process is done on a regular basis, the Dealership knows that this Received Inventory Accrual General Ledger is correct and if there are any issues, they can be picked up and corrected straight away


Understanding what Received Inventory Accrual General Account actually is

It is the value of all Parts related Stocked Vendor Receivings (that are waiting for a Vendor Invoice to be completed) and Vendor Returns (that are waiting for a Vendor Credit Memos to be completed) and they should always match the balance of the Received Inventory Accrual General Account 


When vendor receivings are stocked in, their related part inventory or sublet accrual GL’s are updated with an offset posted to the Received Inventory Accrual (A/P Inventory Accrual account VR) General Account.  Once vendor invoices are processed against these stocked vendor receivings, these amounts are cleared out of the Received Inventory Accrual General Account 


When vendor returns are set to Approved, their related part inventory GL’s are updated with an offset posted to the Received Inventory Accrual General Account.  Once vendor credits are processed against these approved vendor returns, these amounts are cleared out of the Received Inventory Accrual General Account 


Before proceeding with this reconciliation you should have a clear understanding of which GL you have set as your A/P inventory accrual GL as well as the relationship between VR’s and VI’s and the relationship between RTN’s and RTNCR’s



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 your Received Inventory Accrual General Ledger account


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 instead


What you need to reconcile:


Blackpurl 


Please run the following reports: 



The total of these reports will be give you what Blackpurl indicates is the total for your A/P Inventory Accrual Account



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 Received Inventory Accrual General Ledger account 



Compare


Then simply compare the totals from Blackpurl Reports that you just generated to your Balance Sheet for the Received Inventory Accrual General Ledger 


What if there is a variance between Blackpurl and Received Inventory Accrual 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 relevant Received Inventory Accrual 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 or look for entries that have been manually changed in your accounting package


If you still cannot find the cause then it might be possible for the Blackpurl Support team to look at the daily logs in the backend of your Blackpurl and tell you which individual day/s reported a change in variance - then at least you will have a date frame as to when the variance happened for you to investigate further