Undeposited Funds accounts hold payments received in Blackpurl until you deposit them to your bank account in your accounting package. This creates a proper clearing mechanism between point-of-sale and bank reconciliation.
When a customer pays $500 cash for a service job, that money doesn't go directly to your bank account—it sits in your register. Undeposited Funds is a holding account that bridges Blackpurl (where you record the $500 payment) and your accounting package (where it eventually shows as bank deposit). Without proper setup, you can't reconcile what Blackpurl says you received versus what your bank statement shows.
Account Type Requirements
Undeposited Funds accounts have specific type requirements or integration fails:
Platform | Single Account | Multiple Accounts |
QuickBooks (USA/CAN) | Current Asset | First: Current Asset, Others: Other Current Asset |
QuickBooks (AUS/NZ) | Cash or Equivalent | First: Current Asset, Others: Cash Equivalent |
Xero (All) | Current Asset | Current Asset |
Pro Tip: Most dealerships use a single Undeposited Funds account for all payment methods—simplest to reconcile.
Configure Undeposited Funds
Go to System Settings > Accounting Integration > Undeposited Funds.
Option 1: Single Account (Recommended)
Create one Undeposited Funds GL account in your accounting package (Current Asset type)
Sync your Chart of Accounts in Blackpurl
Go to System Settings > Payment Methods
For each payment method, select the same Undeposited Funds account
All payments flow through one account—reconciliation is straightforward.
Option 2: Multiple Accounts
Use separate accounts when you need to track payment types separately before bank deposit.
Example:
Cash/Check payments → BP Undeposited Funds (deposit daily)
Card payments → BP Card Clearing (batched by processor)
PayPal → BP PayPal Clearing (transfers weekly)
Create separate Undeposited Funds GL accounts in your accounting package
Sync your Chart of Accounts
Assign each payment method to its specific clearing account
Map Payment Methods
Go to System Settings > Payment Methods.
Each payment method shows an Undeposited Funds field:
Click on a payment method (Cash, Visa, Mastercard, etc.)
Select the appropriate Undeposited Funds GL account
Save
Repeat for all payment methods
How It Works
Customer pays $200 by credit card:
Step | Entry | Debit | Credit |
1 | Blackpurl posts payment | Undeposited Funds $200 | Customer Deposit (or Revenue) $200 |
2 | Card processor deposits | Bank Account $200 | Undeposited Funds $200 |
The Undeposited Funds account should clear to zero as deposits hit your bank.
Reconciliation
Match your Undeposited Funds GL balance to Blackpurl's Cash Reconciliation:
Complete Cash Reconciliation in Blackpurl daily
Compare the reconciliation totals to Undeposited Funds GL balance
Allocate bank deposits in your accounting package to the same GL account
Non-zero balance? Indicates:
Pending deposits not yet recorded in bank
Variances from cash reconciliation
Transactions needing investigation
Variances
Cash Reconciliation variances in Blackpurl don't post separately to your accounting package. If you can't resolve a variance in Blackpurl:
Note the variance amount
In your accounting package, journal: Debit/Credit Undeposited Funds, Credit/Debit Adjustment account
Document the reason for the variance
Pro Tip: Fix variances in Blackpurl whenever possible. Manual journal entries in your accounting package create reconciliation complexity.
Bottom Line
Undeposited Funds accounts are true clearing accounts—money in equals money out. Complete your Cash Reconciliation daily in Blackpurl and allocate bank deposits promptly to keep these accounts clean.