This article is Step 5 of the Understanding Accounting Integration series for dealers who joined Blackpurl before May 2024. It covers how Undeposited Funds General Ledger accounts work as clearing accounts, how deposits are journaled from Blackpurl into your accounting package, and how to map payment methods to those accounts.
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To see all steps in the series, visit Accounting Integration Setup: All Steps.
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Undeposited Funds General Ledger accounts used in Blackpurl must be set up as true clearing accounts — all funds that flow in should flow back out. The account type you assign depends on your accounting package and whether you use one account or multiple.
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If you use only one Undeposited Funds General Ledger account, set the account type to Current Asset in your accounting package. This applies to both QuickBooks Online and Xero.
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If you use multiple Undeposited Funds General Ledger accounts, the required account types vary by accounting package and region.
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QuickBooks Online (QBO)

Xero

Every deposit processed in Blackpurl is journaled as a transaction into your accounting package. The journal entry credits the Customer Deposits General Ledger and debits the Undeposited Funds General Ledger. The funds remain in the Customer Deposits General Ledger until the deposit is used or refunded. If the deposit is a refund, the debit and credit are reversed.
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When those deposits appear in your bank account in your accounting package, allocate each bank deposit to the same Undeposited Funds General Ledger account used when the deposit was first journaled. This keeps the clearing account balanced.
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Each payment method available in Blackpurl must be mapped to an Undeposited Funds General Ledger account in your accounting package. You have two options for how to structure this mapping.
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The most common setup is a single Undeposited Funds General Ledger account that all payment methods map to. When any payment is received into your bank account, you allocate the bank deposit to that one account. This keeps reconciliation straightforward.
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You may choose to create multiple Undeposited Funds General Ledger accounts and map specific payment methods to each one. This is useful when certain payment methods take longer to reach your bank account than others.
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For example, you might map Cash, Cheque, and Card payments to one Undeposited Funds account, and PayPal to a separate account — since PayPal deposits may take longer to appear in your bank feed. When reconciling, you allocate Cash/Cheque/Card bank deposits to the first account and PayPal deposits to the second.
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In theory, the transactions reaching your bank account should match exactly what was received in Blackpurl. This is why it is important that your dealership balances the cash drawer/s and completes a Cash Reconciliation in Blackpurl, noting any variances.

For guidance on balancing and reconciling, see What is a Cash Reconciliation / How to process a Cash Reconciliation (no longer available).
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All funds that flow into the Undeposited Funds General Ledger must flow back out. It is a true clearing account — not a holding account. If it carries an ongoing balance, that signals a reconciliation gap between Blackpurl and your accounting package that needs to be investigated.
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For more detail on how the Undeposited Funds General Ledger works across Blackpurl and your accounting package, see Undeposited Funds General Ledger Explained.