The Finance Commission Income control account allows your dealership to record both the financed amount and any commission earned on a financed unit deal in a single payment. This article is Step 4N of the Understanding Accounting Integration series. To see all steps, see Accounting Integration Setup: All Steps.
Purpose of the Finance Commission Income Control Account
The Finance Commission Income control account lets your dealership record the full financed amount together with all commissions earned on a financed unit deal. Blackpurl assumes that when the finance company pays the dealership the financed amount, it also includes the dealership's commission — so you can receive the full combined amount in a single transaction in Blackpurl.
The income component of the finance commission integrates to your accounting package using the General Ledger account specified in the Finance Commission Income control account field.
If you do not specify a General Ledger account in this field, no finance commission data will integrate from Blackpurl to your accounting package.
Setting Up a General Ledger Account in Your Accounting Package
The General Ledger account you assign to Finance Commission Income must be an income or revenue account type. You may need to create a new General Ledger account in your accounting package specifically for this purpose.
Example: Creating a New Account in QuickBooks Online
In QuickBooks Online, create a new account and set the account type to an income or revenue category before linking it to the Finance Commission Income control account field in Blackpurl.
Example: Creating a New Account in Xero
In Xero, create a new account and set the Account Type to a revenue option. When selecting the account type, navigate to the Revenue items section and choose one of the available options such as Other Income, Revenue, or Sales.
Worked Example
The following scenario shows how Finance Commission Income flows through Blackpurl and into your accounting package.
Unit sale price: $20,200
Customer down payment: $2,000
Amount financed: $18,200
Dealership commission: $500
Total paid to dealership by the finance company: $18,700 (financed amount + commission)
How to Process This in Blackpurl
1. Fill in the relevant fields in the Deal Financing section of the unit deal, including the financed amount and commission.
2. Receive the full amount of $18,700 into Blackpurl when the finance company sends payment.
3. Close out the customer order once the finance has been funded.
Once the customer order is closed, Blackpurl generates a journal for the commission amount. This journal posts to the General Ledger account specified in the Finance Commission Income control account field.
The full $18,700 received into the bank still needs to be allocated to the relevant Undeposited Funds General Ledger account as part of your normal banking process.