To understand how Undeposited Funds General Ledger works in your Accounting Package, you need to understand how it all works together.
- Payment Types are setup through System Settings > Settings and Controls - Payment Methods.
The Dealership can make the payment types they don't use to be inactive by moving the toggle.
- Each Payment Type has a specific Undeposited Funds General Ledger attached to you in System Settings > Accounting Integration - Undeposited Funds
- When you take a payment from a Customer in a Customer Order (as a deposit or checkout section), it will cause a transaction to go across to your accounting packaged and it will depend on what Payment Type is used as to what Undeposited funds General Ledger the funds will sits in your accounting package
For example using the Undeposited Payment Type above - Cash = GL1000 - Cash Clearing
If you take a deposit on a Customer account, this is the transaction that will go across to your Accounting Package
Debit - GL1000- Cash Clearing - $amount of payment
Credit - GL Customer Deposits - $amount of the payment (you are holding the funds as deposits in Customer Deposit GL)
If you take a checkout payment, this is the transaction that will go across to your Accounting Package
Debit - GL1000 - Cash Clearing - $amount of the payment
Credit - GL COGS - $amount of the payment
The funds will never go straight to your Bank account as you need to make sure that you receive these funds in your Bank Account.
In your Accounting Package - Xero or QB
Now it is up to you to confirm that these funds have been deposited into your Bank Account.
If you have an automatic Bank Feed setup in your Accounting Package (all transactions through your Bank Account are automatically downloaded from your bank), once you can see the funds received into the Bank Account, you can just allocate them to the Undeposited Funds General Ledger that you are using.
If you don't have a Bank Feed but you use your bank statements, once you see the funds on the bank statement as being received into the Bank Account, you would journal the funds between your Undeposited Funds General Ledger and your Bank Account General Ledger.
Basically the Undeposited Funds General Ledger is a clearing account as funds from Blackpurl will never go directly to your Bank Account.
It is up to you to confirm that you have received these funds into your Bank Account and then account for them through your Undeposited Funds General Ledger.
This is why it is important to process your Cash Reconciliation in Blackpurl on a regular basis so you know how much total you are looking for in your Bank Account. This is the link to the relevant article - What is a Cash Reconciliation / How to process a Cash Reconciliation