This article is Step 5 of Understanding Accounting Integration - Undeposited Funds for dealers who joined Blackpurl Pre May 2024


To see all the steps of Understanding Accounting Integration, please review - Overview - Understanding Accounting Integration


Step 5 - Undeposited Funds



  • Any Undeposited Funds General Ledger account/s used should be true clearing account/s


  • If you are only going to use one Undeposited Funds General Ledger, the account type will need to be Current Asset in your accounting package

    If you are using multiple Undeposited Funds General Ledger they will need to set up with the account type according to the accounting package you use:

QuickBooks Online

  • Set the first Undeposited Funds General Ledger with the account type: Current Asset


  • All other Undeposited Funds General Ledger set them up with the account type as below (based on your location):
    • QBO USA/CDN - use account type: Other Current Asset 
    • QBO Aus/NZ - use account type: Cash Equivalent


Xero

  • Use account type: Current Asset


  • All deposits processed in Blackpurl will be journaled to an Undeposited Funds General Ledger account in your accounting package


  • When those deposits are actually showing your bank account in your accounting package, then they will need to be allocated the deposit to the same undeposited funds General Ledger account 


  • In theory, the transactions to your bank account should be correct and match up to what was received in Blackpurl 

    This is why it is important that the Dealership balance the cash drawer/s and complete the Cash Reconciliation in Blackpurl noting any variances.


Here is a link to our knowledge base for Cash Reconciliation - What is a Cash Reconciliation / How to process a Cash Reconciliation


  • Variances will not note directly in your accounting package

    Ideally, variances should be fixed in Blackpurl to ensure that any of the Undeposited funds General Ledgers matches the deposits to the bank account

    If for some reason the variances can not be fixed in Blackpurl, you will need to do a journal entry in your accounting package to Credit/Debit Undeposited funds and Debit/Credit an adjustment account, etc


Remember that all funds going into the Undeposited Funds General Ledger should be coming back out - it is a true clearing account


Processing a Deposit in Blackpurl:


  • Each time a Deposit is received in Blackpurl, it will integrate a journal for the transaction into your accounting package


Debit to Undeposited funds General Ledger 

Credit to Customer deposits General Ledger (The funds will stay in Customer Deposit General Ledger until the deposit is used or refunded)


This is an example of the above journal:


 


If the deposit is a refund in Blackpurl the debit and credit would be reversed


  • Each Payment Method you have available in Blackpurl will need to be mapped to the Undeposited Funds General Ledger account in your accounting package



You may choose to have only 1 Undeposited Funds General Ledger in your accounting package that you map/direct all Payment Methods to - this is the most common option our Dealerships use


This would mean when you receive any payment into your bank account that has been used in Blackpurl, you would just allocate the bank account deposit to the one and only Undeposited Funds General Ledger in your accounting package


OR


You may choose to have multiple Undeposited Funds General Ledgers in your accounting package and map / direct each Payment Method to specific Undeposited Funds General Ledgers 


For example - you may have Undeposited Funds General Ledger account that you want to use for the Payment Methods of Cash, Cheque, or Card payments and then have a separate Undeposited funds General Ledger account for the Payment Method of  PayPal (as this payment method may take longer to receive into your bank account)


In this instance you would transfer Cash/Cheque/Card payments received to your bank feed to the Undeposited funds General Ledger that you are using for your Cash/Cheque/Card and all deposits received directly deposited to your bank account  from PayPal would be transferred to Undeposited funds General Ledger specific for PayPal



For further information on Customer Deposits, please review our article - Undeposited Funds General Ledger - Blackpurl and Accounting Package (Xero and QuickBooks)