This article is about understanding Tax in Blackpurl for both QuickBooks and Xero

As you can appreciate Taxation can be a minefield so it is important that you know how to account for the taxes paid and collected to the relevant government authority

United States of America and Canada

  • Both QuickBooks and Xero do not allow third parties (like Blackpurl) to integrate directly to any Tax General Ledgers / Tax defaults in Xero / QuickBooks 

  • As this is the case at Activation, your Dealership would have been setup with new BP Tax Collected and BP Tax Paid General Ledger in your Accounting package which would that then been subsequently mapped to in your Blackpurl

  • When a Customer Order Invoice or a Vendor Invoice with tax integrates from Blackpurl to Xero / QuickBooks, the tax will show in Xero / QuickBooks as a line item instead and will point to the relevant BP Tax Collected or BP Tax Paid General Ledgers

  • When reporting on your taxes, instead of using Xero / QuickBooks to pull the relevant reports, you would use the Tax Detail Report in Blackpurl.  This is the link to the relevant article - Reporting - Tax Detail

  • Then when accounting to the relevant government authority, you will need to allocate 'payment' to the BP Tax Collected / Tax Paid General Ledgers

Australia and New Zealand

  • For the most part Australian and New Zealand Tax is quite simply as they have a basic tax rate that is charged across the board and both Xero and QuickBooks do allow third parties (ie Blackpurl) to map directly to the taxes that are setup in Xero / QuickBooks 

  • Once the Sales Taxes and Purchase Taxes are set up correctly (with help from our Activation team) and the relevant Tax Code Mapping is setup in System Settings > Accounting Integration in your Blackpurl, it is very easy to account to the relevant government authority for taxes directly from Xero or QuickBooks

  • The Tax Code Mapping means that Xero and QuickBooks have allows Blackpurl to map directly to the taxes that Xero and QuickBooks have and all reportability for the relevant taxes is done by running the reports directly in Xero / QuickBooks 

  • If you are an Australian Dealership that adhere to Notional Input Tax Credit (NITC) then we would suggest that you make yourself familiar with the following articles

The setting up of the NITC option would have been discussed at the time of Activation