This article is Step 4N of Understanding Accounting Integration - Control Accounts > Finance Commission Income
To see all the steps of Understanding Accounting Integration, please review - Overview - Understanding Accounting Integration
Step 4N - Control Accounts - Finance Commission Income
The purpose of this Control account is for the Dealership to be able to record both the Finance amount together with all commissions earned on financed Unit Deal
We are also assuming that when the Finance Company pays the dealership the financed amount that they are also paying the Dealership's Commission so you will also be able to receive the full amount into Blackpurl
The income component of the Finance Commission will also integration over to your Accounting Package to the General Ledger indicated in the Control Account field of Finance Commission Income
Please remember that if you do not indicate a General Ledger in this field, then no integration of the Finance Commission from BP to your accounting package will occur
With this in mind the relevant General Ledger Account Type in your accounting package must be income / revenue based so the Dealership may need to setup a new General Ledger in your accounting package for this purpose
Example in QuickBooks Online on creating a new General Ledger
Example in Xero on creating a new General Ledger
Note - when you click on Account Type go to the Revenue items and select one of the options from the section ie Other Income / Revenue / Sales
Let's go through a scenario
Dealership has sold a unit for $20,200 less down payment of $2,000 so the amount financed = $18,200
Dealership Commission of $500
The full amount of $18,700 will be paid to the Dealership as part of the Finance amount received by the Dealership from the Finance Company
Fill in the relevant field on the Deal Financing section
User will then receive the full amount of $18,700 in Blackpurl
Dealership will just need to close out the Customer Order once the Finance has been funded
Once the Customer Order is closed out there will be a journal for the commission amount that will sit on the General Ledger indicated in the Control Account - Finance Commission Income field
When the funds are received into the bank $18,700 will still need to be allocated to the relevant Undeposited funds General Ledger as per the normal process