DeskManager Online comes with a predefined Chart of Accounts. Transactions are automatically created when vehicle costs, sales, payments, or any other financial transactions are entered into the program.
The accounting data can be transferred to Quickbooks Desktop or Quickbooks Online. Make sure that your version of QuickBooks supports the generation of Bills before checking the “Generate Bill” boxes which are found in the Chart of Accounts Settings. The basic subscription of QuickBooks Online called Simple Start does not support Bill Management and is not recommended to be used with DeskManager Online.
Another thing to note is the limitation of the number of accounts each version of QuickBooks Online has. This is important when selecting accounts to track separately and for the needs of your accountant with respect to the accounts used to record the non-vehicle-related activity of your business. For example, currently, the Plus version of QuickBooks Online has a limitation of 250 accounts in the Chart of Accounts.
In the sections below, we will provide more information about what each section contains and the specific accounts within.
Section 1 – Generic Accounts
Generic Accounts – These are the common accounts that DeskManager uses for working within QuickBooks. Any changes to account names or types can take place using the Manage Accounts tool. These accounts are used as the base from which all accounts are built and from where any break-out accounts will be separated. These accounts cannot be disabled in DeskManager Online, but as mentioned they can be renamed or mapped to existing accounts performing the same task using the mapping tools.
Accounts Receivable – These items are legally enforceable claims for payment held by a business for goods supplied and/or services rendered that customers/clients have ordered but not paid for. In other words, money owed to you by a customer or a finance company. These entries are generated by selling a vehicle and posting the ensuing deal into QuickBooks. We expect the account used for this purpose to be an Asset account where a debit is an increase and a credit is a decrease.
Accounts Payable – These items represent money owed by a business to its vendors for various purchases. It is shown as a liability on a company's balance sheet. We expect the account used for this purpose to be a Liability account where a debit is a decrease and a credit is an increase.
Inventory – This account is where your vehicle asset values are recorded. This account also contains the cost offsets related to vehicle expenses that are considered part of the Asset/Cost of Goods Sold accounting flow. We expect the account used for this purpose to be an Asset account where a debit is an increase and a credit is a decrease.
Undeposited Funds – The asset account where all receipts are recorded prior to being deposited into a QuickBooks bank account. We expect the account used for this purpose to be an Asset account where a debit is an increase and a credit is a decrease.
Liabilities – A liability represents money you owe but have not yet paid to a third party. Sales Tax is a good example of this. While you collect Sales Tax from a deal, you do not get to keep this money. It must be paid to your local Tax Authority. We expect the account used for this purpose to be a Liability account where a debit is a decrease and a credit is an increase.
Income – The money (or some equivalent asset such as a trade-in vehicle) that a business receives, usually in exchange for providing a good or service. We expect the account used for this purpose to be an Income account where a debit is a decrease and a credit is an increase.
Expense – The cost of operations that a company incurs to generate revenue. These are typically items that do not impact the asset value or are not related to a vehicle currently in inventory therefore do not follow the Inventory Asset to Cost of Goods Sold path. We expect the account used for this purpose to be an Expense account where a debit is an increase and a credit is a decrease.
Cost of Goods Sold – The direct costs of producing or acquiring the goods sold by a company. It excludes indirect expenses, such as distribution costs and sales force costs. We expect the account used for this purpose to be a Cost of Goods Sold account where a debit is an increase and a credit is a decrease.
Flooring Notes – Floor planning is a type of inventory financing for large-ticket retail items such as vehicles. Retailers use a short-term loan to purchase inventory, and the loan is repaid as inventory is sold. This balance of this account is the principal amount of inventory currently floored by the dealer at a point in time. The amount borrowed is allocated to this account. Any fees or interest paid on the Floor Plan should be allocated to separate accounts as needed. We expect the account used for this purpose to be a Liability account where a debit is a decrease and a credit is an increase.
Trade-In – A Bank type of account used to reconcile the purchase of a Trade-In vehicle using the Trade Credit offered to the customer, the Actual Cash Value (ACV) assigned to the trade in the deal and then taking the difference and applying it to a Trade-ACV account so show profit or loss based on values entered in the deal. It must be a bank-type account to function as designed. This account should always show a zero balance. We expect the account used for this purpose to be a Bank account where a debit is an increase and a credit is a decrease.
Due From Lender – The account is used to record the receivable due from a lender from a non-in-house financed deal. This account is similar to the Accounts Receivable description above. We expect the account used for this purpose to be an Other Current Asset account where a debit is an increase and a credit is a decrease.
Section 2 – Contract Accounts
Contract Accounts – For more detailed control over the breakdown of your deal-related accounting items, this section allows a user to select accounts they wish to separate out from more generic groupings. By default, none of these items are broken out separately. To enable an account breakout, check the box to Track Separately. The user is also given the option to change the Account Type of the account being used when an item is tracked separately. Please consult with an accounting professional before making changes to the account type as this change will impact reports generated in QuickBooks.
Receivables – BHPH – If enabled, instead of the general Receivables account, DeskManager will break out into a separate account the receivable amounts of your BHPH deals. We expect the account to be an Other Asset account where a debit is an increase and a credit is a decrease.
Receivables – Wholesale – If enabled, instead of the general Receivables account, DeskManager will break out into a separate account the receivable amounts of your Wholesale deals. We expect the account to be an Other Asset account where a debit is an increase and a credit is a decrease.
Income – BHPH – If enabled, instead of the general Income account, DeskManager will break BHPH Income out into a separate account for your BHPH deals. We expect the account to be an Income account where a debit is a decrease and a credit is an increase.
Income – Wholesale – If enabled, instead of the general Income account, DeskManager will break Wholesale Income out into a separate account for your Wholesale deals. We expect the account to be an Income account where a debit is a decrease and a credit is an increase.
Income – Retail Financed – If enabled, instead of the general Income account, DeskManager will break Financed Income out into a separate account for your Retail Financed deals. We expect the account to be an Income account where a debit is a decrease and a credit is an increase.
Income – Retail Cash – If enabled, instead of the general Income account, DeskManager will break Cash Income out into a separate account for your Retail Cash deals. We expect the account to be an Income account where a debit is a decrease and a credit is an increase.
Down Payment – If enabled, instead of the general Income account, DeskManager will break out into a separate account the receivable amounts of Down Payments recorded within any of your deals. We expect the account to be an Other Asset account where a debit is an increase and a credit is a decrease.
Deferred Down – If enabled, instead of the general Income account, DeskManager will break out into a separate account the receivable amounts of Deferred Down Payments recorded within any of your deals. We expect the account to be an Other Asset account where a debit is an increase and a credit is a decrease.
Interest – If enabled, instead of the general Income account, DeskManager will break your BHPH Interest Income out into a separate account for your BHPH deals. We expect the account used for this purpose to be an Income account where a debit is a decrease and a credit is an increase.
Fees-Liability – If enabled, instead of the general Liability account, DeskManager will break out into a separate Liability account for all Fees specific to the state/province in which you are doing business. Using just this option, all state-specific fees will be put into this single account. If enabled, any of the fees in the subgroup below will be given their own accounts. We expect the account used for this purpose to be an Other Current Liability account where a debit is a decrease and a credit is an increase.
State/Province Specific Fees – If enabled, instead of using the general Liability account in the Contract Accounts area or the above Fees-Liability account, DeskManager will break out into a separate Liability account with the associated fee specific to the state/province in which you are doing business. We expect the account to be an Other Current Liability account where a debit is a decrease and a credit is an increase.
Taxes – If enabled, instead of using the general Liability account, DeskManager will break out into a separate Liability account for all Taxes specific to the state/province in which you are doing business. Using just this option, all state/province-specific taxes will be put into this single account. If enabled, any of the fees in the subgroup below will be given their own accounts. We expect the account to be an Other Current Liability account where a debit is a decrease and a credit is an increase.
State/Province Specific Taxes – If enabled, instead of using the general Liability account or the contract Fees-Liability account, DeskManager will break out into a separate Liability account the associated fee specific to the state/province in which you are doing business. We expect the account to be an Other Current Liability account where a debit is a decrease and a credit is an increase.
Optional Sales Fees - These items represent Income from optional products or services that could be sold along with a vehicle in any deal. If enabled, income for that item is to be separately tracked in its own account. We expect the account to be an Income account where a debit is a decrease and a credit is an increase. The cost portion of these items are tracked as Cost of Goods Sold items and can be broken out in that portion of the Chart of Accounts setup.
Commission – If enabled, the system will create a Commission expense account. This account is where DeskManager will break out all commission expenses. We expect the account to be an Expense account where a debit is an increase and a credit is a decrease.
Mfr Rebate – If enabled, DeskManager will break the Manufacturer's Rebate from a deal out into a separate Income account. We expect the account to be an Income account where a debit is a decrease and a credit is an increase.
Trade Profit - If enabled, this item will allow the difference between the Trade Credit and ACV to be separately recorded as either positive or negative income depending on the values entered into the deal. We expect the account to be an Income account where a debit is a decrease and a credit is an increase.
Trade Payoff – Should any trade-in vehicle have a payoff to a previous lender, enabling this will result in DeskManager breaking out these values into a separate account. We expect the account to be an Other Current Liability account where a debit is a decrease and a credit is an increase. Trade Payoff also has the option to generate a bill when a value is applied to this part of a deal. The deal will also have a field for the Payoff Vendor that will be used when the bill is created.
Discount – When working with Third-Party financed deals, if enabled any applied discount is to be recorded separately into this account. We expect the account to be an Income account where a debit is a decrease and a credit is an increase.
Lender Fee 1 & Fee 2 – When working with Third-Party financed deals, if enabled any fees are to be recorded separately into this account. We expect the account to be an Income account where a debit is a decrease and a credit is an increase.
Lender Participation – When working with Third-Party financed deals, if enabled this allows the settlement from a deal to be tracked separately. We expect the account to be an Income account where a debit is a decrease and a credit is an increase.
Deferred Taxes – (Texas) For BHPH dealers in Texas, enabling this allows DeskManager to record Deferred Taxes into this separate account. We expect the account to be an Other Current Liability account where a debit is a decrease and a credit is an increase.
Section 3 – Adjustment Accounts
By enabling any of these accounts, DeskManager will break your selected adjustments out into separate income accounts. We expect the account to be an Income account where a debit is a decrease and a credit is an increase.
The adjustment types you find here are a combination of the built-in adjustment accounts created by DeskManager as well as the custom accounts created by your users and those imported from DeskManager 11, if applicable.
Section 4 – Inventory Accounts
Enabling the Track Separately checkboxes in this area will allow any Inventory-related items to be tracked separately and, if enabled, to allow DeskManager to generate a bill that will allow QuickBooks Online to generate a check to a vendor for these inventory items. It is highly recommended to use the Generate Bill feature for any items you would normally pay by check, credit card, or petty cash if the feature exists in your version of QuickBooks.
The Track Separately and Generate Bill options are independent of each other. Neither requires the other to be enabled to take advantage of either feature.
These accounts are related to the dealership's cost of items typically sold to the customer as part of a deal. The costs for these items are typically entered with the item into the deal and are then added to the vehicle at the point where the deal is marked as one of the “Contract as Final” options within a deal’s Contract tab. We expect the account to be an Asset account where a debit is an increase, and a credit is a decrease.
Inv-Purchase – This account is where the vehicle purchase price will be recorded. From here the user can configure the system to separate this account for mapping in QuickBooks and/or enable Bill Generation in QuickBooks. We expect the account to be an Asset account where a debit is an increase, and a credit is a decrease.
Inv-Flooring - This account is where the flooring-related expenses will be recorded. The user can enable the Track Separately feature and/or the Generate Bill feature for use in QuickBooks. We expect the account to be an Expense account where a debit is an increase, and a credit is a decrease.
Inv-Trade-In Acquisition - When this item is selected for separate tracking, any trade-in vehicles brought into your inventory will have their asset value tracked in this account. We expect the account to be an Asset account where a debit is an increase, and a credit is a decrease.
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