Let's start by defining what payables and receivables are:

Payables

Any money that you owe to another person or entity, is a payable. For example, if I purchased a car at the auction today, but I don't write a check for it until I get the title, that would be a payable.

Other types of possible payables:

  • Invoiced Costs - this might be a recon shop or detailer that bills you once a month for all of your cars. Until you pay them, each car gets a cost added to it and it shows as a payable

  • Amounts owed to service contract or GAP companies

  • Insurance

  • Unpaid rent

Rule of thumb: any time you owe someone else money, it's a payable.


Receivables

Any money that someone else owes you for something, is a receivable. For example, if I sold a car today and I'm not going to get funded by the bank for a few more days, I would have a receivable recorded to show the fact that the bank still owes me money.

Other types of receivables:

  • Cash down on a deal

  • Finance reserve from a bank

  • Invoiced service tickets

Rule of thumb: any time someone owes you money, it's a receivable.


Opening Payables and Receivables

Great, so now that we know what a payable and a receivable is you need to record any that you had as of your accounting start date.

Under Accounting > Setup you can click into the appropriate tab and start adding your payables and receivables.

Note: even if you've since paid or received money on the open transaction, if it was open as of the start date it must be recorded as an open payable or receivable.


Automated Opening Balances

If you're already using deals, inventory, or service then automated opening balances may already be getting created for you!

Deals

If you have a deal that you closed before the accounting start date, then once you enable the accounting system you should automatically see a receivable created for that deal!

Any service contracts or gap contracts that you haven't paid yet will need to be created as a payable.

Inventory

Costs

If you've added costs to your vehicles before the start date, then you can check the Create Opening Payable checkbox on the cost to have the system create a payable for you!

Flooring

If you're flooring a vehicle as of the start date, then dealr.cloud will automatically create an opening balance for that liability as of the start date.

Service

If you have a ticket that was invoiced before the accounting start date, then a receivable will automatically be created for the remaining balance on the invoice.

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