Supplier invoices & credits

Invoices are used for recording money owed to suppliers and any tax applicable to the purchase. Brightpearl provides two methods of recording a supplier invoice:

  • A purchase invoice is received against a purchase order and provides a visible record of the invoice, the ability to receive purchase goods into stock and print documents
  • A supplier bill creates only the accounting journal and provides no other record or option to receive goods or print documents

Credits are used for recording money owed from suppliers and any tax applicable to the refund. Brightpearl provides two methods of recording a supplier credit:

  • A purchase credit is received against a purchase credit and provides a visible record of the refund and the ability to print documents
  • A supplier credit creates only the accounting journal and provides no other record or option to print documents

Purchase invoices

Purchase orders/invoices allow you to:

  • Record a payment made to the supplier
  • Post an invoice to create the accounting and update the supplier account balance
  • Print or email purchase order documents to the supplier
  • Receive inventory into stock

A purchase invoice is received against the original purchase order and will automatically be posted with the values displayed on the order screen. It is therefore important that the order prices and quantities match precisely to the details on the invoice received from the supplier.

Note that an invoice can only be received against an order where all or none of the inventory has been received.

Receiving a purchase invoice on a purchase order will:

  • Create the invoice accounting to record purchases/stock received not invoiced, accounts payable and tax where applicable.
  • Lock the purchase order so no further changes can be made.
  • Update the supplier account balance and financial history with the amount owed. If the order has already been marked as paid the balance will automatically be cleared.
  • Create accounting adjustments for price changes on any received inventory to ensure cost of sales is corrected.
  • (Optional) Update your cost price list with any price changes so that future purchase orders use the correct pricing.

One invoice to many orders

A single invoice can be received against multiple purchase orders. All the items on the selected orders will be marked as invoiced.

Part order invoices

If an invoice is only for part of the order, or orders, the remaining items must be split to a back order. Brightpearl only handles full order invoicing.

Multiple invoices for a single order

If multiple invoices are received all for a single order, the items for each invoice need to be split onto separate purchase orders.

Deleting or amending purchase invoices

Once an invoice has been received on a purchase order it cannot be un-invoiced. Any corrections will need to be made by raising a purchase credit.

Note that any manual corrections made directly to the PI accounting journal will not be reflected on the purchase order and will not correct the value of inventory.

Foreign currency purchase invoices

A purchase order is always created in the currency of the supplier it is added for, and the invoice is always received in the currency of the order. A foreign currency order is assigned an exchange rate which is then used to convert the invoice values into base currency for the financial reporting, but the invoice balance seen on the supplier account and invoice document is in the foreign currency.

A supplier can have invoices in multiple currencies by changing the currency on their record before adding an order, or where orders are added for secondary contacts of a company which have different currencies (all invoices are against the primary contact). A supplier account with invoices in multiple currencies will have a separate balance for each currency.

Supplier bills

Supplier bills can be used to create the accounting for an invoiced received from a supplier. It creates no visible returns record and does not allow for printing of a credit document. It will create a PI type accounting journal and update the supplier account with the invoice balance. This process can be used to record items such as telephone, gas and electric bills.

How to enter a supplier bill

  1. Got to  Suppliers > Enter a Bill.
  2. Search for the supplier (only primary suppliers contacts are searchable) or add a new supplier.
  3. Select the tax date and due date. Automatically calculate a due date by clicking the 30 Days  button.
  4. Enter the Bill reference.
  5. Enter any further details.
  6. Enter the net amount.
  7. Select the correct tax code to calculate the tax and total values.
  8. Select the nominal code the charge relates to (e.g. Rent).
  9. To add more rows using a different tax rate or nominal code click the Add row button and then enter the details.
  10. To simultaneously create a bank payment and mark this invoice/credit as paid, select the Mark as paid at the same time checkbox.
  11. Click the Extra Options link if you want to associate this invoice with a department, project or lead source.
  12. Click the Enter Bill button.

Foreign currency supplier bills

The currency for a supplier bill defaults to the supplier currency, but it can be changed. The exchange rate defaults to the system exchange rate but can be edited. This rate is used to convert the figures to base currency for financial reporting, but the foreign currency balance will appear on the supplier record.

If a foreign currency supplier bill is marked as paid at the same time, the payment will be created in the same currency and with the same exchange rate. The invoice will be marked as fully paid and cleared on the supplier account.

Purchase credits

Purchase credits allow you to:

  • Record the refund from the supplier to create the accounting and update the supplier account balance. This will create a SR type journal.
  • Post a credit note to create the accounting update the supplier account balance. This will create an PC type journal and lock the purchase credit record so that it cannot be edited.
  • Print or email a document to the supplier.

Note: Stock tracked products cannot be added to a purchase credit. Goods being returned to a supplier will need to be removed from stock using a stock correction. Brightpearl uses FIFO costing method, so you will need to select the specific items at the relevant cost.

Foreign currency purchase credits

A purchase credit is always created in the currency of the supplier it is added for, and the invoice is always created in the currency of the order. A foreign currency order is assigned an exchange rate which is then used to convert the credit values into base currency for the financial reporting, but the credit balance seen on the supplier account and invoice document is in the foreign currency.

A supplier can have credits in multiple currencies by changing the currency on their record before adding an order, or where orders are added for secondary contacts of a company which have different currencies (all credits are against the primary contact). A supplier account with invoices in multiple currencies will have a separate balance for each currency.

Supplier credit

Supplier credits can be used to create the accounting for a credit received from a supplier. It creates no visible returns record and does not allow for printing of a credit document. It will create a PC type accounting journal and update the supplier account with the credit balance.

Foreign currency supplier credits

The currency for a supplier credit defaults to the supplier currency, but it can be changed. The exchange rate defaults to the system exchange rate but can be edited. This rate is used to convert the figures to base currency for financial reporting, but the foreign currency balance will appear on the supplier record.

If a foreign currency supplier credit is marked as paid at the same time, the payment will be created in the same currency and with the same exchange rate. The credit will be marked as fully paid and cleared on the supplier account.

How to enter a supplier credit

  1. Go to Suppliers > Supplier credit.
  2. Search for the supplier (only primary supplier contacts are searchable) or add a new supplier.
  3. Select the tax date and due date. Click +30 days to automatically assign a 30 day due date.
  4. Enter the Credit Reference.
  5. The currency from the contact is shown, but this can be changed if the credit is to be of a different currency. Currency won't be shown when operating a single currency system.
  6. If a foreign currency is selected, the system exchange rate will be displayed. Edit as required.
  7. Enter any descriptive details about the invoice. These will be saved on the accounting journal.
  8. Select the tax code and enter the invoice net or total. The tax amount will be automatically calculated. To manually enter a tax amount, uncheck the Autocalculate tax checkbox.
  9. Select the account code the charge relates to.
  10. To add more rows using a different tax rate or account code click the Add row button and then enter the details.
  11. To simultaneously create a payment and mark this credit as refunded, select the Mark as paid at the same time checkbox, select the bank account and enter a payment reference. The payment will be created in the same currency, with the same exchange rate and for the same amount.
  12. To add a Channel, Project or Lead Source click Extra Options.
  13. Click the Enter Credit button to finish and post the accounting journal.
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