Accounting periods and year end

An accounting period in Brightpearl represents your financial year. This might be a calendar year, e.g. January 1st 2021 to December 31st 2021, or a tax year, e.g. April 1st 2021 to March 31st 2022. Your accounting period is your choice, but accounting periods may not overlap.

In order to process transactions in Brightpearl you will need an open accounting period. Transactions cannot be posted to dates outside of your open accounting periods.

If you attempt to post to dates within a closed period, or where no period exists, an error will be displayed and the process will not be completed.

Year end

At the end of your financial year you should complete a year end process with your accountant in order to finalize your accounting and post profits to the balance sheet.

Things you should complete at year end:

  • Ensure any invoicing you want recognized in the period is completed
  • Reconcile your bank accounts to ensure figures are correct for the period
  • Do a stock take to ensure your inventory asset is correct for the end of period
  • Consult your accountant who will advise on any end of year adjustments needed, such as depreciation or tax adjustments

Moving into a new financial year

Brightpearl will only allow accounting to be posted when there is an open accounting period. You should add a new accounting period for your next financial year in good time so that day-to-day business can carry on as usual. You do not need to close the previous accounting period to do this.

How to open a financial year

You do not need to close your previous accounting period in order to open a new one. This allows you to continue working as usual whilst you finalize your accounts for the year end.

  1. Go to Accounting > Accounting periods.
  2. On the right-hand side enter the dates From and To which the account period will run. Brightpearl will automatically use the dates that follow on from any existing periods.
  3. Click the Create new financial year button.

The period is added to the list. You will now be able to start creating transactions for the dates within this range. You cannot post to dates which are not within an open period.

Preventing further changes during year end

Once you have passed the last day of your financial year you probably won't want any further changes to occur unless you are aware of them. To prevent further changes to last periods accounting use the accounts locking feature - this will lock the accounts up to the chosen date. Only the user who locked the accounts will then be able to make any accounting entries to any dates within the locked period - this includes invoicing and taking payments which will automatically post journals.

How to lock your accounts

Accounting locking is used to prevent transactions being posted on or before a specific date. Use it during your year end. Only the person who lock them can make accounting adjustments.

  1. Go to Accounting > Accounting periods.
  2. In the account locking box enter the date up to which you want to prevent any accounting entries (inclusive).
  3. Click the Lock accounts button.

    lock accounts

No accounting entries can be made on or before this date, except for by the staff member who locked the accounts.

How to un-lock your accounts

Only the user who locked the accounts can unlock them.

  1. Go to Accounting > Accounting periods.
  2. Click Un-lock next to the message stating who locked the period and when. Also find this option at the top of financial reports.

    unlock accounts

Closing an accounting period

When you are ready to complete the end of year, the accounting period is marked as closed.

Closing an accounting period will lock all journals falling within those dates so they can no longer be edited. It will also create a year end journal (type YE) which will zero all the relevant accounts (sales, purchases and expenses) to calculate your profit (or loss) and move the balance into the profit and loss account (3200) to be recorded on the balance sheet.

How to close a financial year

Before closing an accounting period, ensure your accountant has completed all required end-of-year adjustments.

  1. Go to Accounting > Accounting periods
  2. Click the Close period button next to the relevant accounting period

Advisory messages are displayed for the period if there are any partially completed sales. This will display the number of orders that are:

  • Invoiced not shipped
  • Shipped not invoiced
  • Partially shipped not invoiced

mceclip0.pngThese messages link to the sales list automatically filtered to show the relevant sales.

Note: If teams are enabled, then the sales list only displays orders assigned to teams of which you are a member. As such, there may be a discrepancy in the number of orders shown in the advisory message and the number viewable in the report.

Changing or correcting an accounting period

If your accounting period dates are incorrect you can delete the period and re-add it at any time, without it affecting your accounting or profit figure. When the accounting period is re-added for the correct dates it will display the relevant profit figure by reading the journals which fall into the period.

If you have closed an accounting period but now need to make corrections to your accounting, the period can be re-opened. When this is done it will not remove the year end (YE) journal that was created when it was closed.

Any amendments to the accounting will be posted as a separate YE journal when the period is re-closed. Alternatively, you can choose to manually cancel the original YE journal so that when the period is re-closed the posting (with any amendments included) will be posted in full.

How to change accounting period dates

  1. Go to Accounting > Accounting periods.
  2. Click the Delete link next to the accounting period to be changed.
  3. Add a new accounting period using the correct dates.

How to reopen a closed accounting period

  1. Go to Accounting > Accounting periods.
  2. Click the Re-open link next the the relevant financial period.
  3. Find the YE accounting journal posted when the period was originally closed and cancel it. When the period is closed again a new YE journal will be created for the full period. If it is not cancelled then multiple YE journals will be created that will add up to the full period.

    account period


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