Every financial transaction is represented by an accounting journal. Each journal contains all the financial detail of the transaction such as tax date, accounts codes, debits and credits. Every journal created is displayed on the General Ledger.
Most journals in Brightpearl will be generated automatically as a reflection of an action carried out elsewhere, for example, invoicing a sale or receipting a payment from a customer. Manual journals are used to make entries directly to the general ledger. These manual journals can also be saved as templates and used to repeat post the journal with the same or similar entries. It is also possible to edit or cancel a journal in Brightpearl.
If you are unsure about journals we recommend speaking with your bookkeeper or accountant.
Every journal has a journal type which identifies what type of transaction it relates to:
|BP||Bank Payment||Withdrawals made from the bank account|
|BR||Bank Receipt||Deposits made into the bank account|
|BT||Bank Transfer||Money transferred between bank accounts|
Employee expense claims approved
|GO||Goods-out||Cost of goods sold journals created when goods-out notes are marked as shipped|
Inventory corrections to add or remove stock
|JJ||Manual Journal||Manually entered journals|
|LC||Landed Cost||Created when landed costs are allocated against in stock inventory items. Landed costs will be included in PG journals where the allocation happened prior to receiving goods-in|
|OB||Opening Balance||Created via the trial balance import|
|PC||Purchase Credit||Created by receiving a credit against a purchase credit, or a supplier credit is entered|
|PG||Purchase Goods-in||Created by receiving goods-in on a purchase order, or when items are reversed and un-received on a purchase order|
|PI||Purchase Invoice||Created by receiving a purchase invoice on a purchase order, or a supplier bill is entered|
|PP||Purchase Payment||Created when a payment or refund is made against a purchase order/credit or supplier bill/credit|
|SC||Sales Credit||Created when sales return/credit is credited, or a customer quick credit is entered|
|SG||Sales Goods-in||Created when inventory is received on a sales return/credit|
|SI||Sales Invoice||Created when a sales order is invoiced, or a customer quick invoice is entered|
|SR||Sales Receipt||Created when a payment or refund is made against a sales order/credit or customer quick invoice/credit|
|VR||VAT Return||Created when a VAT return is marked as reconciled|
|YE||Year End||Created when an accounting period is marked as closed|
A manual journal can be used to post adjustments directly to the general ledger. A manually entered journal always has the JJ journal type.
If you are unsure about journals and the entries you are making we recommend speaking with your bookkeeper or accountant.
How to enter a journal
- Go to Accounting > Enter journal.
- The date defaults to today's date, to post to a prior date you can change it. The date must be an open accounting period.
- Use the Details section to write a reason for the journal; really useful if you need to investigate the changes down the line.
- On the first row select the nominal account for the entry and then enter the amount in either the Debit or Credit column.
- If tax is applicable on the value select the tax code. By entering a tax code the value will appear as a balance on your Sales/Purchase Tax report.
- Continue to enter journal lines, click the Add row button to add more lines.
- When the total debits = total credits click Save journal to post it to accounts.
The journal will immediately update the relevant accounts.
Journal templates allow manual journals to be saved and repeat posted at anytime. As little or as much detail as needed can be saved on the journal template, with any final details or edits being made at the point the journal is posted to the general ledger.
How to create & post a journal using a template
- Go to Accounting > Enter journal.
- Enter the journal details needed for the template. Any final details or changes can be entered on posting the journal, so any variables can be left blank.
- Enter a name for the template.
- Click the Save journal button. Saving the template will not created any accounting. The template is now saved and listed at the bottom of the journal entry screen.
- To post a journal using the template click Load next to the relevant template. This will populate the journal fields with the saved data.
- Make any adjustments and final entries needed.
- Click the Save journal button. This will post the accounting journal.
Edit or cancel a journal
Journals can be changed but never deleted so no journal ID will ever be missing from the general ledger. Any changes made to a journal require a modification reason to be entered by the user and a full change history is maintained by the system, including who, how and when the journal was changed. Cancelling a journal will automatically set the journal to account code 9999 and zero all the values, but will not delete it.
All journals that are edited in any way will be listed on the Corrections Report.
How to edit a journal
- Search for the journal. If you know the journal ID go to Accounting > Corrections.
- Enter a reason for the modification. This is useful if you need to investigate the changes in the future.
- Make the necessary amendments to the references, nominal codes, values and tax codes. For example, to detach a payment from an invoice, remove the invoice references.
- Click the Save button.
A change history is displayed within the journal record so if required you can reverse the changes by re-entering the details.
Note: A VAT reconciled or Bank reconciled journal cannot be edited unless you unreconcile it first.
How to cancel a journal
- Search for and open the journal. This can be done in a few ways:
Use the quick search box in the top right corner.
Go to Reports > General Ledger and use the filters, such as order ID, invoice ref, journal type.
If you have the journal ID go to Accounting > Correction.
- Open the journal to edit.
- Enter a reason for modification. This will be really useful if you need to investigate the modification down the line, especially if your accountant is checking!
- Click the Cancel button.
This will zero all the values in the journal and change all the nominal codes to "9999 Mispostings Account". The journal will still exist and can be found on the Corrections report. A change history is displayed within the journal so if required you can reinstate it by re-entering the values and nominal codes.
When not to cancel or edit a journal
Editing or cancelling accounting journals will only affect your financial reporting, such as the General Ledger, the Balance Sheet, the Profit & Loss/Income Statement report, as well as the financial details for customers and suppliers.
Editing or cancelling accounting journals will not update orders or inventory. Any corrections to any of the following should be made via the inventory or order records:
- SI - Sales invoice (relating to an order)
- SC- Sales credit (relating to a return order)
- SR - Sales receipt (relating to an order or return)
- GO - Goods-out (relating to a sales order)
- SG - Goods-in (relating to an order return)
- PI - Purchase invoice (relating to an order
- PC - Purchase credit (relating to a return order)
- PP - Purchase payment (relating to an order or return)
- PG - Goods-in (relating to a purchase order)
- IA - Stock correction (relating to adding/removing or changing stock value)
- LC - Landed costs
If changes are made to these types of accounting journals the accounting will not report the same figures as the inventory and orders areas of Brightpearl.
Find and view journals
All journals are recorded on the General Ledger accessed from the Reports menu. The most recently created journal is displayed at the top of the report. The filters can be used to search for journals with specific details or relating to a particular transaction.
When the general ledger is exported, more detail on each journal is provided.
Click on any journal ID on the General Ledger to open and view the journal and journal history.