Making vendor payments

There are multiple ways payments made to vendors (suppliers) can be recorded in Brightpearl:

When a vendor payment is entered into the accounting module it will:

  • Create the necessary accounting entries
  • Update the vendor account balance
  • Mark selected invoices/credits as cleared
  • Where invoices relate to orders, those orders will also be marked as paid

PP journals

In terms of the accounting entry, the following is always true:

  •  Monetary transactions (payments and refunds) related to vendors are always recorded on "PP" (Purchase Payment)-type journals.
  • A PP journal will always have at least one row posting to 2100 Accounts Payable (Creditors Control) - whether it's a debit or a credit will depend on whether the transaction is a payment or a refund.
  • A PP journal must always have an invoice reference
  • A PP journal will never have any taxable rows

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A PP journal contains the following:

Field Description
Order ID The order ID of the associated order (if any).
Invoice number

The invoice reference of the associated invoice.

A PP journal must always have an invoice reference. It's a crucial field because it's what's used to allocate the payment.

If the journal relates to a payment on account, the invoice reference will take the form of 'Accnt-[journal ID]'.

PP journals associated with uninvoiced entries are treated as payments on account. When the order is invoiced, the invoice number field will update with the order's invoice reference.

Overpayments (payments on account which were created after an invoice was overpaid) will always have an invoice reference of 'ovr_[Invoice reference]'.

Account/nominal code

The account (nominal) codes the journal posts to.

At least one row must post to the 2100 Accounts Payable (Creditors Control) account.

Base debit The debit value of the row in base currency.
Base credit The credit value of the row in base currency.
Debit  The debit value of the row in the journal's currency. 
Credit The credit value of the row in the journal's currency. 
Project Journal assignments. For PP entries, these will always be blank, unless the journal is being used to write a balance off.
Channel
Lead source
Tax code The tax code associated with each row. For PP entries, these will always be non-taxable (either T9 or -).

Checks (US only)

If you want to record the check number that you paid the vendor with, enter it into the check number box on the payment allocation screen.

This will show on the vendor payments list, from where you can print checks.

Read more about check printing.

Payments on account and overpayments

Occasionally you may prepay for items or end up paying more than what you owe (if, for example, you pay for an order but the order is canceled or an item is removed).

If that happens, the payment is considered "on account". It is available to be used against future orders (or to be refunded).

It will appear on a vendor's financial history and on their payment allocation screen, as well as be included in their account balance.

A payment on account will always have an invoice reference starting "Accnt-", followed by the journal ID.

An overpayment will always have an invoice reference starting "ovr_", followed by the invoice that was overpaid.

Learn more about the payment allocation screen here.

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