Brightpearl allows for foreign currency orders and invoicing. All payments, bank accounts and accounting is currently managed in base currency.
All foreign currency sales and purchase orders and invoices are converted to base currency for accounting purposes.
Multiple currencies are added at Settings > Company > Currencies. Each currency can be assigned a single exchange rate. This is the system rate which is automatically applied to foreign currency sales and purchase orders.
How to add a currency
- Go to Settings > Company > Currencies.
- Click the Add currency button.
- Select the currency.
- Enter the currency symbol.
- Select the exchange rate variance account code. This is not currently used, but is ready for when full multi-currency support for payments and bank accounts is introduced).
- Enter the currency exchange rate.
- Click Save.
Managing exchange rates
A single rate can be managed on each currency. If the rate is edited then that new rate will begin being used for all new orders and invoices (depending on settings). See Exchange rates on orders below.
Exchange rates must be updated manually.
How to set exchange rates
- Go to Settings > Company > Exchange rates.
- To enter an exchange rate, click to edit the currency and type the rate.
Exchange rates on orders & invoices
These changes are being introduced in version 4.90 for sales only. Although the new field will be shown on purchases it is not functional.
When a foreign currency order is created it is assigned the system exchange rate. This exchange rate is used to provide an estimate of what the total order value is in base currency. Before an order is invoiced the exchange rate can be manually edited at any time to recalculate the estimated base currency value. At the point the order is invoiced the rate will automatically be updated, unless the rate is set as “Fixed” (set per order).
Auto-updating exchange rates on orders
When an order is invoiced Brightpearl will automatically update the exchange rate to the current system rate (unless the rate is “fixed” on the order, see Fixing order exchange rates) which recalculates the order base value and creates the invoice accounting using that rate. This means that the rate that was applied at order creation or a manually entered rate will be overridden at point of invoice. If the system rate at time of invoicing is the same as on the order then no change is seen.
Fixing order exchange rates
An order exchange rate can be fixed so that it is never automatically updated by Brightpearl. This allows for a rate which has been manually edited on the order to be used for the invoice, regardless of what the system rate is.
Brightpearl will always apply a fixed rate to downloaded sales orders. This is in preparation for more changes that are being introduced with Multi-currency.
Foreign currency payments
Payments can only be entered in base currency. When entering a foreign currency payment you will need to convert it to base using your payment exchange rate and then enter the base currency value into Brightpearl.
Handling exchange rate gains & losses
If the exchange rate for the order payment and invoice are different then this will result in an exchange rate gain or loss. These gains/losses can be entered manually at the same time as the payment, or later as an adjustment only transaction.
To enter an exchange rate gain/loss for an invoice it must be done via the Payment Allocation screen for the contact: