This is a brief introduction to the Brightpearl accounting module. All the topics are covered in detail within the Accounting section.
Basic accounting for sales
The sales module is where all sales activity takes place, including taking orders, marking goods as shipped or returned, and recording payments or refunds. All these activities are recorded against a sales order or a sales credit, and as these activities occur all the accounting entries will be automatically created.
There are three key points at which accounting is automatically generated for sales orders and sales credits:
- Creating the invoice/credit
- Marking goods as shipped/returned
- Recording a payment/refund
Journals for sales invoices or credits
Invoices are raised against sales orders and credits are raised against sales credits (returns). At the point of invoicing or crediting, an accounting journal will be automatically created to record the sales revenue, tax and accounts receivable/debtors entries.
- Invoices have the journal type of SI
- Credits have the journal type of SC
Journals for shipped or returned inventory
Inventory movements will increase or decrease stock levels accordingly. If cost of sales accounting is on, then shipping out or receiving goods-in on a return will also create accounting journals to increase or decrease inventory assets and record cost of sales as required. If cost of sales accounting is not activated then no accounting is created, a periodic journal should be entered manually to account for cost of sales.
- Goods-out inventory movements have a journal type of GO
- Goods-in inventory movements have a journal type of SG
Journals for taking payment or making a refund
When a payment or refund is recorded it will automatically update the customer account balance and where necessary mark any related orders or invoices as paid. Payments and refunds will also automatically create all the necessary accounting entries to the bank account asset and the accounts payable/debtors control account.
- Recording a payment on a sales order or quick invoice will have a journal type of SR
- Recording a refund on a sales credit or quick credit will have a journal type of SR
Basic accounting for purchases
The purchase module is where purchasing activity takes place, including placing orders, marking goods as received and recording payments or refunds. All these activities are recorded against a purchase order or a purchase credit, and as these activities occur all the accounting entries will be automatically created.
There are three key points at which accounting is automatically generated for purchases orders and purchase credits:
- Receiving the invoice/credit
- Marking goods as received (note that returns are handled as stock corrections)
- Recording a payment/refund
Journals for purchase invoices or credits
Invoices are received against purchase orders and credits are received against purchase credits. At the point of receiving the invoice or credit an accounting journal will be automatically created to record the accounts payable, tax and the inventory value, which gets recorded as "stock received not invoiced", this is reversed out and posted to assets when the items are received into stock. Note that if cost of sales accounting is not on or the invoice is for non-stock tracked items or services, then "stock received not invoiced" is replaced with purchases.
- Invoices have the journal type of PI
- Credits have the journal type of PC
Journals for received or returned inventory
Inventory movements will increase or decrease stock levels accordingly. If cost of sales accounting is on, then receiving in goods will also create accounting journals to increase inventory assets - the opposite entry is made to "stock received not invoiced", which is also used on receiving the invoice. If cost of sales accounting is not activated then no accounting is created.
Returning goods to a supplier is not handled via purchase credits - these items must be removed from stock using a manual stock correction.
- Goods-in inventory movements have a journal type of PG
- Stock corrections have a journal type of IA
Journals for making payment or receiving a refund
When a payment or refund is recorded it will automatically update the supplier account balance and mark any related orders or invoices as paid. Payments and refunds will also automatically create all the necessary accounting entries to the bank account asset and the accounts payable/creditors control account.
- Recording a payment on a purchase order or invoice will have a journal type of PP
- Recording a refund on a purchase credit or credit will have a journal type of PP
The General Ledger
The general ledger is where all accounting entries are recorded, it can be found at Reports > General ledger . Accounting entries are automatically generated by activities carried out in Brightpearl so the general ledger is updated in real time.
The most recent transactions are always displayed first by default but using the filters you can view specific types of journal or account (nominal) codes.
To view the detail of a particular journal, click the ID number.
Brightpearl doesn't have a separate sales ledger or purchase ledger - all this accounting information is automatically posted to the general ledger. Sales and purchase ledger information is all visible using the sales and purchases reporting, or using filters on the general ledger.
Accounts receivable / Aged debtors
This is a report which allows you to see how much each of your customers owe you and how old the debt is.
Go to Customers > Accounts receivable / Aged debtors .
Accounts payable / Aged creditors
Just like your customer debt, your vendor (supplier) debt is easily managed in Brightpearl. Go to US Vendors > Accounts payable or in the UK Suppliers > Aged creditors, to see the list of vendors (suppliers) that you owe money and how old the debt is.
You can send statements to your customers by emailing or printing them. Go to Customers > Accounts receivable / Aged debtors , select the customers to send the statements to and use the batch processing buttons above to email or print statements.
Bank accounts & reconciliation
Bank accounts in Brightpearl are where you track how much money you have moving around on a day-to-day basis and may not necessarily reflect your high street bank accounts. Differences in what's in Brightpearl and what's actually in your bank account are created because as you process transactions in Brightpearl the actual movement of money will take time to clear your bank account. Each time you receive a bank statement you should reconcile your bank account to ensure everything that clears your actual bank account has also been accurately recorded in Brightpearl. This will ensure your actual bank account remains in line with your bank account in Brightpearl.
All your bank accounts can be seen at Accounting > List bank accounts . use the available processes to record deposits, withdrawals and bank transfers.
Financial statements & reports
All the information you're entering goes to build up the reports that help you make educated business decisions.
Profit & loss report
This report shows your financial performance. You will see that the sales and purchases you've entered displayed on the report. Hopefully your sales are greater than your purchases and you can see the bottom line profit.
You can see how easy it is to get a real grip on your financial position, as long as you keep your bookkeeping up to date.
This shows your company's financial position. Note how the sales and purchases are not on the balance sheet, but the profit (or loss) will be added when you close your financial year.
Exploring the dashboard
Once you've created a number of transactions, you will begin to see how the dashboard can help you monitor what's going on in your business. Go to Accounting > Dashboard and you'll see a number of "Widgets" such as the customer and vendor (supplier) debt overview, bank balances and the accounts chart.
If you want to add more widgets click Add /remove widget button in the top-right and select from those available. Rearrange them by clicking and dragging them around the screen. You can also change the settings on some widgets using the Tools icon. Drill down to detailed information by clicking on data within the widgets.