The General Ledger is the central collection point for all your financial transactions. All events that occur throughout the whole of Brightpearl which have a financial impact will be reflected in your General Ledger.
The first step to capturing your transactions is to ensure your chart of accounts is set up. This determines how your accounting information is collected, categorized and reported. If you're migrating from another system you can import your chart of accounts and opening balances.
Next you'll need to define your accounting periods. These periods control the allowed dates for financial transactions.
You will need to learn how financial transactions are created in the General Ledger from sales, purchases and inventory, and how to identify the type of journal you can expect to see for different events occurring from each.
A customer record is required for every sales order and controls their default billing name and address, accounts department email, specific tax details, currency and prices. Credit terms and limits can be assigned to prevent debt getting out of control. A customer account and balance is easily accessible with their full financial history being retained.
Invoices, statements and letters can be sent to notify customers of their obligation to pay, with aging reports assisting with the collection of cash.
Payments received from customers and other sources can be receipted against customers, orders and invoices.
Sales credits are used to refund customers or to give them credit.
A quick invoice or quick credit can be used to increase and decrease a customer account balance respectively without producing any invoice/credit document or detail.
A vendor/supplier record is required for every purchase order and controls their default billing name and address, specific tax details, currency and prices. Credit terms and limits can be assigned to prevent your debt getting out of control. A supplier account and balance is easily accessible with their full financial history being retained.
Invoices are posted directly against a purchase order to record your obligation to pay, with aging reports assisting with managing your debts.
Payments made to suppliers can be entered against supplier accounts, orders and invoices. A remittance advice can be sent to the supplier to inform them of the payment and the invoice that it relates to.
Purchase credits are used to record refunds from suppliers or a credit against their account.
A bill or supplier credit can be used to increase and decrease a supplier account balance respectively without producing any purchase order detail.
Each bank account you have, and even credit cards, should be created in Brightpearl so that when you're processing transactions you can keep a realistic view of what's actually been paid in and out of each account.
Adding a bank account to Brightpearl will not connect to your bank. Entering transactions such as payments, deposits and account transfers in Brightpearl is purely for reference, tracking and accounting purposes. The actual withdrawal and deposit of cash must be made with your bank.
Use the bank reconciliation to ensure that what happens in your real bank account is also what is accounted for in Brightpearl. If you keep on top of that, it is one less thing to worry about when it comes to your end of year.
Bank matching can be used to import an electronic bank statement. This process allows you to automatically create accounting for statement lines not yet processed in Brightpearl, at the same time as matching statement lines to existing entries in Brightpearl.
Tax is relevant throughout Brightpearl; across sales, purchases and bank transactions. How tax is applied depends on your tax setup.
Your Brightpearl account has a tax method, either sales tax or VAT. Tax is automatically applied to sales and purchases based on rules relating to countries, zones, customers and products, but can also be manually overridden.
Brightpearl is a multi-currency system. This means you can operate in and process transactions in multiple currencies, including product pricing, orders, invoices and payments. Brightpearl accounting manages foreign currency bank accounts, accounts receivable and accounts payable. All inventory and financial reporting is managed in base currency.
Importing & exporting accounting
The accounting import routines allow you to migrate data from another system to Brightpearl and the exports allow you to manipulate and store data.
Before migrating your accounting data to Brightpearl you'll need to export it from your old system. Once you have your data files they'll need to be formatted to match Brightpearl's requirements. When your files are ready you are able to import your chart of accounts, opening account balances, customers, suppliers, accounts receivable and accounts payable.
All reports in Brightpearl can be exported into Excel. Additional data can sometimes be exported from the database that isn't available on the screen. Exporting allows you to manipulate the data as you wish by moving columns, combining reports, doing calculations and producing graphs.
Brightpearl can be connected to a number of payment providers which will allow you to processes card payments online. These payments can be transferred to Brightpearl to mark the relevant invoices as paid and update your accounting. It is recommended that you create a separate bank account for each payment provider you use. This will accurately reflect the real world, since money held with one payment provider, e.g. PayPal, will not be visible in you main bank account until you transfer it over. This will also allow you to easily see how much money has been processed through each account and allow you to easily reconcile them should you wish to.
Brightpearl provides several key financial reports, such as the balance sheet and profit & loss. There are many more reports available for monitoring accounts receivable, payable, bank accounts, tax and payments. Additional filters are also provided to enable you to get the data you need. All your reports can be exported to Excel for further manipulation, comparison and analysis.