Chart of accounts and account codes

The chart of accounts is a complete list of financial account codes (or nominal codes) into which financial transactions are posted and from which financial reports are produced.

Brightpearl provides a standard chart of accounts, but it can be rebuilt to meet your accounting needs.

Find the chart of accounts at Accounting > Chart of accounts.

Account types

Every account, or nominal, is assigned an account type.

The account type controls how the account is treated when posting transactions and generating financial reports.

The account types available are different depending on the Brightpearl account localization:

Reserved and default account codes

The following account codes are reserved by the system and must exist:

In addition to the above, the following are default account codes that can be changed later under Settings > Company > Accounting: accounts (nominal codes):

Building a chart of accounts

Brightpearl provides a standard chart of accounts which will allow you to begin using the platform straight away.

If additional accounts are needed, these can be manually added at any time, and unwanted accounts can be deleted, providing it has not been used (no accounting entries have been posted to it).

When transferring historical accounting information from another system, your implementation consultant will import your chart of accounts and opening balances.

When adding new accounts it is important that they are assigned the relevant account type so that financial information is reported correctly.

How to add an account code (nominal code)

1. Go to Accounting > Chart of Accounts.
2. From the left-hand menu, select the account type you are adding, e.g. asset, liability etc. The account type is denoted by the number range in which the account sits.
3. Click the Add a new nominal code button.
4. Make the following entries as required:

   Nominal code name
   The name identifies what this account is used for. It will be displayed throughout Brightpearl wherever you see nominal code fields.

   4 digit code
   Every account requires a code.
   Brightpearl forces specific number ranges to be used for each account type. These codes can be hidden in Brightpearl if you want to use a custom code in the name instead.

   Tax class 
   This is the tax rate which you expect entries into this account to have. If an entry uses a different tax rate it will display on the VAT Exceptions Report. This rate is also used for recording tax on expense claims.

   Note: This setting does not enforce the tax code on the account.

   Is this a bank account?
   If the account is a bank account, it will display on the bank accounts list where you can view a balance, move money, view reports and manage reconciliations.

   Reconcile this account? 
   If this account is a bank account you will probably want to reconcile the transactions that exist in Brightpearl with your actual bank statement to ensure they balance. Select Yes to activate the reconciliation process for this account.

   Show on expenses screen? 
   Select Yes to add this nominal code to the Expense Claim screen. To record tax on expense claims, ensure you also select a tax class.

   Allocate discounts to this account? 
   This will add the nominal code to the payment allocation screen to allow you to enter adjustments. For example, to write off bad debt.

   Is this account active? 
   If you no longer want to use a nominal code you can make it inactive. This will remove it from nominal code field selections throughout Brightpearl. Codes that have been used for transactions cannot be deleted.

   Export Trial Balance map code 
   If you wish to view a trial balance using a different number structure than Brightpearl provides you can enter the reference here. When you export a trial balance you will see this code instead of the Brightpearl code. This is useful for accountants who work with IRIS.

   

5. Save your changes.

How to import a chart of accounts

Warning: Importing a chart of accounts will wipe the existing chart of accounts. It can only be done if there are no accounting transactions in the system!

You will need all your nominal codes listed in a CSV file using the following columns:

1. Nominal Code (must follow Brightpearl nominal code structure)
2. Account Name
3. Is Bank Account (enter yes or leave blank)
4. Is Expense Account (enter yes or leave blank)
5. Is Discount
6. Is Reconcile
7. Tax class code (optional, e.g. T20)
8. Map Code (optional. Use this field for the previous nominal code from your old system)
9. Currency code

Go to Settings > Data/Import > Import accounts

1. Click Import Chart of Accounts.
2. Browse for the file to import.
3. Click the Upload Chart of Accounts (CSV) button.

Hide account codes

Hiding accounts will mean that only the account name will be visible throughout Brightpearl. If you would rather use your own numbering system instead, you can enter a number directly into the account (nominal) code name.

You can find the setting to hide account codes under Settings > Company > Accounting: accounts (nominal codes).

Read more about accounting settings here.