Brightpearl bank accounts are used for recording payments, refunds, deposits, withdrawals and transfers - any movement of money which occurs in your real life bank account or on a credit card. This includes PayPal, SagePay, Authorize.net, Amazon or a POS till - these are all bank accounts.
How to add a bank account
Each bank account is a separate account code in your chart of accounts. A new bank account can be added directly into the chart of accounts or can be added via the bank accounts list/summary page.
- Go to Accounting > Bank Accounts.
- Click the Add bank account button.
- Enter the name for the bank account.
- Your current chart of accounts is displayed on the right-hand side, select an available number (in the Current Assets range or leave it blank to let brightpearl choose one.
- Specify whether this account should be reconciled. You can leave all the other settings as they are, but make sure it's marked as Active.
- Click the Save button.
How to add a credit card
If your Brightpearl account is in VAT mode then a credit card is added as a bank account.
If your Brightpearl account is in US Sales Tax mode then a credit card is added as an account code of type "credit card".
A credit card will appear in the bank accounts list and can be reconciled in the same way as a bank statement.
Foreign currency bank accounts
Brightpearl does not handle foreign currency bank accounts. All accounting entries are converted into your base currency. Therefore it is not possible to reconcile the bank balance with your actual bank statement. You will need to convert each statement item individually before reconciling. However, it is far easier to compare the balance of your real account and the account in Brightpearl at the end of the month and enter a manual journal to account for any exchange rate differences.
A bank account must be assigned a currency. All transactions made using the account will then be made in that currency and the balance of the account will also be in that currency. It is not possible to change the currency of a bank account once transactions exist in the account.
Every transaction made into a foreign currency bank account will require an exchange rate to be given. The exchange rate will be used to convert the transaction into your base currency. Both the foreign and the base currency balances are stored on the accounting journal. Since foreign currency bank transactions are converted at the time of entry it is likely that the bank account balance will need revaluing periodically to ensure Brightpearl shows a true representation of your bank asset.
Revaluing foreign currency bank accounts
This applies only when multi-currency is switched on.
Exchange rates are always changing, so to ensure your balance sheet reports accurate asset values of your foreign currency bank accounts, Brightpearl provides a bank account revaluation tool. The tool allows you to set the base currency value of your bank account to a certain value as of a certain date. The exchange rate is automatically calculated and the accounting is created.
How to revalue a foreign currency bank account
This applies only when multi-currency is switched on.
- Go to Accounting > List bank accounts.
- Locate the foreign currency bank account and click Revalue base currency.
- In the pop-up window, select the date up to which you wish to revalue transactions. This will exclude any bank activity entered after this date and display the balance as of that date.
- Enter the base currency value of the bank account at that date.
- Click the Post exchange rate variance journal button.
Payment methods are required to process payments and refunds against orders. The bank account used for the account of order payments is defined against those payment methods.
All payments are processed in base currency, so a single base currency bank account is used per payment method.
A bank account can be assigned to a payment method per currency. This means that when a payment is processed using that method the accounting will automatically be created in the correct bank account.
Bank accounts list / summary
This screen provides a summary view of you bank account balances as represented in Brightpearl. This screen provides access to all bank account tools - adding new bank accounts, moving money using bank transactions, viewing activity with reports and charts, and account management with the reconciliation or transaction import.
Bank accounts and payments can only be managed in base currency. The all bank balances will be displayed in base currency.
Each bank account balance is displayed in the currency of the bank account - the currency base currency valuation can be seen just below. The revaluation tool can be used to update the base currency value of a foreign currency bank account.
Bank activity report
The bank activity report provides a full list of movements of money in and out of the account in Brightpearl.
Bank accounts and payments can only be managed in base currency. The bank activity report will always be displayed in base currency.
All values are displayed in the currency of the bank account. And for each transaction it indicates whether it has been reconciled or matched using the transaction import.
It is currently only possible to download transactions from PayPal. However, transactions from other bank accounts can be imported from a spreadsheet. Read more about importing bank transactions and bank matching
FAQs about bank accounts
Why is the foreign currency bank balance zero, but there is still a base currency balance?
Brightpearl converts each foreign currency transaction to base currency at the time the transaction is entered. Over time the exchange rate changes so new transactions are valued at a different base amount than earlier ones. For example:
Today - Deposit of EUR 120 at 1.2 converts to GBP 100
Tomorrow - Withdrawal of EUR 120 at 1.25 converts to GBP 96
This leaves a EUR balance of zero, but a GBP balance of 4. In order to bring the base currency balance in line with the true foreign currency balance the account needs to be revalued.
I've just gone multi-currency, why can't I change the currency of my bank accounts?
Your existing bank accounts will already contain base currency transactions. A bank account can only represent a single currency so those bank accounts must remain as your base currency. If an account needs to be in a foreign currency you will need to add a new bank account. You can deactivate the old account to ensure that it is no longer used, but ensure that your payment methods are also updated to use the new code at Settings > Company > Payment methods.