FAQs about Brightpearl accounting

How do I change my tax scheme?

Your tax scheme setting in Brightpearl is either Sales Tax (USA) or VAT (UK, Ireland etc). Your tax scheme is set at Settings > Tax > Tax settings. Once you have started using Brightpearl and accounting entries exist you cannot change the tax scheme. If you do need to switch schemes you will have to reset all your accounting data at Settings > Data/import > System reset , this will remove all accounting entries and enable you to select a different tax scheme. The ability to reset your data is locked after a certain number of accounting entries have been made to avoid accidental data loss, so you will need to contact us to do it for you.

If you want to change your VAT method between Standard or Cash you can simply change the setting within your Brightpearl account at Settings > Tax > Tax settings > VAT method . Beware that our tax methods are not simply a reporting layer and that your accounting entries can be significantly different. Existing accounting will not be updated to suit your new scheme. You should speak with your accountant about making the switch and deciding on an appropriate time, for example, at the end of a tax period when you are able to complete a VAT return and then make the switch.

Do I use a supplier invoice or a bank payment?

Bank Payment method should be used for payments that are not on credit (those that are paid for at the time of purchase) such as stamps, stationery and smaller items, wage payments, bank interest, VAT payments etc.

The Supplier Invoice method should be used for stock purchases, purchases where the supplier has given you credit, or for payments where you would like to keep a close track of transactions relating to that particular supplier. Examples of this would be telecoms bills, rent payments and so on. Entering supplier invoices will require the balance to be settled with a second entry (allocating the payment to the invoice)

What nominal code do I use?

This is a question best answered by your accountant since they will know your business better than we do. As a guide:

UK Nominal Codes Nominal code type Description
1000-1999 Current assets These are your bank accounts, debtors control account and so on. Payments can be made to or from these accounts. A payment from or to an asset account will also require a matching code, for example a bank payment for stamps will be from account 1200, transaction code 7501 (Postage and carriage)
2000-2999 Liabilities Generally you will not need to use these accounts; Brightpearl will enter information to these accounts automatically. An exception would be Loans or Corporation Tax for example.
3000-3999 Capital Do not post transactions with these codes unless you know what you are doing
4000-4999 Sales All your sales should use one of these accounts. If you want you can split sales up and allocate part of a sales invoice with one code and part of an invoice with another code.
5000-5999 Purchases These codes should be used for purchases that relate directly to your sales (cost of sales), for example Import Duty on products, Carriage invoices from your courier company, packaging costs and so on.
6000-6999 Direct expenses Use these codes for payments such as advertising fees
7000-7999 Overheads These are the codes most commonly used for tracking all your other business expenses, such as travelling, wages, rent, utility bills and so on. There is a code here; 7501; Postage and Carriage, that should not be confused with 5100; Carriage. The 7501 code should be used for non sales related postal expenses (such as stamps for a mailshot). The 5100 code should be used for carriage expenses that relate directly to items shipped (such as postage expenses if you are a mail order company).
8000-9999 Other Do not use these codes unless you know what you are doing.

How do I do a bank reconciliation?

You can find out all about the bank reconciliation and bank matching routines using the documents  here .

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