FAQs about Brightpearl accounting

How do I change my tax scheme?

Your Brightpearl account's tax scheme 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 Support 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. Be aware 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, e.g. 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 vendor invoice or a bank payment?

Bank payments 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.

Vendor invoices should be used for inventory purchases, purchases where the vendor has given you credit, or for payments where you would like to keep a close track of transactions relating to that particular vendor. Examples of this would be telecoms bills, rent payments and so on.

Entering vendor invoices will require the balance to be settled with a second entry (allocating the payment to the invoice).

 
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