Overview of Purchases

The purchases module within Brightpearl is where you manage purchase orders, receive goods in and can make payments to your suppliers. This diagram shows how the purchases module integrates with the rest of Brightpearl and how purchases are generated:

PO intro

Purchase requisitions and orders can be generated in several ways:

  • Manual entry
  • Importing
  • Automatically using the low inventory report

The purchases module shares data across Brightpearl:

Suppliers (Vendors)

Retrieves supplier information such as name and address, and credit terms and limit.
Updates supplier balances, financial history and the timeline.

Products

Stock tracked and non-stock tracked products or service items can be added to orders to retrieve prices and tax rates.
Inventory levels are updated when items are received, or unreceived on a purchase order.

Accounting

Accounting journals are automatically created by receiving inventory or invoices on purchase orders. Invoicing will update the supplier account balance (accounts payable), record purchases and purchase tax. Receiving inventory will update inventory value (assets) and post the purchases amount which is used for cost of sales accounting.

Reports

The low inventory report allows you to see which items are getting low or are already out-of-stock. Using this report you are able to automatically generate a purchase order ready to send to your supplier. The product list will allow you to see current inventory levels as well as the items currently on order.

Understanding orders & invoices

A purchase is tracked through the purchase process using Purchase Statuses. A pending purchase (not yet sent to the supplier) becomes an order which becomes an invoice, these are all statuses. You can create as many purchase statuses as you need in order to fit your own purchase processes. For example you may want a status for "sent to supplier" or "back order" or "on hold with supplier". You can even give your supplier access to the web portal so that they can acknowledge orders and confirm shipment.

PO status

Orders

When you begin a new purchase order in Brightpearl, it will pick up the default status as defined in the purchase settings. When you send it to your supplier it will automatically be given your "sent" status, for example "placed with supplier".

Invoicing

Every purchase invoice needs to be matched to the relevant purchase order in Brightpearl. An invoice is not entered as a separate record, it is received against the original order to create the accounting and update the supplier account with the amount you owe.

Purchases & inventory

The close integration between purchases and inventory means you can easily add stock tracked products to purchase orders. If you have kept a record of it, you can place orders using the supplier SKU and price.

Receiving Inventory

When you receive the delivery of items you need to book them into your inventory. By marking the items as received on the order they are automatically placed into on hand inventory, updating your accounting asset value at the same time. During the receiving process you are able to print a goods-in note to assist with counting and sorting the items into the correct locations.

Purchases of stock tracked items can be monitored using the Inventory Status. This will tell you whether none, some or all of the items have been received on the order.

PO icons

 
Have more questions? Submit a request

0 Comments

Please sign in to leave a comment.