Example journals : purchases

Receiving a purchase invoice (PI)

Invoices are received against purchase orders. At the point of receiving the invoice, an accounting journal will be automatically created to record the purchase cost, tax and accounts payable values.

These types of journals will always record the transaction currency and the base currency, converted using the transaction exchange rate. The supplier account balance will display the transaction currency balance and financial reports will display the base currency value (if they are the same, the exchange rate will be 1.00).

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In the above example, the invoice is received before the inventory has arrived, so asset is increased on the "stock received not invoiced" account code.

Receiving inventory on a purchase (PG)

Each time items are marked as received they will be added into stock and the accounting journal will be created. These types of journals are always in base currency.

Unreceiving inventory on a purchase (PG)

Each time items are marked as unreceived they will be removed from stock and the accounting journal will be created. These types of journals are always in base currency.

Supplier purchase payment (PP)

When a payment journal is recorded it will automatically update the supplier account balance and mark any related invoices and orders as paid.

These types of journals will always record the transaction currency and the base currency converted using the transaction exchange rate. A base currency transaction will show an exchange rate of 1 and therefore the same values for the transaction debit and credits as the base debit and credit.

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Exchange rate gains and losses (PP)

If a payment is made to clear the balance of a foreign currency invoice, but the payment has a different exchange rate from the invoice it is paying, Brightpearl will automatically create an adjustment for exchange rate gains/losses. This ensures that the invoice balance is cleared in both the foreign currency and the base currency. This is important since the supplier account balance is calculated using the transaction (foreign) currency figures but financial reporting reads the base currency figures.

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Exchange rate variance journal (PP)

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Purchase credit (PC)

Credits are raised against purchase credit orders. At the point of crediting an accounting journal will be automatically created.

These types of journals will always record the transaction currency and the base currency, converted using the transaction exchange rate.

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Supplier refund (PP)

When a refund journal is recorded (when money is received from a supplier against a Purchase Credit) it will automatically update the supplier account balance and mark any related credits and returns as refunded.

These types of journals will always record the transaction currency and the base currency converted using the transaction exchange rate. A base currency transaction will show an exchange rate of 1 and therefore the same values for the transaction debit and credits as the base debit and credit.

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Supplier account allocations (PP)

Allocation is the process of matching on account payments, purchase invoices and credits on the supplier account to mark them as cleared without necessarily changing the supplier account balance with an additional payment or refund.

When an allocation is made, an accounting journal will be created which matches up all the invoice credit and payment references.

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