In Brightpearl, the accounting module is integrated into the rest of the system. As actions happen in the system, accounting is created automatically in the form of journal entries, using the principles of double-entry bookkeeping.
There are a number of processes which create accounting. The main ones are:
- Sales accounting
Accounting is created when sales orders are invoiced, marked as paid, and marked as shipped. Similarly, sales credits create accounting when they are marked as credited, refunded, and goods are received back in.
- Purchases accounting
Accounting is created when purchase orders are invoiced, marked as paid, and goods are received against them. Purchase credits create accounting on being invoiced and marked as refunded.
- Inventory accounting
Accounting is created when items are shipped on sales or received on sales credits and purchase orders, when stock takes are performed, when item prices are changed and when manual adjustments are made.
In addition, there are a number of other processes which automatically create accounting, including but not limited to year-end processes, reconciling VAT returns, approving staff expenses and entering landed costs.
The accounting created automatically is considered operational accounting, which is accounting relating directly to day-to-day processes of buying, selling, taking payments and updating inventory levels. See a summary of this accounting in Brightpearl here.
Other accounting, not directly related to day-to-day operations, such as recording wages, rent, interest, accruals or prepayments or any other corrections or adjustments will need to be entered manually, typically by a bookkeeper.
The general ledger is the central collection point for all your financial transactions.
All events that occur throughout the whole of Brightpearl which have a financial impact will be reflected in your general ledger.
The general ledger displays all journal entries in the system and can be filtered by several variables including but not limited to account codes, tax and created dates, and journal types.
Every transaction in Brightpearl related to a sale or purchase must be associated with a contact record. Every contact retains a full financial history. Customers can be sent invoices and statements to inform them of their obligation to pay, while vendors can be sent remittances to notify them of payments made.
Aging reports are available to assist with the collection of cash and payment of invoices.
Each bank account and credit card used by the business should be created in Brightpearl, so when transactions are processed a realistic view can be formed of what is being paid into and out of each account.
Brightpearl does not connect directly to bank feeds - entering transactions such as payments, deposits and balance transfers is done for reference, tracking and accounting purposes. The actual deposits and withdrawals must be made with your bank or payment provider.
Banks can be reconciled to ensure their balances are correct.
Tax is recorded all throughout Brightpearl, from sales to purchases, bank receipts and payments. How tax is applied depends on your tax setup.
Tax is automatically applied to sales and purchases based on rules relating to countries, zones, customers and products, but can also be manually overridden.
Accounting in multiple currencies
Brightpearl is a multi-currency system. This means you can operate in and process transactions in multiple currencies, including product pricing, orders, invoices and payments. Brightpearl accounting manages foreign currency bank accounts, accounts receivable and accounts payable. All inventory and financial reporting is managed in base currency.
Brightpearl provides several key financial reports, such as the balance sheet and income statement.
There are many more reports available for monitoring accounts receivable and payable, bank accounts, tax and payments.
Additional filters are also provided to enable you to get the data you need. All your reports can be exported to Excel for further manipulation, comparison and analysis.
Introducing the principles of double entry accounting, and the various components that make up Brightpearl accounting: customers, vendors, inventory, sales, purchases and journals. Covers journal types, account codes, and an example of operational accounting transactions vs bookkeeping transactions.
A quick overview of the features available as part of the Brightpearl accounting module, and when to use them. Sales, purchases, expenses, bills, quick invoices, journals, etc.