Accounting for Sales

Brightpearl handles all of your sales accounting entries for you. This document will help you understand what accounting entries are made each time you update your Sales Orders.

Shipping Inventory

These are the accounting entries made when inventory is shipped (by marking a goods-out note as shipped):

Invoicing a Sale

These are the accounting entries made when a sales order is invoiced:

Nominal Code Rules on Sales Orders

The Brightpearl system follows these rules when creating Sales Orders (and Purchase Orders):

• As items are added to the Sales Order they will be assigned the default nominal code as setup on the customer record (if it exists).
• If there is no customer code, then the product nominal code is used. 
  - If the item is set to manage stock and you have Cost of Sales accounting switched on, then the product stock code (1000-1199 assets) will be used.
  - If the item is not set to manage stock, or if you are not using Cost of Sales accounting, then the product purchase code (5000-5999 purchases) is used.
   
• If Brightpearl can't find a code for the product, it will be assigned to your default sales code which is normally 4000 (Sales). Change this as Setup > Company > Accounting: Nominal codes.
• If you change a nominal code directly on the sales order this setting will be kept, for that order only.

Entering Multi-code Sales Invoices for Stock

Some customer invoices will contain items that you may want to allocate to different nominal codes; for example:

Since this invoice contains product items (that you are tracking the stock of), you must create a Sales Order and then raise an invoice against the Sales Order.

For the Import Duty line, you can add a "misc item" to the order, renaming it to "Duty" (or similar) and setting the nominal code to 5101 accordingly. In this way you can create an order that contains both products and non-products.

This will post the total value of the invoice to the customer account and split up the lines in the accounting database so that you can track revenue more accurately.

Sales Credits & Returns from Customers

When you raise a Sales Credit for items, you can clone the original sale to a Sales Credit. Two accounting journals are created; one when it is credited and another when the stock is received back into stock:

Receive Inventory

These are the accounting entries made when a credit is raised:

Credit

These are the accounting entries created when the returned stock is received:

• The sales, stock and cost of sales nominal codes come from the original sales order
• The debtor control and sales tax accounts are system defaults

Shipping

Shipping is automatically posted the the nominal code chosen at Setup > Company > Accounting: Nominal Codes.

Discount

Discount is automatically posted the the nominal code chosen at Setup > Company > Accounting: Nominal Codes.