Cost of Sales or Periodic Accounting
It's important that you get this setting right, since changing it once you have started trading with live information will cause accounting issues that you'll most likely need to get your accountant to resolve for you. You can tell if you're on Cost of Sales accounting because all stock tracked items on Purchase Orders will have an Asset nominal code (1000 to 1999), rather than a Purchases nominal code (5000 to 7999).
Choose which accounting method you want to use at Setup > Company > Accounting: Nominals.
Learn more about accounting for stock & cost of sales accounting
Setup Accounting Codes
Every time you interact with the stock system, Brightpearl can automatically create all the required accounting entries for you. Set up your accounting codes at Accounts > Chart of Accounts.
Add the following nominal codes as required:
- Stock corrections (add) - When you add items into stock using a stock correction, a debit is created on the item asset code, and a credit is recorded against the stock corrections code. This is typically a Profit & Loss code (5000 to 8000) so that you can see the effect that corrections are making to your profitability.
- Stock corrections (remove) - In a similar fashion to the previous setting, when you use the corrections process to remove items, a credit for the total asset value of the stock is added to the stock nominal code for the items you are removing, and a balancing debit is added to the corrections nominal code. Again, this should be a P&L code between 5000 and 8000.
- Stock received but not invoiced - This nominal code handles the balance when you receive a Purchase Invoice against a Purchase Order before the stock has arrived, and also vice versa - when you receive items into stock before you receive an invoice for the goods.
Define Which Accounts are Used for Specific Processes
Enter Opening Inventory Levels
Run a stock check to count how many of each item you have, then either use the correction process to add items into stock, or create one large purchase order from a fictitious supplier and click "receive stock". You'll need to receive an invoice against the Purchase order so that your accounting is accurate : ensure that all items use the "not rated" or T9 nominal code so that there's no tax implication. Make sure that all the rows on the Purchase order have an asset nominal code (1000 to 1999).
