Transferring an account balance between contacts Video Lecture | Using Brightpearl: Accounting and Bookkeeping - Data & Analytics

in this video we're going to see how to
transfer account balances between
different contacts in right pal if
you've got business contact so you both
sell to and buy from then you can use
this technique to handle both the
balances on just one account you can
also use this technique to transfer
balances between two customers or
between two suppliers first let's take a
look at transferring the balance from
one customer to another then we'll take
a look at transferring a balance from a
customer to a supplier here on the
accounts receivable screen or customer
debt screen we can see two different
customers each with their own account
balance let's say that company a buys
Company B and you want to move the five
dollar debt from Company B into company
a so that a single payment from company
a will clear all the open invoices of
$15 we're going to use something called
a transfer account which is a virtual
bank account in Brightpearl no actual
money moves around then the balance on
this account is always going to be zero
so here for example we've taken five out
of the customer balance into the
transfer account and then move that
straight on to the other customer so at
the end of the process there's no
balance left create your transfer
account from the chart of accounts
screen if you're in the US you'll need
to create it in the bank section and if
you're in the UK you'll get an extra
tick box in this screen where you can
choose for it to be a bank account I'm
just going to call it a transfer account
and let Brightpearl assign the code for
me you'll end up with a different code
but mine's come out as 1002 now that
we've got the transfer account set up we
need to clear the balance from company
be using this account so go to the
payment allocation screen and clear that
balance in full if you want to you could
put a reference here that's common to
both this one and the next transaction
let's allocate that payment and that
clears the debt of Company B on the bank
account screen you can see the transfer
account has now got a positive balance
we now need to transfer that balance
across the company a there are two ways
to do this the first is using a negative
payment on account and the second is to
enter a quick invoice which is under the
customers menu you might prefer the
quick invoice method because it lets you
use the same invoice number that the
original invoice had so let's search for
company
a make sure you enter the same date as
the payment allocation of the previous
step which could be today or it could be
the original invoice date enter your
details and then the amount balance
transfers don't affect tax so choose not
rated or t9 if you're in the UK if there
is any tax it will have been recorded
into your accounts on the original
invoice the important step is to choose
the transfer account here now that
you've created the invoice against the
transfer account the balance on the
transfer account is now 0 which we can
see from the bank accounts list if we go
to customer debt or accounts receivable
we can see the full amount of $15 is now
owed by company a now what we're going
to do is see how to transfer the balance
from a customer to a supplier in this
business company a are also a supplier
because bright pole won't let you have
both customers and suppliers with the
same company name we've called the
vendor or the supplier company a
suppliers they've sent us goods worth
fifteen dollars and we now have a
supplier invoice what we want to do is
write off the debt that we have to them
with the debt that they have to us so
the first thing we'll do is clear the
supplier debt by going to the payment
allocation screen and choose to pay the
balance with the transfer account then
go to the accounts receivable and take
payment from the customer and again here
we need to make sure we're using the
transfer account these two payments
balance each other out and you can see
on the bank account screen that the
balance on the transfer account is zero
we can also see that there's no customer
debt or no accounts receivable and
similarly the vendor debt or accounts
payable has also been cleared if you
want to transfer balances between
suppliers use the vendor bills screen or
the supplier bills screen in the same
way that we used the customer quick
invoice screen to transfer balances
between customers and that takes us to
the end of the video where we see how to
transfer an account by
between different contacts