Monday, February 21, 2011

How to Create an Item in ERPNext?

ERPNext lets you manage all items that you purchase, manufacture, sell or keep in inventory. 
For each item, you can enter the data related to purchase, sales, production, inventory, accounts, and services.  You can also upload the item master. Click here to understand how to import item master in ERPNext using csv (excel) files.

To add new item, Go To-->Stock-->Item-->New Item

Below screen-shot indicates all the sections under the item master.

You need to enter the mandatory fields in "red" and click on the "Save" button. There are additional details which you can enter in other sections.

  1. Item will be saved with code mentioned in item code. Item will be identified, searched and fetched with item code. This can be alphanumeric.
  2. Item name will be actual name of an item. This will appear in the print format of various transactions.
  3. Item group is used to categorize items on various criteria. Click on the search icon to select the relevant item group. Click here to learn how to manage item groups.
  4. Item description will also be fetched into transactions like quotation, sales order, indent, purchase order and appear in the print format. 
  5. Description HTML field will be generated after attaching an item image as an attachment, and then clicking on "add image button". If item image attached here, it will be pulled in transactions also.
  6. Multiple brands can be created by clicking on "+" icon. You can select the relevant brand in the item master.

  1. UoM stands for unit of measurement of an item. It's that UoM in which system will maintain stock of this item.
  2. Stock item: If stock stock selected "yes" for an item, system will do stock ledger entries for this item and give stock level report also. If "no" selected (mostly for services items), no stock level for that item.
  3. Valuation method: There are two options for maintain valuation of stock. FIFO (first in - first out) and moving average. Item valuation will be maintained based on option selected here.
  4. Default Warehouse selected here will be fetched in transactions when this item is selected.
  5. Allowance Percentage: User will be allowed to accept and delivery more qty than mentioned ordered qty by allowance percentage mentioned.
  6. Re-order Level: Is the stock level at which order has to be placed with supplier for procurement.
  7. Minimum Order Qty: Is the quantity below which system wont accept purchase order for this item.
  8. Is Asset Item: Is the item for which stock level entry will be done in fixed asset warehouse only.
  9. Has Batch No.: Before stock transactions, you will need to create batches and mentioned the same in receipt and delivery transactions.
  10. Has Serial No.: Each unit of an item received and sold will be assigned a serial no. You can scan serial no. into serial no. field.
  11. Warranty Period: It will be assigned to serial no. from date of invoice.
  12. End of life: After particular date selected in this field, system won't be available for sales and purchase item.

  1. Purchase Item: If selected "yes", it will be available for purchase transactions.
  2. Lead time: Is the time taken for receiving good from day it was ordered. If lead time provided, required by date for an item in purchase requisition will be calculated automatically.
  3. Default Expense Account: If selected, will be fetched in purchase invoice for this item.
  4. Default Cost Center: If selected, will be fetched in purchase invoice for this item.
  5. Buying Cost: Will be updated for item based on purchase transactions.
  6. Last Purchase Rate: Is the rate at the item were purchase last time.
  7. You can purchase item in UoM other than its standard UoM. To maintain stock level, you can select purchase UoM and put conversion rate with respect to stock UoM. For example, item ABC is stored in nos. but purchased in Kgs. And each Kg of purchase gives me 3 nos. of ABC.
    1 Kg = 3
  8. Manufacturer: Here, you can enter items detail like manufacturer and manufacturers part no.
  9. Also, you can maintain suppliers item code.

  1. Is Sales Item: Item marked "is sales item - Yes" will be available for selection in transactions like quotation, sales order, delivery note and sales invoice. Item marked no won't be available.
  2. Is Service Item: Item marked services item yes will be available for after sales transactions.
  3. Allow samples: System will allow you to make delivery note at zero rate for these items.
  4. Max Discount: You won't be able to offer discount more than mentioned here.
  5. Default Income Account: Income account selected here will be fetched automatically in sales invoice for this item.
  6. Cost Center: Cost center selected here will be fetched automatically in sales invoice for this item.
  7. You can define ref rate (selling rate before taxes) for items in this table. To learn more about pricelist, please click here.
  8. You can track customer code for same item in this table.

In Item Tax table, you can list all the tax ledgers with tax rate applicable in sales and purchase transactions.
Its very important for company to mention tax rate applicable on item here which has different tax rate applicable for items they deal in. If you select item in sales / purchase transaction, with same tax ledger as mentioned above, then you need not mention tax rate for them. It will be pulled from item master only. Or even if you mention tax rate applicable there, it will calculate tax rate on item mentioned here.

If inspection required selected Yes for an item, system will give you notification when making receipt and delivery transactions for this item.

Also, you will be able to make quality inspection report against delivery note and purchase receipt considering parameters mentioned above.

  1. Allow Bill of Material: Select "Yes" for this field if its finished good or sub-assembly. It will allow to make bill of material for this item. If marked no, then you will be able to select it as raw material for other FG or sub-assembly item.
  2. Allow Production Order: As name suggest, select "yes" for item you raise production order in the system.
  3. Is sub-contracted Item: You will be able to do sub-contracting transaction for this item, if selected Yes. To learn more about sub-contracting, click here.

For more information visit

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