How to Use Payment Reconciliation Tool?

Payment reconciliation is a tool to define the invoice in unadjusted payment entries (journal voucher). Let's consider an scenario to understand this query.





Looking at above given screen-shot, we can try and learn how payment reconciliation works.

INV00018 is the sales invoice worth 1,436.75. There has been no payment entry against invoice hence its 100% invoice is outstanding.

Table below has pulled up all the unadjusted payment entries with amount still not reconciled against any invoice. To reconcile the said amount against invoice INV00018, they will need to check box against JV and click on “Reconcile” button.

Clicking on reconcile  button will update invoice no. in unadjusted journal voucher.

Thanks,
ERPNext Team
www.erpnext.com

How to Manage Serial Nos. in ERPNext?

Serial nos. are the unique code assigned to each items. With serial nos. item detail and its location is tracked. Serial nos. is generally tagged for item which requires after sales services on it. Hence, businesses mention serial nos. in invoice based on which items delivery and warranty status is updated. In case of after sales service, company refers to serial no. to check invoice and purchase detail of that particular unit of an item.

Note: ERPNext doesn't have functionality to generated barcode for serial nos. Hence you will need to use third party application to manage generate barcode for serial nos.

Let's consider an example of company in sales of desktop and laptop computer. As there is warranty and after sales services provided on items they assign serial nos. on each unit they purchase or assemble.

Status of serial nos.

1. In store - Available for delivery / material issue. Updated when submit GRN or enter serial no. manually.
2. Delivered - Delivered to customer.  Updated when submit serial no.
3. Purchase return -  These are the serial nos. which are returned back to customer.
4. Not in use - Are the units which were define purchase receipt but then canceled due to some reasons. These are the serial nos. which becomes active if tagged in purchase receipt or material receipt again.

How to make item a serialized item?

Its defined in item master. In Item >> Inventory detail >> Has Serial no., selecting "yes" will make it serialized item.

How serial nos. get assigned to each unit of a item?


Serial nos. are assigned as soon as company acquires that item. The transaction made while receiving items are purchase receipt a.k.a GRN (in trading) and backflush (in production).


Let's consider a scenario when company places an order for 10 units of serial nos. and making a receipt for the same. When making purchase receipt, user will need to define serial nos. for serialized item based on receipt qty. If 10 qty of PC received, then user will enter / scan 10 serial nos. in serial no. column of that item.

Based on the serial nos. of items mentioned in purchase receipt, on submission system will created a unique serial no. record for each unit of an item. Also status for serial no. is set as as "in store" which will also reflect in stock level report.

Inventory of serialized item is tightly integrated with qty of serial nos. in warehouse. In stock level report for item in particular warehouse will be qty of serial nos. with status as "in store". So, if item A has 5 qty in warehouse X. It means that there are 5 serial no. for that item with status "In Store".

There are multiple possible actions which can be taken over serial no. in store. It can be delivered or issues for production (as raw-material).

Delivery Note:
When making delivery note of serialized item you will need to mention serial nos. equivalent to items quantity. On submitting delivery note serial nos. status will change to "Delivered". Also, based on days of warranty mentioned in item master, system will calculate exact warranty expiry dates starting from delivery date.

There could also occur a scenario where sales bom is created for an item. And one of the child item is serialized. In that case, in delivery note, sales bom item will be in main item table but that itself is not serialized item. And child item will be listed in packing details table. You will need to provide child items serial no. in packing details serial no. column.

Material issue:
In case of material issue you will need to provide serial nos. which will be consumed while manufacturing of finished good.

How to Use Tax Inclusive Rate Functionality in ERPNext?

Tax inclusive rate functionality allows user to enter tax inclusive rate  items rate table.

As per the standard, user has to enter items rate before tax in pricelist which is fetched in items ref rate.

But for company into retail business, users only know tax inclusive rate of an item. They can use this feature which will back calculate tax and ref rate for them.

To back calculate taxes from tax inclusive rate, you will need to:

1. Mention taxes applicable on item level.
2. Tax inclusive rate in rate / basic rate column on item level.
3. Mention all the possible tax ledgers in tax table and check mark "include in print rate".

P.S.:

When need to calculate discount:

When need to offer discount to customer, mention tax inclusive rate in ref rate instead of basic rate.

How to Manage Production Order?

Production order is confirmation for production to start moving resources and process raw materials to get finished good.

To create new production order, go to:

Production >> Production Order

Let's check submitted production order which will help us understand the feeding data in and next steps after raising production order.

1. Its an item which will be produced.

2. For this production order, selected bill of material will be considered. Items listed in selected bom will reduce once production completes.

3. FG warehouse: Its a finished good warehouse where finished good when produced completely will be transferred.

4. WIP warehouse: Its a warehouse where production will take place. You will need to create your shop floor as WIP warehouse. All your raw-material will be brought into WIP warehouse only.

5. Consider SA (sub-assembly) item: This field has two options, yes / no.

If select yes, you will need to transfer sub-assembly as one unit of item. You should be selecting yes only if you separately maintain stock of sub-assembly.

Select No if you don't maintain the stock of sub-assembly. If no select, in material transfer, it will pull child item mentioned in bom of sub-assembly.

Once production order is submitted, you will find next steps button which starts with material transfer.

Transfer material: 

This transaction actually takes place in stock entry, where all the raw-material will be pulled from selected BOM. 

Target warehouse will be WIP warehouse selected in production order. User will select source warehouse based on the actual stock level for that raw material item.

After selecting all the information, system will reduce stock level from source warehouse and increase the same in WIP warehouse selected.

Status of production order will change to "in process" once raw material is transferred into WIP warehouse.

Backflush:

Backflush is done when in actual, you have ready finished good to be transferred from shop floor to finished good warehouse. At this stage, your raw material will be considered as consumed.

How to Make BOM (Bill of Material)?

Bill of material is list of raw material and operations through which raw material is processed in process of getting converted into finished good.

So bill of material in made for finished good and sub-assembly (for which separate production order is raised).

For making bill of material for an item, there are pre-requisites.
1. It should be stock item.
2. In item master, following production related values should be selected.
     > Allow bill of material - Yes
     > Allow production order - Yes

To make BOM, go to:

Module >> Production  >> Bill of Material >> New Bill of material

Bill of material form for separate tab for finished goods details, operations and finally materials detail.

Basic item detail:

It will list production item for which bill of material is made. BOM for will raw material required for making quantity mentioned in field above.

If default UOM checked, it will be updated in item master also.

BOM operations detail:

Operations table will list work stations in which your raw material will be processed and convert into finished good.

Operations operating cost will be considered in valuation of BOM also.

To make new work station, go to:

Production >> Work station >> New work station

BOM Material list:

It's a list of raw material which will be consumed in production to give finished good. It will list direct raw-materials and sub-assemblies for which separate bom is made. If company does not raise separate bom for sub-assembly item, you can list all the raw material required for sub-assembly in material table itself.

Costing:

Based on operations cost and raw materials rate system will give you bom valuation.

After entering all the detail save and submit this BOM. Only submitted bom will be available for selection in production order.

Price List to Manage Multiple Currency

Price list is the master to list multiple selling rate (before tax) for the item. To learn uploading pricelist, please click here.

As per the recent update in pricelist, you can list item pricelist in any currency and make sales transactions in any currency.

Let's consider the scenario, where the company XYZ Pvt. Ltd. based in India, has INR as the basic account currency.

Company maintains its item price list in USD as against there company default currency.

Now, when making transaction, say sales order, pricelist will be pulled in USD. But we need to make sales order in INR.

Frappe is the item whos selling price is 1 USD. Now we need to make sales order in INR. So,

Customer currency will be INR only. And as it is also a base currency of application, conversion rate remains 1.

Pricelist currency is USD for frappe. But as we need pricing in INR, we mention conversion factor for USD with respect to INR.

Picture above shows ref rate, rate and amount in currency INR currency for selected item. Its what will be reflected in print format.

Let's consider another scenario where accounts basic currency is INR. Am making items price list in USD and making sales order also in USD.

Ref rate, rate and amount (without * ) is columns for customer currency.

Raf rate*, basic rate* and amount* is column for base currency which is calculated after multiplying price list rate with conversion rate
(34.90 (price list) * 53 (conversion rate) = 1,849.70 INR)

And the most basic scenario where accounts basic currency, price list and customer currency is same.

Both pricelist and custom currency remain same with conversion factor 1.

Broadly speaking, now you can manage pricelist and transactions in any currency possible.

E-mail Digest

E-mail digest is a tool to receive auto-generated e-mail report for transactions done in your account.

How to configure e-mail digest?

Enable e-mail digest:

You do all the e-mail digest configuration but if enable is not checked, e-mail wont be triggered to people selected.

Select company, set frequency for auto-generated report and select recipients:

You can set e-mail digest for each company separately.

Email digest can be set for daily, weekly and monthly. System will trigger email report to recipients selected from list.

What is e-mailed to recipients?

E-mail digest will be generated for the items which are checked from list of items.

Sample report:

Customize Form View

Let us understand the ERPNext architecture before we venture to learn form customization tool.

ERPNext is built over WNframework. In this framework, each form is created as a table in the backend. Each table has field and properties are assigned to each field.

Like Sales order is a table, in which sales order fields are defined in rows as "Sales order series" and "customer name". Each of these field has properties like "label", "mandatory", "print hide" etc.

Sales order table:

	Field label	Mandatory	Print Hide	In Filter
Sales order Series	Series	(Check box)	(Check box)	(Check box)
Customer Name	Customer	(Check box)	(Check box)	(Check box)

To store more details of sales order like item detail, we have separate table called "sales order item" table. Likewise, taxes are the separate table in sales order. So, for sales order form, sales order table becomes parent and sales order item, taxes and sales person becomes child table.

Please find below the table structure of each form type.

Transaction	Table	Table Name
Quotation	Quotation	Quotation
	Quotation item table	Quotation Item
Sales Order	Sales order	Sales Order
	Sales order item table	Sales Order Item
Delivery Note	Delivery note	Delivery Note
	Delivery note item table	Delivery Note Item
Sales Invoice	sales invoice	Sales Invoice
	Sales invoice item table	Sales Invoice Item
	Sales invoice tax table	Sales Taxes and Charges
Purchase Order	Purchase order	Purchase Order
	Purchase order item table	Purchase Order Item
Purchase Receipt	Purchase receipt	Purchase Receipt
	Purchase receipt item table	Purchase Receipt Item
Purchase Invoice	Purchase invoice	Purchase Invoice
	Purchase invoice item table	Purchase Invoice Item
	Purchase invoice tax table	Purchase Taxes and Charges
Journal Voucher	Journal voucher	Journal Voucher
	Journal voucher item table	Journal Voucher Detail

With this, lets dive into the form customization tool. "Customize form view" is the tool which allows us to select a table and modify fields property as per your requirement.
You can find customize form view by going to:
Modules --> Setup --> Customize form view

Lets' say I want to make item code field mandatory in sales invoice - item table. What will I select in form type?

1. Form type - RV detail (refer to above table for clarification)
2. Selecting form will pull columns of invoice item table (as row here)
3. To make item code mandatory, select check req. for item code and update.
You will need to do clear cache (from tools --> clear cache) and browser refresh to see the effect in the form.

Please refer to table below to learn about field property.

Field property	Purpose	Field Type
Allow on submit	Lets user update value in field even after submission.	Check box
Default	Value defined in default will be pulled on new record creation	Text box
Description	Gives field description for user understanding	Text box
Hidden	Will hide field in form	Check box
In Filter	Will add this field in report	Check box
Label	Label is the name defined for field which appears in form	Text box
Options	Make field drop down selecting	Text box
Print hide	Will hide this field in print	Check box
Reqd (Required)	Will make that field mandatory	Check box

How to Interact With Cutomers Using Support Ticket?

Support ticket helps you automated tracking customer issues which are received in email. If support ticket configured, it will pull mail received on particular email id and create a support ticket in erpnext account.

Each support ticket is assigned a unique no. which is also sent to customer in auto-reply to his query. This helps customer too in following up with you by indicating support ticket no.

Support ticket can be:

1. Allocated to support personnel
2. Replied via system itself and track complete email communication over a ticket.
3. Tracked by status. Tickets which are pending for response is set as "Open". Tickets which are replied is set as "Waiting for Customer". Tickets which are closed is set as "Closed".

Who can access support ticket?
User will need role of "Support team" for accessing support ticket.

Please follow the steps mentioned below to configure support ticket.

In email setting, you will find two options:

1. Out-going mail setting
2. Support ticket mail setting

Once this setting is done correctly, email received on id mentioned here will be pulled into system and there will be support ticket created with unique id and status as open till support executive replies to it.

Status is also assigned as a tag to ticket. You can filer ticket based on status, allocate to support people. Then support staff can filter support ticket allocated to them.

How to Create a Salary Voucher in ERPNext ?

There are two ways for creating salary slip.

1. Create salary slip for all the employees at once. To learn more about it, click here
2. Create salary slip individually for all the employees.

To create salary slip for employees one by one, follow the steps mentioned below:

1. Open salary slip:

2. Select employee in salary slip. There are three tabs in salary slip:

• Basic info
• Earning and deduction
• Totals

As soon as you select salary slip, info (like earning and deduction details, name, designation, department) will be pulled from employees salary structure.

Also days attended in selected month will be calculated based on leave transactions made (and not on based of attendance record made) for that employee in that particular month.

Salary Slip

Earning and deduction detail:

As mentioned above, earning detail pulls data from salary detail where employees earning and deduction heads are mentioned. But while making salary slip, earning and deduction heads need to be defined based on:

1. LWP (leaves without payment taken by employee in a month)

2. Over time

3. Allowance (which are on actual) etc..

That's why, their is an add of column called modified amount where amount which employee is entitled to is entered.

Checking LWP will affect amount (and give you modified amount) based on leave application made for LWP for that employee is a month. User can add amount for heads like overtime or allowance manually in earning and deduction head.

3. Total:

Add arrear amount and leave encashment if any. Save and submit.

How to over-write records?

All the master which are imported from import data wizard can be over-written also. Lets consider a situation to understand how over-writing works.

I need to change the Default Warehouse for few items.

1. Download template for importing item master for import data wizard.
2. Check "Download with data" .
3. Keep only 3 columns. ID, Item code (primary field) and Default Reserved Warehouse in spreadsheet.
   Note: ID is only required when over-writing data. ID will be same as Item Code.

4.  Put data and then save file in .csv format
5.  In import data wizard, check field: Over-write records with same name?
6.  Browse file the import

Feature Setup

Feature setup lets system manager select feature based on its companies operation. Like if company is not into import and export, then unchecking that will hide fields related to import / export feature. This will make ERPNext account more suitable to your business needs.

How to go to feature setup?

There are four sections in feature setup:

1. Material
2. Selling
3. Production
4. Miscellaneous 

Material modules feature setup:

1. Item Serial No.
   Checking item serial no. will make serial no. field visible in item master. Also stock ledger entries will happen based serial no. entered in sales and purchase transactions.
   
2. Item Batch No.
   It will make batch no. field visible in item master. And it will also keep a check of whether you are entering batch no. or not while sales and purchases.
   
   
3. Brands
   This will let you maintain brand master and select brand for each item. It will also enable brand wise items sales / purchase report. Unchecking brands will simple hide option of brands from setup and item master.
   
   
4. Item Advance
   It will let you maintain item codes (item name) given by your customer. It will help you pull your items in sales transactions based on customers item code mentioned in purchase order. If you don't want to track your customers item code, then uncheck Item advance.
   
   
5. Sales BOM
   Sales BOM is a form where you can list main item which you deal in and other accessories which are supplied with that main item. Consider cell phones, handset is main item while charger, ear phone, CD makes a complete package. If you are not dealing in such product, uncheck.
   
   
6. Item Group
   Is feature which enable user to define categories of item he is dealing in. These categories will be selected for each of the item. It will also give item group wise sales and purchase report. Suggested!

Selling module feature setup:

1. ERPNext also handle transactions when you are dealing you foreigner customer / supplier.
   checking export / import feature allows user to select currency other than his default. If you are not dealing with party outside your home country, you can uncheck it.
   
2. Discount
   Checking for this feature will enable discount offering feature in your sales cycle (sales order, delivery note, sales invoice). If you are not offering discount to your customer, then please uncheck it. Suggested!
   
   
3. Projects
   Its for the company which needs to track project wise sales and purchases.
   
   
4. Sales Extra
   This will activate sales partners / sales person master, allow there selection in sales transactions and also generate a report (sales partner wise commission, sales person wise target variance report, sales person wise sales booked) based on transactions they are tagged in.

Production module feature setup:

1. Manufacturing
   Check only if you are into manufacturing business. This will let you define bill of material for items, manage sub-contracting and raise production orders.
   
   
2. Quality
   Quality feature lets you define inspection parameter for each of the item which will be used for sampling on receipt, delivery or production of item.
   
   
3. Point of sales
   Only for the company into retail business. To learn more about point for sales feature, click here.

Miscellaneous:

1. Page Break
   It will add column in item table of sales and purchase transactions. As name suggest on checking page break after any item will push rest of the detail on new page for printing. Suggested!
   
   
2. More Info
   More info gives you information about transaction creator and modifier with date and time. Suggested!

Multi Currency in ERPNext

Multi currency functionality allows user to maintain price list and making transaction in multiple currency.

A user can define default currency for each company in ERPNext application. For example, you could have 3 companies in your single ERPNext account with different default currency.

Multi-currency transactions possible in transactions:
1. Selling : Quotation, sales order
2. Purchase: Purchase order
3. Stock: delivery note, purchase receipt
4, Accounts: Sales invoice, purchase invoice, journal voucher

When you are making transaction for Test company then INR will be fetched as default with conversion factor as 1.

If i want to make an invoice in currency other than my default currency, then i will select that currency and define conversion rate between select and my default currency.

After selecting currency and mentioning conversion rate, one can select items and put ref rate for respective items.

In items table below you will find columns with duplicate labels like:
Ref rate (for rate in def. currency)
Ref rate* (for rate other then def. currency)

Basic rate (basic rate in def. currency)
Basic rate* (basic rate in other currency selected)

Amount (amount in def. currency)
Amount* (amount in other currency selected)
















Note: No columns of other currency will be editable except basic rate* where user can put discounted amount and discount rate will be calculated automatically.

After saving invoice that's how your transaction will look like:























All ledger posting will be done in default currencies. For example, if you have a bank account of currency USD, even if you do invoicing in INR or any other currency but payment entry would be done  in default currency only. Bank ledger will show balance in USD which is default currency for that company.