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 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.

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:

How to Check Stock Levels in ERPNext?

You can check real time stock available across multiple locations in terms of

• Reserved Quantity - quantity for which orders are received but not delivered.
• Actual Quantity-  actual physical stock lying in the warehouse
• Ordered Quantity- quantity for which purchase orders are raised but not items are not received yet
• Planned Qty- quantity planned in the production orders
• Indented Quantity- quantiy for which indents are raised but purchase orders are not.
• Valuation Rate- fifo or moving average rate for the item 
• Projected Qty = actual+ordered+planned+indented-reserved

To check your stock level, go to Stock --> Reports --> Stock level

To check for a specific item available in particular warehouse use the available filters.

For more information and sign up for a free trial please visit http://www.erpnext.com

How to Create Delivery Notes in ERPNext?

Delivery Note can be created from a Sales Order. However to create a Delivery Note directly, follow steps as shown below.

The Delivery Notes will have the following tabs. Lets have a look at each tab in detail.

The Basic Info tab will capture details related to the customer and the posting date on which the stock ledger entries will be affected. You can mention the lorry and challan details as well.

The Items tab will have a list of items and their quantities to be delivered from a warehouse. You can create a Delivery Note against multiple Sales Orders.

The Ref rate will get fetched from the item master on selection of price list. Changes can be made to the Rate which will calculate the Discount(%) on Ref Rate. The below rate and amount are in customer's currency.

Mention the warehouse from where goods will be delivered so that the stock level gets reduced from that warehouse on submitting Delivery Note. Mention Serial Nos and Batch Nos if applicable to the item. Serial numbers can be separated by a comma.

The Taxes tab will capture the total tax amount. If you have not created a tax template, enter taxes directly. You can select Type based on the following requirements :

1. Actual - when you know the actual amount of tax or other charge to be added to the net total, mention the amount in the Rate column.
2. On Net Total - will be selected when a tax percentage has to be calculated on the net total.
3. On Previous Row Amount - will be selected if a tax percentage needs to be calculated over the previous row tax amount . In this case mention the Row Id.
4. On Previous Row Total - will be selected when a tax percentage needs to be calculated over the total of net total and the previous row tax amount. In this case also mention the Row Id

Select the relevant tax account head applicable. The account head should be created under Chart of Accounts. The tax rate will be mentioned in the account head and will get fetched under the Rate column on selecting the same. 

Creating a tax template will save your time. To see how to create a tax template click on the link http://erpnext.blogspot.com/2011/02/how-to-create-template-for-taxes-and.html

The Terms tab will have the terms and conditions and other additional information which you would want to appear on the Sales Order print format. You can even create a template pull its details. To create a template click on the link http://erpnext.blogspot.com/2011/02/how-to-create-templates-for-terms-and.html

The More Info tab will capture additional information.

The Sales Team will capture the details of the Sales Partner and Sales Persons involved in the sales process and their commission and allocated percentage. The sales team is captured even in the Customer master and can be fetched from there once the customer is selected in the Sales Order.

Now save and submit the Delivery Note. 

Submitting the Delivery Note reduce the stock quantity from the warehouse selected. Also you can email and print the Delivery Note. 

Sales Invoice can now be made against the Delivery Note to book your income.

For more details, please visit www.erpnext.com

Getting Started with ERPNext Account

ERPNext is a web based system which can help you manage your complete business in a smarter way to help you grow your business.

It has following modules which are completed integrated

1. Selling (including CRM)
2. Buying
3. Stocks
4. Accounting
5. Support
6. Projects
7. HR
8. Production

Follow the below links to get started with your ERPNext account

1. Sign-up  for a FREE ERPNext trial account
2. How to Add New Users and Assign Roles in Your ERPNext Account?
3. How to upload letterhead?
4. How to manage customers and contacts?
5. How to manage suppliers and contacts?
6. How to create warehouse?
7. How to create items?
8. How to import masters using csv file?
9. How to upload price list?
10. How to upload opening stock?
11. How to manage chart of accounts?
12. How to create opening accounting entries?
13. How to create templates for terms and conditions?
14. How to create templates for taxes and other charges for sales transactions?
15. How to create templates for taxes and other charges for purchase transactions?
16. How to create/add/edit naming series for transactions?

You can contact our support team at:

1. Live Chat Support
2. Skype: iwebnotes
3. Phone: +91 22 65265364 / 22 65100278
4. Email: support@erpnext.com

We are eager to hear from you and help you grow your business by providing a good quality affordable software.

Cheers
Team EPRNext

How to Manage Customers and Contacts?

You can create Customer master in ERPNext in 2 ways :

1. Directly create a Customer
2. Convert Lead to Customer

Directly creating a Customer
To directly create a customer follow the steps as shown in the figure.

The customer master will have tabs as shown below. We will have a look at each tab in detail.

The Basic Info tab in customer will capture the general details of a customer.

The Customer Type field will have two values - Company and Individual. Select Individual if your customer is an individual person and mention his phone number. This helps in updating the contact master automatically on save. If the customer is a company, you can maintain a list of contacts in Contact Details tab on save.

You can categorize your customers into different customer groups and territories which will help you in better analysis.

Save the customer master. This will also create an account head for the customer in Chart of Accounts automatically.

 The customer master will be saved by the customer name by default. You can save the customer by customer codes as well. For this go to Setup --> Global Defaults --> Selling and select Naming Series in "Customer Created By" field. Refresh the system.

The Contact Details tab will have a list of contacts for the customer. Click on the Add Contact button to add more contacts.

 The following screen will appear in a box asking you for details of the contact. Save the contact.

The More Info tab will capture the credit days and credit limit of the customer. If the total outstanding balance exceeds the number of credit days or the due date exceeds the number of credit days, the system will not permit further transactions unless the customer payment is recorded in the Journal Voucher. However, the transactions can be unlocked by the Credit Controller specified in Global Defaults.

The Sales Team tab will capture the sales persons who will be dealing with this customer. If you are dealing with the customer through a partner, mention so in Default Sales Partner. These details will be fetched in sales transactions when this customer is selected.

The Transaction History tab will capture a list of Quotations, Sales Orders, Delivery Notes and Sales Invoices made for this Customer.

Converting Lead to Customer

Open an existing Lead and click on Create Customer button as shown below.

For free trial, please visit www.erpnext.com