ERPNext for Exporters: LUT, Export Invoices & Forex

ERPNext for exporters covers the daily paperwork that slows export businesses down: invoices in foreign currency, exports under a Letter of Undertaking (LUT) without paying IGST, shipping bill details, packing lists and the exchange gain or loss when payment finally arrives. With the free India Compliance app, ERPNext handles Indian GST rules for exports alongside your normal domestic sales.

Who this is for: merchant and manufacturer exporters in India, including Kerala's spice, seafood, coir, cashew, garment and handicraft exporters, plus software and service exporters, who want accounts, stock and export documents in one system.

What makes export accounting different

A domestic invoice is simple: rupees, GST, done. An export sale brings extra steps:

• The invoice is in a foreign currency, but your books are in rupees.
• Exports are zero-rated under GST, and you must choose whether to export under LUT or pay IGST and claim a refund.
• The invoice must carry the right declaration and, later, shipping bill details.
• Customs, freight and insurance documents depend on the Incoterm you agreed with the buyer.
• Payment may arrive weeks later, at a different exchange rate, and you need to track realisation.

Exporters who manage this in spreadsheets often find the GST return, the bank statement and the shipping file do not agree. ERPNext ties them together.

Setting up ERPNext for exports

Setup item	What to configure
Overseas customers	Customer with GST category "Overseas", billing currency and a receivable account (in INR or the foreign currency)
Currencies and rates	Enable the currencies you bill in; exchange rates can be fetched automatically or entered daily
Tax templates	Templates for export without payment of tax (LUT) and export with IGST
LUT details	Your LUT reference for the financial year, printed on export invoices through the print format
Export print formats	Commercial invoice and packing list with Incoterm, ports, marks and numbers, HS codes and weights
Accounts	Exchange gain/loss account, and separate bank accounts for foreign currency receipts if you hold an EEFC account

If you have not set up GST yet, start with our guide to ERPNext GST setup with the India Compliance app; export settings build on it.

Export invoices under LUT

Most regular exporters file an LUT on the GST portal (Form GST RFD-11) for each financial year and export without paying IGST. In ERPNext the flow is:

1. Create the Sales Invoice for the overseas customer in their currency.
2. Mark it as an export without payment of tax. The India Compliance app treats it as a zero-rated export and leaves IGST at zero.
3. Print the declaration. The invoice states that the supply is meant for export under LUT without payment of IGST, with your LUT reference.
4. Generate the e-invoice if your turnover requires it; exports have their own supply type in the e-invoice schema.
5. Add shipping details such as port code, shipping bill number and date once customs clearance is done, so they flow into GSTR-1.

Remember to renew the LUT every financial year. A simple reminder in ERPNext before 1 April helps avoid exporting without a valid LUT.

Exports with payment of IGST

Some exporters pay IGST on the export and claim a refund. ERPNext can apply an IGST template to the export invoice, and the invoice and shipping bill details then support the refund process. Which route suits you depends on your input tax credit position and cash flow, so decide with your CA.

Multi-currency billing and forex gain or loss

When you raise a USD invoice, ERPNext records both the USD amount and the INR value at that day's exchange rate. When the buyer pays, the Payment Entry records the rate on the day the bank converts the money. The difference is posted automatically to your exchange gain/loss account.

Event	Example	What ERPNext records
Invoice raised	USD 10,000 at ₹83.00	Receivable of ₹8,30,000
Payment received	USD 10,000 converted at ₹83.60	Bank ₹8,36,000; exchange gain ₹6,000
Month end, unpaid invoices	Rate changed since invoicing	Exchange Rate Revaluation adjusts open balances

The numbers above are only an example. For more on how ERPNext posts currency entries, see our guide to multi-currency accounting in ERPNext.

Tracking payment realisation

Export proceeds must be realised within the time allowed under foreign exchange rules. Custom fields on the invoice or payment can record the bank realisation reference and date, and a report can list export invoices that are still unrealised and how old they are. This makes bank and audit queries much easier.

Shipping documents and Incoterms

• Incoterms: recent ERPNext versions include an Incoterm field on sales documents, so FOB, CIF, CFR or EXW terms appear on quotations, orders and invoices.
• Packing lists: the Packing Slip against a Delivery Note records packages, net and gross weights, and can be printed as a packing list.
• Commercial invoice: a custom print format adds consignee and notify party, ports of loading and discharge, vessel or flight, container numbers and HS codes.
• Freight and insurance: under CIF, freight and insurance can be shown separately on the invoice and their cost booked against the shipment for margin reports.

Stock, batches and costing for exporters

Food and agri exporters often need batch tracking, for example lot numbers for spices, seafood or cashew, with packing and expiry dates. ERPNext's batch features keep the lot number from purchase or production through to the export invoice, which helps when a buyer asks for traceability. Landed cost vouchers add inward freight and clearing charges to stock value, so export margins reflect real cost. Manufacturer exporters can use BOMs and work orders as described on our ERPNext manufacturing page.

Export incentives and refunds

Refunds of IGST or accumulated input tax credit, and export incentives under government schemes, are receivables until they are credited. Record each claim as a receivable with its reference number, and match it when the bank credit arrives, so management can see how much is still pending. The scheme rules change from time to time, so confirm eligibility and rates with your CA or customs broker.

Service and software exporters

Software, design and consulting firms that bill overseas clients follow the same pattern without the shipping documents. Invoices are in the client's currency, marked as export of services under LUT, and payments go through the same forex logic. Timesheets and projects can drive the billing.

Reports exporters rely on

• Export sales register by country, buyer, currency and Incoterm.
• Unrealised export invoices with ageing.
• Exchange gain/loss by month.
• GSTR-1 export details with shipping bill information.
• Shipment profitability including freight, insurance and landed cost.

How Nexeves helps exporters

1. Review of your current export invoices, LUT, packing lists and bank documents.
2. Setup of GST, currencies, tax templates and export print formats through our ERPNext implementation services.
3. Customisation for realisation tracking, batch traceability and buyer-specific documents.
4. Training for your accounts and logistics team, in English or Malayalam.

Frequently asked questions

Can ERPNext create export invoices under LUT?

Yes. With the India Compliance app, an invoice to an overseas customer can be marked as an export without payment of tax. IGST stays at zero, the LUT declaration is printed, and the invoice is reported as a zero-rated export.

Can I invoice in USD or EUR in ERPNext?

Yes. ERPNext supports multi-currency invoicing. Each invoice stores the foreign currency amount and the rupee value at the exchange rate of the day.

How does ERPNext handle exchange gain or loss on export payments?

When payment is received at a different rate from the invoice, the Payment Entry posts the difference to an exchange gain/loss account automatically. Exchange Rate Revaluation can adjust open balances at month end.

Does ERPNext record shipping bill details for GST?

Yes. The India Compliance app provides export fields such as port code and shipping bill number and date on the sales invoice, which are used in GST reporting.

Can ERPNext print a packing list and commercial invoice?

Yes. Packing Slips record packages and weights, and custom print formats produce the commercial invoice and packing list with Incoterms, ports, HS codes and container details.

Is ERPNext suitable for small exporters?

Yes. There is no licence fee, so small exporters pay only for setup, hosting and support. Many start with invoicing, currencies and GST, and add batch tracking or realisation reports later.