ERPNext Technical Guide: Complete Business Automation Setup

1. Introduction to ERPNext Business Automation

ERPNext is a full-stack open-source ERP that automates accounting, sales, inventory, HR, projects, and manufacturing workflows. Modern deployments require both functional setup and technical automation using scripts, hooks, scheduler jobs, and API integrations. This blog covers all major configurations required to automate a company end-to-end.

Workflow (High-Level)

Company Setup → Masters → Settings → Workflows → Automation → Testing → Go-Live

2. Company Setup Configuration

A company in ERPNext defines fiscal settings, defaults, branding, and legal structure. Without a properly configured company, transactions may produce incorrect GL postings.

Steps

1. Go to Accounting → Company
2. Enter company name, abbreviation, base currency
3. Set default letterhead
4. Set default country, timezone
5. Define GST/VAT settings

Table – Key Fields

3. Fiscal Year, Period Closing & Accounting Periods

ERPNext automatically creates fiscal years, but large organizations may require multiple periods for compliance.

Example

A retail business may create 12 monthly accounting periods for granular performance reporting.

Steps

1. Go to Accounts → Fiscal Year
2. Define start and end date
3. Enable “Auto Year Closing”

4. Chart of Accounts Customization

Chart of Accounts (CoA) defines the GL structure.

Table – Sample CoA Mapping

Workflow

CoA → Accounting Dimension → Ledger Posting → Financial Reports

5. Currency & Exchange Rate Automation

ERPNext supports dynamic exchange rates using API-based integration.

Code – Server Script to Auto-Fetch Exchange Rate

import requests
rate = requests.get("https://api.exchangerate-api.com/v4/latest/USD").json()
doc.conversion_rate = rate["rates"]["INR"]

6. Warehouse, Batches & Stock Valuation Setup

Correct warehouse structure helps in costing, reports, and inventory movements.

Steps

1. Create Main Warehouse
2. Create child warehouses (RM, FG, WIP)
3. Enable Batch/Serial if required

Table – Warehouse Hierarchy

7. Item Master Technical Configuration

Items include stock settings, valuation, barcode, variants, brand, and tax rules.

Example

A chemical manufacturing company uses batch control + expiry date + strict UOM rules.

Code – Client Script for Auto UOM Validation

frappe.ui.form.on("Item", {
    uom: function(frm) {
        if(frm.doc.uom !== "Kg") {
            frappe.msgprint("UOM must be KG for raw materials.");
        }
    }
});

8. Price Lists & Pricing Rules

ERPNext supports dynamic price rules with conditions.

Table – Price Rule Examples

Workflow

Item Price → Price List → Pricing Rule → Sales Order

9. Taxes, GST, VAT & Automatic Tax Rules

Tax Templates automate calculation.

Steps

1. Create tax account
2. Create Sales Tax Template
3. Add conditions (HSN/SAC)

Example – GST Template

10. Sales Cycle Automation (Quotation → SO → DN → SI)

ERPNext supports full workflow automation.

Workflow Diagram

Quotation → Sales Order → Delivery Note → Sales Invoice → Payment Entry

Code – Auto-Convert Quotation to Sales Order

so = frappe.get_doc(frappe.copy_doc(doc))
so.doctype = "Sales Order"
so.insert()

11. Purchase Cycle Automation

Automation reduces manual PO creation.

Steps

1. Set Reorder Level
2. Enable “Auto Reorder”
3. Create Material Request from shortage
4. Auto-Convert to Purchase Order

Table – Auto Reorder Example

12. Auto Stock Reconciliation & Valuation

Companies need real-time stock adjustments.

Example Use Case

A warehouse performs stock audit monthly.

Steps

1. Generate Stock Balance Report
2. Adjust Qty
3. Submit Stock Reconciliation

13. Workflows & Document Approval

Workflows automate approvals, prevent unauthorized actions.

Workflow

Draft → Review → Approve → Submit  
Roles: Sales User → Manager → Accountant

Table – Approval Levels

14. User Permissions, Roles & Access Control

ERPNext uses a role-based permission system.

Steps

1. Assign roles
2. Define User Permissions
3. Restrict by Company/Warehouse

Example

A UAE group has 4 branches and restricts users to specific company.

15. Email Automation & Notifications

ERPNext automates transaction emails, alerts, and reminders.

Code – Auto Email Sales Invoice

frappe.sendmail(
    recipients=doc.customer_email,
    subject="Your Invoice",
    message="Thank you for your purchase."
)

16. Scheduler Jobs & Background Workers

Schedulers automate nightly jobs.

Common Jobs

Bench Commands

bench doctor
bench schedule

17. API Integration & Webhooks

ERPNext supports REST APIs for integrations with CRM, POS, E-commerce.

Example – Fetch customer list

GET /api/resource/Customer

Webhook Use Case

Auto-notify CRM when new lead is created.

18. Custom Scripts (Client & Server)

Custom Scripts help automate behavior without modifying core.

Code – Auto-fill address on customer

frappe.ui.form.on("Customer", {
    refresh(frm) {
        frm.set_value("country", "India");
    }
});

19. Data Import, Migration & Master Upload

Migrating from Excel is common for new implementations.

Table – Import Templates

Steps

1. Download Template
2. Fill Columns
3. Import & Validate Data

20. Final Go-Live Testing, UAT & Deployment

Before going live, UAT ensures all workflows are validated.

Go-Live Checklist

Steps

1. Verify data migration
2. Test all workflows
3. Lock previous period
4. Start production usage

Conclusion

ERPNext is one of the most powerful open-source ERP platforms, and successful implementation requires a clear combination of functional setup, technical automation, and business workflow alignment. In this blog, we explored 20 critical technical areas—from initial company configuration to advanced workflow automation, scheduler jobs, API integrations, custom scripts, and stock/finance handling.

A well-configured ERPNext system ensures:

• Accurate financial posting
• Real-time inventory visibility
• Reliable workflow approvals
• Automated pricing, taxation, and notifications
• Smooth coordination between sales, purchase, and manufacturing
• Secure data, backup, and stable deployment
• Faster onboarding and minimal manual work