Accounting module is the core financial engine, which follows double-entry bookkeeping system to manage financial data. It acts as a single source of financial truth which is well integrated across core modules at different stages of Procurement, Sales, Manufacturing, Contracting, which delivers unified financial view of the whole organisation.
Core modules that integrate with accounting are:
- Buying, Selling, Stock, Manufacturing, Subcontracting, Assets, Projects
Feature Suite
Multi-Company Setup
Manage accounting for multiple companies within the same system, while ensuring company-wise accounting & reporting remains separate.
- Set default company for ease-of-access
- Transaction can be mapped to a specific company during entry
Chart of Accounts
At the very core you needs a structured chart of accounts which can encompass all the financial pieces of your business.
- Parents Groups & Child Accounts
- Account Types
- Tree View
Sales & Purchase
Manage purchase, sales & service invoices, where respective accounting entries are posted automatically based on the transaction lifecycle which originates from core modules that are Buying, Selling, Stock, Subcontracting.
- Purchase & Sales Invoices
- Pricing Rule based on Customers, Supplier & Groups
- Shipping Rule Charges based on conditions
- Point of Sales
Assets, Stock & Manufacturing
Although these components belong to their own separate module, its lifecycle have an impact on books of accounts when certain transactions takes place:
- Asset-related activities such as purchase, capitalisation, depreciation, and value adjustments automatically generate corresponding accounting entries.
- Stock movements and manufacturing processes create appropriate accounting entries, enabling accurate valuation and detailed stock reporting.
Ledgers
Manage General Ledger by creating Journal Entries to record accounting transactions & adjustments.
- ERPNext takes care of generating Journal Entries for transactions which follows a lifecycle.
- Adjustments occurring beyond the standard flow can be recorded with Journal Entries.
- General Ledger shows all the accounting transactions & its impact.
Statutory Compliances & Taxes
Manage taxes & statutory compliance reporting specifically tailored for your region/country. Every region has a dedicated Localisation App which introduces fields, reports, integrations helping in seamless filing of tax & compliance returns.
- Indirect Taxes on Purchases & Sales
- Apply Tax Withholding
- E-Invoicing
- See Regional Localisation Apps
Multi-Currency Accounting
Manage multiple currencies for customers, suppliers, bank accounts, while having a different base currency for your company.
- Record transactions in different currency, while having accounting entries in base currency.
- Fetch exchange rates & perform revaluations while recording gain/loss on fluctuations.
Accounts Receivables & Payables
Keep a track of receivables from customers & payables to suppliers to better manage cash flow.
- Track ageing reports for Receivables & Payables
- Ageing can be based on Due Date, Posting Date, Invoice Date
- Report includes voucher reference through which the payable/receivable amount originates
Advances Management
Manage advance payments across customers, suppliers, employees.
- Record advance payment entries & reconcile them to calculate net payable/receivable.
- Adjust advance payments during invoice process.
Payments
Manage inward & outward payments related to supplier & customers
- Send reminders with payment links to Customers
- Raise Payment Request to release payment to a Supplier
- Perform reconciliations to generate Payment Entry
Banking
Manage banking operations & reconciliations seamlessly with the option to manage value added services related to banking.
- Perform deposits, withdrawals & reconcile them against vouchers.
- Issue or receive bank guarantees against purchases & sales, respectively.
- Create Invoice Discounting records against sales invoices yet to be settled.
Subscriptions
Manage recurring plans and automated invoicing for services that occur on a recurring basis.
- Customer Subscriptions: Bill customers for services delivered at regular intervals.
- Vendor Subscriptions: Track and manage recurring services procured from vendors on a fixed frequency.
Budgeting
Manage spending by allocating budgets to any accounting segment, identify & restrict over-spending at different stages of purchase cycle.
- Allocate budgets for Month, Quarter, Half Year, Year
- Budget Distribution can be equal, percentage based or ad-hoc
- Configure threshold calculation logic for flexibility
Deferred Accounting
Manage income & expenses incurred but not yet accrued.
- Configure Items to be processed for deferred accounting.
- Process deferred accounting automatically or manually based on setup
- Generate reports for transaction values that are deferred.
Shareholding Management
Manage equity holding for your organisation, maintain share transfers & view reports.
- Shareholder Masters
- Share Issue, Purchase (Buyback), Transfer
- Reports of Share Balance & Share Ledger
Accounting Segments
Segmentation of company into different business verticals, divisions, regions, markets and generating independent financial reports for profitability & analysis based on these segments can be done with the help of:
- Using Default Accounting Segments: Cost Center, Project
- Create Custom Segments using: Accounting Dimension
Closing of Books
Manage period closures by transferring balances & restricting changes for already closed period.
- Accounting Period: Block creation of transactions after the books are closed for a specific period, with an option to allow specific user role to by-pass restrictions.
- Period Closing Voucher: Transfer Profit & Loss at the end of year to the specified ledger account.
Financial Reports & Profitability Analysis
Generate reports to analyse the financial position of the organisation with the help of various reports.
- Financial Ratios
- Profitability Analysis
- Purchase & Sales Trends
- Consolidated Financial Statements & Trial Balance
- Balance Sheet, Profit and Loss, & Cash Flow Statement
Advanced Sales Features
Sales Commission
Sales Partner can be mapped to transactions, based on which commission reports can be generated for pay-outs.
- Manage targets & generate variance reports
- Setup rate of commission for Sales Partner.
- Assign Sales Partners to a specific customer.
Sales Interest / Dunning
Interest, fees & charges can be collected from customers who fail to settle Sales Invoice within due dates.
- Interest is calculated on the overdue amount & delay days.
- Schedule of charges can be configured based on needs
Loyalty Program
Reward your loyal customers to retain them by issuing rewards points, which can be redeemed against future purchases.
- Setup multiple-tiers based on total amount spent by customer (eg. Gold, Silver, Bronze)
- Define, for how much amount spent, a single loyalty point must be credited
- Configure loyalty points conversion amount in base currency
Promotional Schemes
Extend discounts to customers for a specified period as a part of campaign, or sale period.
- Promotion can be applied to Item, Item Group, Brand or Transaction
- Select whether scheme is applicable to buying, selling or both
- Choose whether scheme leads to discount, free product or both