ERPNext Review, Pricing, Features with Pros and Cons

Dive into the world of ERPNext, a cloud-based ERP solution that’s not just another tool, but a comprehensive ecosystem designed to streamline your business operations.

From its robust feature set to its customizable interface, ERPNext offers a blend of flexibility and power that caters to businesses of all sizes.

But like any software, it has its pros and cons. Discover why ERPNext could be the game-changing solution you’ve been searching for, and what you should consider before taking the plunge.

Read further to learn more about ERPNext, in our review we will detail its features, pros and cons with our rating, and a conclusion about why you should use it.

Click on “open” if you want to see exactly what we will talk about in the rest of this article.

ERPNext is a 100% open-source ERP software designed to support various sectors including manufacturing, distribution, retail, trading, services, education, non-profits, and healthcare. The platform is agile, complete, versatile, and aims for both simplicity and power.

It offers a comprehensive suite of features such as financial accounting, order management, HR and payroll, manufacturing, CRM, and project management. ERPNext also includes a fully-featured content management system with blogs, web pages, and forms.

Used by over 10,000 companies worldwide, the software provides real-time views of cash flows, manages the full employee life cycle, and integrates with popular apps to accelerate business operations.

ERPNext specifications

Explore ERPNext’s flexible pricing options designed to fit businesses of all sizes and complexities. With plans ranging from $50 per month to custom pricing solutions, there’s a perfect fit for everyone—from small teams to large enterprises.

Whether you’re looking for managed hosting or considering a self-hosted open-source option, ERPNext has got you covered.

ERPNext pricing plans

Small Business Plan

• • Price: $50 per month
  • Target Audience: Best for teams with around 50 employees
  • Features:
    • Unlimited Users
    • Managed Hosting
    • Product Warranty
  • Trial: Start Free Trial available

Enterprise Plan

• • Price: Custom pricing
  • Target Audience: Best for organizations with complex processes
  • Features:
    • Unlimited Users
    • Managed Hosting
    • Product Warranty
    • Account Manager
    • Priority SLA
    • Phone Support
    • Large DB Support
  • Contact: You need to contact them for custom pricing

Open Source Plan

• • Price: Free (Self-hosted)
  • Target Audience: Great for companies with a tech team
  • Features: Deploy on your own server

ERPNext is a robust and versatile ERP solution designed to streamline various business operations. Its feature-rich platform covers everything from sales and CRM to accounting, human resources, and beyond.

Sales Management in ERPNext

Sales Orders

The Sales Orders feature in ERPNext serves as the backbone of the sales process. It allows businesses to create sales orders that detail the products or services sold, their quantities, and agreed prices.

Once a sales order is generated, it triggers inventory checks and initiates the order fulfillment process. This feature also enables businesses to track the status of each sales order, from creation to delivery, providing real-time updates that help in ensuring timely and accurate deliveries.

Point of Sales (PoS)

The Point of Sales (PoS) feature is tailored for businesses that operate in a retail environment. It integrates seamlessly with inventory management to provide real-time updates on stock levels.

When a sale is made, the PoS system immediately updates the inventory and financial records. One of the standout features is its ability to calculate the exact change to return to the customer, reducing the margin for human error.

It’s designed to speed up the checkout process, thereby enhancing the customer experience.

Customer Relationship Management (CRM)

The CRM module in ERPNext is not just about managing contacts. It offers a 360-degree view of each customer by tracking interactions, sales history, and pending opportunities.

It allows businesses to categorize leads and opportunities based on various parameters like source, likelihood to close, and revenue potential.

The analytics feature within CRM provides valuable insights into customer behavior, sales trends, and team performance. This data-driven approach enables businesses to make informed decisions and tailor their sales strategies effectively.

Business Management in ERPNext

Purchasing

The Purchasing module in ERPNext is a comprehensive solution for managing all aspects of procurement.

It starts with material requisitions, where specific items needed for production or resale can be listed. These requisitions can then be converted into requests for quotations (RFQs), which are sent out to various suppliers.

Once the quotes are received, they can be compared directly within the system, making it easier to choose the best supplier. Purchase orders can then be generated, serving as a formal contract between the business and the supplier.

The system also tracks the status of each order, ensuring that goods are received on time and in the correct quantity.

Human Resource Management (HRM)

The Human Resource Management (HRM) module is a one-stop solution for all HR activities. It starts with maintaining comprehensive employee records, including personal details, employment history, and skill sets.

The leave management feature allows employees to apply for leaves, which can then be approved or rejected by managers.

The payroll feature automates salary calculations, taking into account various components like basic pay, allowances, and deductions. Performance appraisals can be conducted within the system, with features for setting objectives, reviewing performance, and providing feedback.

Asset Management

Asset Management in ERPNext is designed to keep track of all company assets, whether they are tangible items like machinery or intangible assets like software licenses. The system records details about each asset, including its cost, useful life, and depreciation method.

Maintenance schedules can be set up for each asset, and the system will send reminders when maintenance is due. The module also allows for asset transfers between different departments or locations, keeping the asset register up to date.

Accounting

The Accounting module is a full-fledged financial management system. It supports multiple currencies and offers a wide range of features for managing ledgers, bank accounts, and financial reports.

Tax calculations are automated, and the system can be configured to comply with tax regulations in different countries. The module also offers advanced features like deferred revenue recognition and budgeting, making it suitable for businesses of all sizes.

Warehouse Management

Warehouse Management in ERPNext is designed to optimize inventory levels and warehouse space. It offers features for tracking stock levels in real-time, managing the order fulfillment process, and optimizing warehouse layout for efficient storage.

The system can handle multiple warehouses and offers features like batch processing and serial number tracking. It also integrates seamlessly with the purchasing and sales modules, providing a complete inventory management solution.

Project Management

The Project Management module allows businesses to plan, execute, and monitor projects effectively. Projects can be broken down into tasks, and resources can be allocated to each task based on skill sets and availability.

The system tracks the progress of each task and provides real-time updates on the overall project status. Time tracking features allow for accurate billing, and the system can generate detailed reports to analyze project performance and profitability.

Accounting in ERPNext

Multi-currency Support

The Multi-currency Support feature in ERPNext is designed for businesses that operate across borders and deal in multiple currencies. This feature allows you to record transactions in any currency and automatically converts them to your base currency for accounting purposes.

It also provides the flexibility to maintain bank balances in multiple currencies, offering a real-time view of your financial position in each currency. This is particularly useful for businesses that have foreign bank accounts or deal with foreign clients and suppliers.

Tax Calculations

Tax Calculations in ERPNext are not just limited to a single jurisdiction. The system is designed to handle complex tax structures, including those that are applicable in multiple countries. It automates the calculation of various types of taxes like VAT, GST, and sales tax, among others.

The feature also allows for the setting up of tax rules based on specific conditions, such as the location of the customer or the type of product being sold. This ensures that the correct amount of tax is always applied, reducing the risk of compliance issues.

Bank and Payment Reconciliation

The Bank and Payment Reconciliation feature in ERPNext simplifies one of the most time-consuming aspects of accounting. It offers built-in tools that allow you to import bank statements and automatically match them with transactions recorded in the system.

Any discrepancies are flagged for manual review, ensuring that your financial records are always accurate. This feature is particularly useful for businesses that have a high volume of transactions and need to reconcile their accounts frequently.

Advanced Accounting Features

ERPNext goes beyond basic accounting functionalities with its range of advanced features. Deferred Revenue Tracking allows you to recognize revenue over a period of time, in compliance with accounting standards.

Invoice Discounting provides the flexibility to offer discounts on invoices, either as a percentage or a fixed amount.

Shareholder Management allows you to keep track of shares issued, share transfers, and dividend payments, providing a complete solution for managing a company’s equity. These advanced features make ERPNext suitable for businesses with complex accounting needs.

CRM in ERPNext

Lead Capturing

The Lead Capturing feature in ERPNext is designed to be the starting point of your sales process. It allows you to capture essential information about potential customers or businesses that show interest in your products or services.

This can include contact details, the source of the lead, and any initial communications. The feature is highly customizable, allowing you to add custom fields that are relevant to your business. Once captured, these leads can be nurtured through targeted marketing campaigns or direct outreach.

Opportunity Tracking

Opportunity Tracking in ERPNext serves as a dynamic tool for managing potential sales and revenue streams. It allows you to categorize and prioritize leads based on various parameters such as estimated close date, potential revenue, and sales stage.

Each opportunity can be linked to tasks, calls, or meetings, ensuring that you never miss a follow-up. The system also provides real-time updates on the status of each opportunity, helping sales teams to focus their efforts where they are most likely to yield results.

Customer Interactions

Managing Customer Interactions is a core functionality of ERPNext’s CRM module. It serves as a centralized platform where all interactions with a customer are logged and easily accessible. This includes emails, calls, meetings, and even social media interactions.

The feature allows for the scheduling of follow-up activities and sets reminders for them. This ensures that you maintain regular contact with customers, improving relationship management and increasing the likelihood of successful sales.

Analytics

The Analytics feature in ERPNext’s CRM module is a powerful tool for data-driven decision-making. It provides a range of metrics and visualizations that offer insights into the sales process.

This includes sales funnel analytics, which show the number of prospects at each stage of the sales funnel, and conversion rates between stages.

These analytics can be broken down by various factors such as salesperson, region, or time period, allowing for a granular analysis of sales performance. The insights gained from these analytics can be invaluable in optimizing sales strategies and processes.

Buying in ERPNext

Material Requisition

The Material Requisition feature in ERPNext is a crucial first step in the procurement process. It allows departments within a business to formally request specific materials or services that are needed for ongoing projects or production.

These requisitions can be generated based on current stock levels, forecasted demand, or manual input.

Once approved, material requisitions can be converted into requests for quotations or directly into purchase orders, streamlining the buying process and ensuring that the business always has the necessary materials on hand.

Supplier Quotes

Managing Supplier Quotes is made easy with ERPNext’s Buying module. Once material requisitions are approved and sent out as requests for quotations (RFQs), the system allows you to collect and compare quotes from multiple suppliers.

Each quote can be evaluated based on various factors such as price, delivery time, and supplier reputation.

This centralized comparison makes it easier to make informed decisions and select the most suitable supplier for your needs. Once a supplier is chosen, their quote can be directly converted into a purchase order.

Purchase Orders

The Purchase Orders feature in ERPNext serves as the final and formal step in the procurement process. It allows you to create detailed orders that specify the types and quantities of materials to be purchased, the agreed-upon prices, and the terms of delivery.

These purchase orders act as legally binding contracts between the business and the supplier. The system also tracks the status of each purchase order in real-time, from issuance to delivery and payment, ensuring transparency and efficiency in the buying process.

Human Resources in ERPNext

Leave and Attendance

The Leave and Attendance feature in ERPNext offers a comprehensive solution for managing employee time-off and daily attendance. Employees can request leaves through the system, specifying the type of leave and the duration.

Managers can then approve or reject these requests based on company policies and current staffing needs. The system also tracks daily attendance, either through manual entry or integration with biometric systems.

All this data is used to calculate the leave balance for each employee, ensuring accurate and transparent leave management.

Expense Claims

Expense Claims in ERPNext provide a streamlined process for employees to get reimbursed for work-related expenses.

Employees can submit claims through the system, attaching any necessary receipts or invoices. These claims can then be reviewed and approved by designated approvers, usually managers or finance teams.

The system also allows for the setting of expense policies, ensuring that all claims are in line with company guidelines. Once approved, the expense amounts can be directly added to the employee’s next payroll or reimbursed separately.

Salary and Payroll

The Salary and Payroll feature in ERPNext automates one of the most critical and time-consuming HR tasks.

It allows for the setting up of salary structures that include various components like basic pay, allowances, and deductions. The system can handle complex payroll calculations, including tax deductions and other statutory contributions.

Once the payroll is processed, payslips are generated automatically and can be sent to employees via email. The feature also supports multiple payroll frequencies, such as weekly, bi-weekly, or monthly, providing flexibility to meet different business needs.

Recruitment and Performance

The Recruitment and Performance feature in ERPNext covers the entire talent management lifecycle. It starts with job postings, where open positions can be listed on various platforms directly through the system.

Applicant tracking features then allow you to manage received applications, schedule interviews, and make offers.

Once an employee is onboarded, the system provides tools for continuous performance management. This includes setting performance goals, conducting regular reviews, and providing feedback.

The data collected through this feature can be used for making informed decisions on promotions, raises, and other talent management activities.

Asset Management in ERPNext

Asset Maintenance

The Asset Maintenance feature is designed to prolong the life and efficiency of your company’s assets. It allows you to schedule and track regular maintenance activities, such as servicing, cleaning, or calibration.

The system sends automated reminders when a maintenance task is due, ensuring that no critical activities are missed. You can also log any ad-hoc maintenance activities, providing a complete history of all maintenance work done on each asset.

Asset Movement

Asset Movement in ERPNext provides a detailed tracking system for all your company’s assets. Whether an asset is moved to a different department, location, or even issued to an employee, the system keeps a comprehensive record.

This ensures that you always know the current location of each asset, who is responsible for it, and when it was moved. This feature is particularly useful for companies with multiple locations or those that have high-value assets that are frequently moved.

Asset Value Adjustment

The Asset Value Adjustment feature allows you to adjust the book value of assets to reflect their current market value or condition. This is particularly useful for fixed assets like machinery or real estate, which may appreciate or depreciate over time.

The system supports various methods of value adjustment, including straight-line and reducing balance methods. These adjustments are automatically reflected in the company’s financial statements, ensuring accurate reporting.

Manufacturing in ERPNext

Bill of Materials (BoM)

The Bill of Materials (BoM) feature is a critical component of the manufacturing process. It provides a detailed list of all the materials, sub-assemblies, and labor required to produce a finished product.

Each BoM can be versioned, allowing for updates and changes without affecting existing production orders. The system also supports multi-level BoMs, where a finished product consists of various sub-assemblies, each with its own BoM.

Work Orders

Work Orders in ERPNext serve as the operational backbone of the manufacturing process. These are documents issued to the manufacturing floor that specify what quantity of an item needs to be produced and by when.

Work orders are generated based on the BoM and can be linked to specific sales orders or material requests. The system tracks the status of each work order in real-time, providing insights into production bottlenecks and inefficiencies.

Production Planning

The Production Planning feature in ERPNext helps you plan and optimize your manufacturing operations. It allows you to generate production plans based on various criteria, such as material availability, production capacity, and customer demand.

These plans can then be converted into work orders for execution. The system also provides tools for what-if analysis, allowing you to explore different scenarios and their impact on production. This ensures that you always have a realistic and achievable production plan in place.

Website Management in ERPNext

Product Catalog

The Product Catalog feature serves as an online showcase for your business’s products or services. It allows you to list items complete with high-quality images, detailed descriptions, and pricing information.

The feature is highly customizable, enabling you to categorize products, set promotional prices, and even offer bundled products. This makes it easier for customers to browse your offerings and make informed purchasing decisions.

Shopping Cart

The Shopping Cart feature in ERPNext enables a seamless online shopping experience for your customers. They can easily add products to their cart, review their selections, and proceed to checkout.

The system supports multiple payment gateways, ensuring a smooth and secure transaction process. It also integrates with the inventory management system, updating stock levels in real-time as sales are made.

Web Forms

Web Forms in ERPNext provide a versatile tool for customer engagement and data collection. You can create custom forms for various purposes such as customer feedback, subscription sign-ups, or service inquiries.

These forms can be embedded on your website or shared through social media. The data collected is stored in a structured format, making it easy to analyze and act upon.

Inventory Management in ERPNext

Inventory Valuations

The Inventory Valuations feature offers various methods for accurately valuing your inventory. This includes First-In-First-Out (FIFO) and Last-In-First-Out (LIFO) methods, among others.

Accurate inventory valuation is crucial for financial reporting and for understanding the true cost of goods sold. The system also allows for periodic revaluation, ensuring that your inventory values are always up-to-date.

Batch-wise or Serial Numbers

The Batch-wise or Serial Numbers feature provides advanced options for stock management. You can track inventory either in batches, which is useful for items with expiry dates, or by individual serial numbers, which is ideal for high-value or unique items.

This granular level of tracking ensures that you can trace the history of any item, from procurement to sale.

Warehouse Management

Warehouse Management in ERPNext is designed for businesses with complex inventory needs, including those that operate multiple warehouses. The system allows you to track stock levels, order fulfillment status, and even the physical layout of each warehouse.

It supports features like bin management and zone picking, helping you optimize space and improve operational efficiency. The system also integrates with other modules like purchasing and sales, providing a comprehensive inventory management solution.

Advanced Features in ERPNext

Cross-compatibility

The Cross-compatibility feature ensures that ERPNext can be accessed and operated from a variety of platforms and devices. Whether you’re using a desktop, laptop, tablet, or smartphone, the system adjusts to provide an optimal user experience.

This is particularly beneficial for businesses with a mobile workforce or those that operate across multiple locations. The online nature of ERPNext also means that all you need is an internet connection to access your business data, making it a truly flexible and scalable solution.

Metadata Modeling

Metadata Modeling in ERPNext is a powerful feature that allows for extensive customization of the application to suit unique business needs.

Unlike traditional systems that require extensive programming to modify or extend functionality, ERPNext enables you to make changes through a simple, user-friendly interface.

You can add custom fields, modify forms, or even create entirely new modules without writing a single line of code. This level of flexibility ensures that the system can adapt as your business grows and changes.

Comprehensive User Interface

The Comprehensive User Interface in ERPNext is designed with the end-user in mind. It offers a clean, intuitive layout that makes it easy to navigate through various modules and features.

The system includes a dashboard that provides quick access to key performance indicators and other important data.

It also supports drag-and-drop functionality, keyboard shortcuts, and other usability features that aim to enhance productivity. The goal is to provide a user interface that is not just visually appealing but also highly functional, reducing the learning curve and increasing user adoption rates.

ERPNext is a comprehensive and agile cloud-based ERP solution that caters to various business needs across different industries. It offers a wide range of features from financial accounting and CRM to manufacturing and asset management, all designed with both simplicity and power in mind.

The software is open-source, providing the flexibility for extensive customization without the need for programming skills. Its cross-compatibility ensures that you can operate it from multiple platforms, making it a highly flexible and scalable solution for growing businesses.

Pros and Cons

Pros

• Ease of Use: The software is known for its user-friendly interface, which is easy to navigate.
• Customizability: ERPNext is highly customizable, allowing businesses to tailor the software to their specific needs.
• Comprehensive Features: It offers a wide range of features that cover almost all aspects of business management.
• Community Support: The software has a strong community of users and developers, providing valuable support and resources.

Cons

• User Experience: Some users have pointed out that the software could improve its user experience.
• Documentation: The existing documentation is considered to be very technical at times, making it less accessible for non-technical users.
• Flexibility: While the platform is customizable, some users have noted that certain features are inflexible or not as advertised.
• Reporting: The reporting feature, particularly in finance, could be more user-friendly.

ERPNext Review, Pricing, Features with Pros and Cons

• 1Overview
• 2Pricing
• 3Features
• 4Conclusion
• 5FAQ

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