Table Of Contents
Welcome 3
1. Key Features 3
2. Initial Setup 4
2.1 Items and Pricing 4
2.2 Warehouse 5
2.3 Customers 5
3. Purchase Transactions 7
3.1 Suppliers 8
3.2 Material Request 8
3.3 Purchase Order 8
3.4 Purchase Receipt 9
3.5 Purchase Invoice and Payment 9
4. POS Setup & Transactions 10
4.1 POS Profile 10
4.2 Point of Sale (POS) 11
4.3 Payment & Sales Invoice 12
4.4 Cashier Closing 12
4.5 POS Closing Voucher 13
5. Loyalty Program 14
6. Advanced Features 15
6.1 Multistore Management 15
6.2 Promotional Schemes 15
6.3 Item Variants 15
6.4 Automatic Reordering 16
7. Reports 17
7.1 Sales Reports 17
7.2 Stock Reports 17
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7.3 Accounts Reports 17
8. Case Studies of Retail Companies using ERPNext 18
8.1 Office One 18
8.2 Vedmata Gayatri Trust 18
9. FAQs 19
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Welcome
Hello there, welcome to the ERPNext Retail setup guide. In this document, we will guide you
through the retail cycle and help you get up and running with your POS and other retail needs
in ERPNext.
1. Key Features
Retail store businesses include transactions like sales, goods delivery, and payments
happening at the same time. POS (Point of Sale) module in ERPNext allows you to create POS
Invoices and manage all other functions involved in retail sales.
● Setup POS for multiple branches
● Easy Item checkout
● Real-time view of stock in the warehouses
● Works both online and offline
● Apply promotional schemes
● Autogenerated Material Requests
There are two main aspects to ERPNext Retail: Point of Sale (POS) and Loyalty Program
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2. Initial Setup
To initiate with transactions via your POS, here are some of the masters you must ensure are
configured properly.
2.1 Items and Pricing
An Item is a product or service offered by your Company. Say that your company sells laptops
and also offers maintenance for a brand of laptops. Both the laptop and laptop maintenance
are items in ERPNext. A big differentiator is that the stock count needs to be maintained for
physical products and not for service items.
The term Item is also applicable to raw materials or components of products yet to be
produced (before they can be sold to customers). ERPNext allows you to manage all sorts of
items like raw-materials, sub-assemblies, finished goods, item variants, and service items.
To access Item in ERPNext, go to:
Home > Stock > Items and Pricing > Item
To learn how to set up items in your ERPNext account, use the following links:
User Manual
Video Tutorial
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2.2 Warehouse
Now that you’ve recorded Items, you need a place to store them - Warehouses. ERPNext
Warehouses can have Warehouse managers, separate accounts, and you can store the
address of each Warehouse.
A warehouse is a commercial building for storage of goods. The terminology of 'Warehouse'
in ERPNext is a bit broader and can be regarded as "storage locations". You can create a
sub-Warehouse which could be a shelf inside your actual location. Inside a shelf, there can be
racks, which are sub warehouses to the shelves.
To access Warehouse in ERPNext, go to:
Home > Stock > Settings > Warehouse
To learn more about Warehouses, visit:
User Manual
2.3 Customers
Customers are the parties with whom you transact with and log them in your ERPNext
account.
Transactions that can be made for a Customer are Quotation, Sales Order, Delivery Note,
Sales Invoice, and Payment Entry in general. These are also integrated into the POS system.
To access Customer in ERPNext, go to:
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Home > Selling > Sales > Customer
Learn more about Customers here:
User Manual
Video Tutorial
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3. Purchase Transactions
For most businesses, you may have to track purchases within the System. You would first
need to procure items and store them in your warehouses. Let’s look at the procurement or
buying flow in ERPNext.
The important actions are marked with a dark border, so here you create a Purchase Order
and when it's time to pay, mark it with a Purchase Invoice. Ok, now your actual procurement
flow may have more actions, so let’s go through each of them.
It all starts with a Material Request which indicates that materials are required either for
manufacturing products or replenishing the warehouses since the stock levels have dipped.
To buy items, you may send a Request for Quotation (RFQ) to multiple suppliers. They’ll send
back a Supplier Quotation and you’ll pick the best one. Note that the best one always isn’t the
cheapest, time to ship is also a factor.
After choosing a supplier, you place a Purchase Order with them containing the items and
quantities with any additional terms and conditions if applicable. Depending on your
arrangement with the supplier, an advance payment might be made at this point.
After a Purchase Order comes the Purchase Receipt which denotes that you’ve received the
stock at your warehouse. This changes the stock ledger. This leads to the Purchase Invoice
when you’re billed for the Items that have been shipped. In the end, comes the Payment
Entry to record the payments you’ve made. This changes the accounting ledger.
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3.1 Suppliers
Suppliers are companies or individuals who provide you with products or services.
Transactions that can be made for a Supplier are Supplier Quotation, Purchase Order,
Purchase Receipt, Purchase Invoice, and Payment Entry.
To access Supplier in ERPNext, go to:
Home > Buying > Supplier > Supplier
Learn more about Suppliers here:
User Manual
Video Tutorial
3.2 Material Request
To indicate that items are required, material requests are generated. These are either
generated automatically or can also be created manually.
It can be used to keep a record of the items that are required so that the inventory can be
properly maintained.
To access Material Request in ERPNext, go to:
Home > Buying > Purchasing > Material Request
Learn more about Material Requests here:
User Manual
Video Tutorial
3.3 Purchase Order
By raising a Purchase Order with a Supplier you enter into a promise to be provided with
certain items under certain shipping or other conditions.
A Purchase Order can be created as a fresh standalone record or via the ‘Material Request’ or
‘Supplier Quotation’ DocTypes among others, depending on your process flow.
To access Purchase Order in ERPNext, go to:
Home > Buying > Purchasing > Purchase Order
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Learn more about Purchase Orders here:
User Manual
Purchase Cycle
3.4 Purchase Receipt
After placing a Purchase Order, you may want to record that the Items have reached your
warehouse. To do this, use a Purchase Receipt. Purchase Receipts are made when you accept
Items from your Supplier usually against a Purchase Order. This aids in keeping track of the
ordered items that have or have not been received, at which Warehouse they have been
received and the status of billing for those items.
To access Purchase Receipt in ERPNext, go to:
Home > Stock > Stock Transactions > Purchase Receipt
Learn more about Purchase Receipts here:
User Manual
3.5 Purchase Invoice and Payment
Depending on your arrangements, the supplier will raise a Purchase Invoice with you for the
items he’s selling. It’s a bill against which you need to make the payment. Using ERPNext’s
Purchase Invoice, you can track Advance Payments and Purchase Returns, apply the relevant
taxes as well as have ready-to-export accounting reports. Once the Purchase Invoice has been
generated, you can update its payment status by creating a Payment Entry against it.
To access Purchase Invoice and Payment Entry in ERPNext, go to:
Home > Buying > Purchasing > Purchase Invoice
Home > Accounting > Accounts Receivable > Payment Entry
Learn more about Purchase Invoices and Payments here:
Purchase Invoice
Payment Entry
Once this is done, your Purchase Invoice is marked as ‘Paid’ and your purchase cycle is
complete.
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4. POS Setup & Transactions
4.1 POS Profile
In a POS Profile, you can set defaults like::
1. Users
2. Warehouse
3. Modes of Payment
4. Item Group
5. Customer Group
6. Print Settings
7. Accounting Settings
For example, you can create a POS Profile for Branch A, setting the Customer and Item
Groups to be displayed via the POS view and the accounting defaults for the transactions that
will take place using POS.
To access POS Profile in ERPNext, go to:
Home > Retail > Retail Operations > POS Profile
Learn more about POS Profiles here:
User Manual
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4.2 Point of Sale (POS)
A Point of Sale refers to the time and place where a retail transaction takes place.
For retail operations, the delivery of goods, accrual of sale, and payment all happen in one
event, that is usually called the 'Point of Sale' (POS).
In ERPNext, all Sales and Purchase transactions like Sales Invoice, Quotation, Sales Order,
Purchase Order, etc., can be edited via the POS. You can also use ERPNext POS offline and
sync the created invoices once back online.
To access POS, go to:
Home > Retail > Retail Operations > POS
Learn more about ERPNext POS here:
User Manual
Point Of Sale Video Tutorial
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4.3 Payment & Sales Invoice
A Sales Invoice is a bill that you generate for your Customers against which they make
payments. The POS Sales Invoice will get auto-generated by the System and you can print it
with ease.
The POS Sales Invoice is available by default but can be further customized via the Print
Format Builder.
Learn more about POS Sales Invoice and Payment here:
User Manual
4.4 Cashier Closing
A retail counter may have multiple people operating it throughout the day in different shifts.
Cashier closing in POS allows a cashier to record the sales and other details at the end of
his/her shift.
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Learn more about Cashier Closing here:
User Manual
4.5 POS Closing Voucher
At the end of the day, the cashier can close his/her POS by creating a POS Closing Voucher.
Learn more about POS Closing Voucher here:
User Manual
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5. Loyalty Program
A Loyalty Program allows Customers to earn points by spending a certain amount and lets
them redeem the points against future purchases. For example, on every $10 spent, the
Customer is awarded 1 Loyalty Point. They can then redeem these Loyalty Points during their
next purchase thereby paying a reduced amount.
Loyalty Points are displayed on the Customer’s record, for easy tracking.
Loyalty Points earned by a Customer can then be redeemed against their Sales Invoices.
To access Loyalty Program in ERPNext, go to:
Home > Retail > Retail Operations > Loyalty Program
Learn more about Loyalty Program here:
User Manual
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6. Advanced Features
6.1 Multistore Management
Tracking stock levels and other aspects of your inventory and accounting when you have
multiple stores can be pretty tedious. Using ERPNext, you can add new branches as
Warehouses and analyze their sales, profit and loss, stock movements, and other reporting
dimensions effortlessly. Then these ‘Warehouses’ can be linked to warehouse accounts to get
accurate accounting data.
Learn more about this here:
User Manual
6.2 Promotional Schemes
This feature has been designed to dynamically utilize different pricing rules and discounts
during transactions.
For example, if you would like to initiate a promotional scheme for New Year’s Day in which a
Customer can avail of a discount on a particular item or group of items, you can specify the
discount and items in the Promotional Scheme doctype.
Learn more here:
User Manual
6.3 Item Variants
You may have various items to sell. Among those items, there may be multiple variants. Now,
consider a t-shirt, it can be of different colors and sizes. The different colors and sizes are the
item attributes using which several Item Variants are created. For example, there can be Red,
Blue, and Green t-shirts of sizes ranging from small to medium to large.
An Item Variant is a version of an Item with different attributes like sizes or colors.
Using this feature, you can create a template of an Item and create variations of this Item
based on either some attributes that you have configured or a manufacturer.
Learn more about Item Variants here:
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User Manual
Video Tutorial
6.4 Automatic Reordering
Running out of stock at the last moment is a pain. To tackle this, you can set up automatic
reordering. This creates a Material Request of a pre-set quantity when the stock reaches a
certain level.
Learn more about Automatic Reordering here:
User Manual
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7. Reports
Almost every module in ERPNext has several pre-built reports for your data analysis needs,
which aid in the analysis of your transactional and other data, thereby helping you make
better-informed decisions.
7.1 Sales Reports
The following reports provide an overview of your company's sales performance:
1. Sales Analytics
2. Item-wise Sales History
3. Sales Register
4. Sales Invoice Trends
7.2 Stock Reports
Managing multiple stock shipments along with their location and financial aspects can be
daunting. The following reports are designed to give you more insight into these areas.
1. Stock Ledger
2. Stock Balance
3. Stock Projected Qty
4. Stock Summary
5. Stock Ageing
7.3 Accounts Reports
The following reports are crucial for most companies to be able to analyze their accounts and
financial data.
1. Balance Sheet
2. Profit and Loss Statement
3. General Ledger
4. Trial Balance
5. Accounts Payable/Receivable with Ageing Analysis
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8. Case Studies of Retail Companies using ERPNext
8.1 Office One
Office One is one of the fastest-growing stationery and Office Supplies Companies in UAE.
Click on the link below to read about their journey with ERPNext.
Case Study
8.2 Vedmata Gayatri Trust
Click on the link below to hear Vedmata Gayatri Trust speak about their experience
implementing ERPNext.
Video Testimonial
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9. FAQs
9.1 Can I customize a form and add new fields to it?
You can create custom fields with great ease in ERPNext. For detailed instructions, please
refer to our documentation by clicking here.
9.2 Can I create a custom DocType to map a unique aspect of my process into ERPNext?
Yes, you can create your own DocTypes in ERPNext. Click here to know more!
9.3 How do I create reports to analyze my data effectively?
ERPNext has several standard reports available by default which can be edited and saved for
subsequent usage. However, if you would like to create a custom report, you can do that too
by using the Report Builder, Script Reports, or Query Reports depending on your
requirements. Click here for more information.
9.4 What are the ways through which I can restrict a User’s access to data in my
instance?
Assigning the relevant permissions to your Users is a vital step while setting up your instance.
ERPNext allows for several ways to restrict access to your data, details of which can be found
here.
9.5 I want an email to be sent to a particular Employee for approval when a record is
created. How can that be configured in the System?
This scenario and other similar ones can be set up using Workflows in ERPNext. For
step-by-step instructions, click here.
9.6 How do I set up reminders, status change, or other types of notifications
(Email/SMS/Slack) in my System?
Email and Slack notifications can be configured via the Notifications DocType in ERPNext and
SMS notifications by the SMS Center and SMS Settings DocTypes.
Documentation regarding setting up Notifications can be found here and for SMS Settings
click here.
9.7 Is it possible to customize the formats used to print a document in ERPNext?
Almost every DocType in ERPNext has a standard print format already created for it. However,
if you would like to further customize this, you can create multiple print formats for each
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DocType by either using the Print Format Builder or Custom Script. More information about
this can be found here.
9.8 How do I import my data into ERPNext?
ERPNext has a very robust and user-friendly data importing tool called ‘Data Import’ which
can be utilized to insert new records or update existing records. For step-by-step instructions,
please click here.
We’re here to help
Check out the ERPNext documentation to find help on what you’re looking for.
If you need more assistance, reach out to us using in-app support from your ERPNext
account.
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