ERPnize Solutions - Implementation Guide

ERPNext Implementation Guide for Service Companies

 · 6 min read
ERPNext Implementation Roadmap for Service Companies

Initial Setup Guide

Getting ERPNext ready for your service company in five key steps:

1 Company Setup

  1. Setup > Company > New Company
  2. Enter name, currency, fiscal year, address, tax info
  3. Load or customize service chart of accounts
Screenshot: Company Setup Form

2 User & Permissions

  1. Setup > Users > New User
  2. Assign roles: Administrator, Sales Manager, Accounts Manager, etc.

Tip

Start with tight permissions to protect data.

3 Service Categories

  1. Stock > Setup > Item Group
  2. Create groups: Document Authentication, Visa, Notary, Translation…

4 Fiscal Year & Periods

  1. Accounting > Setup > Fiscal Year
  2. Define start/end dates and optional sub-periods

5 Global System Settings

  1. Setup > Settings > System Settings
  2. Configure formats, email, language, time zone

Important

Finalize taxes and fiscal setup before entering transactions.

Lead to Customer Workflow

Turn prospects into paying clients via ERPNext CRM:

Process Flow

Lead

Opportunity

Quotation

Customer

1 Create Lead

  1. CRM > Lead > New Lead
  2. Enter name, contact, source, status, notes

2 Convert to Opportunity

  1. Open Lead > Create > Opportunity
  2. Fill in type, expected close date, details, assign

Service Tip

Detail document types, jurisdictions, timelines.

3 Generate Quotation

  1. From Opportunity: Create > Quotation
  2. Add items, prices, T&Cs, taxes; submit and email

4 Create Customer

  1. Open Lead > Create > Customer
  2. Enter group, territory, payment terms, tax IDs

5 Manage Records

  • Add contacts, custom fields, pricing rules
  • Attach contracts and agreements
CRM Dashboard Configuration
  1. CRM > Dashboard
  2. Add widgets: Open Leads, Conversion Rate, Pipeline by Service
  3. Enable email digests

Sales Process (Quotation to Invoice)

Link quotations to billing seamlessly:

Document Flow

Quotation

Sales Order

Delivery Note

Invoice

Payment

1 Create Quotation

  1. Selling > Quotation > New Quotation
  2. Select customer/lead, add service items, terms, submit & email

2 Create Sales Order

  1. Open Quotation > Create > Sales Order
  2. Verify details, set delivery date, submit

Scheduling

Use delivery date to plan resource allocation.

3 Delivery Note

  1. From Sales Order: Create > Delivery Note
  2. Mark services delivered, attach completion docs, submit

Note

Use Delivery Notes for service completion records.

4 Sales Invoice

  1. Create from Sales Order/Delivery Note
  2. Verify amounts, set posting date, submit & send

5 Payment Entry

  1. Accounting > Payment Entry > New
  2. Select Receive, choose customer, link invoice, submit

Upfront Payments

  1. Create Sales Order
  2. Payment Entry > Receive advance, link to SO
  3. Invoice adjusts for advance automatically

Milestone Billing

  1. Create Project > define tasks & milestones
  2. On milestone completion, create partial invoice linked to SO

Recurring Services

  1. Accounting > Subscription > New Plan
  2. Link customer, set frequency, system auto-generates invoices

Purchase Management

Manage procurement of goods and services:

Purchase Flow

Material Request

RFQ

Purchase Order

Receipt

Invoice

1 Supplier Setup

  1. Buying > Supplier > New
  2. Enter name, group, payment terms, taxes

2 Purchase Order

  1. Buying > Purchase Order > New
  2. Add items/services, set delivery date, submit

3 Purchase Receipt

  1. From PO: Create > Purchase Receipt
  2. Confirm services received, submit

Tip

Use receipts for quality tracking.

4 Purchase Invoice

  1. Buying > Purchase Invoice > New
  2. Link to PO/Receipt, verify, submit

5 Payment Entry

  1. Accounting > Payment Entry > New
  2. Select Pay, link supplier invoices, submit
Recurring Purchases
  1. Accounting > Subscription: create plan for vendor services
  2. System auto-generates purchase invoices on schedule

Accounting & Tax Setup

1 Chart of Accounts

  1. Accounting > Chart of Accounts
  2. Customize income, expense, subcontractor accounts

2 Tax Templates

  1. Accounting > Taxes > Sales Taxes and Charges Template
  2. Create templates for local, zero-rated, exempt, special rates
  3. Repeat for Purchase Taxes

Note

Consult your tax advisor for jurisdiction rules.

3 Fiscal Year & Periods

  1. Accounting > Setup > Fiscal Year
  2. Define periods for reporting

4 Payment Terms

  1. Accounting > Setup > Payment Term
  2. Create terms: Net 30, 50/50, Milestone, etc.

5 Financial Reporting

  1. Review default P&L, Balance Sheet, Cash Flow
  2. Build custom: Service profitability, client analysis

Tax Compliance

Ensure VAT/GST, withholding, and service-specific rules are set up correctly.

Multi-Currency
  1. Setup > Currency: add needed currencies
  2. Accounting > Currency Exchange: define rates or auto-update
  3. Enable multi-currency in Accounts Settings, setup gain/loss accounts

Service Item Configuration

1 Create Service Items

  1. Stock > Item > New Item
  2. Set group, check “Is Service Item,” uncheck “Maintain Stock”
  3. Define rate and tax in Selling section

2 Pricing

  1. Stock > Price List > New Price List
  2. Build lists: Standard, Volume Discount, Special, Promotional

3 Bundles

  1. New Item > set as Service Bundle
  2. After save, go to Product Bundle doctype to add components

Example

“Business Registration Package” with prep, notarization, filing.

4 Templates & Variants

  1. New Item > check “Has Variants”
  2. Define attributes like turnaround time or service level

5 Custom Fields

  1. Customization > Custom Field > New
  2. Apply to Item: Turnaround Time, Jurisdiction, Service Level, etc.

Legalization Examples

  • Document Authentication
  • Apostille
  • Notarization
  • Embassy Legalization
  • Translation

Consulting Examples

  • Strategic Consulting
  • Process Optimization
  • Market Research
  • Technology Advisory
  • Workshops

Other Services

  • Legal Services
  • Accounting Services
  • Design Services
  • Marketing Services
  • IT Services

Document Flow Diagrams

Key flows to visualize your end-to-end processes.

Complete Business Cycle

Lead → Opportunity → Quotation → Sales Order → Delivery Note → Invoice → Payment
Material Request → RFQ → Purchase Order → Receipt → Purchase Invoice → Payment

Service Sales Workflow

  1. Lead/Opportunity
  2. Quotation
  3. Sales Order
  4. Project (optional)
  5. Delivery Note (optional)
  6. Invoice
  7. Payment

Purchase Workflow

  1. Material Request
  2. RFQ
  3. Supplier Quotation
  4. Purchase Order
  5. Purchase Receipt
  6. Purchase Invoice
  7. Payment

Project-Based Delivery

  1. Sales Order
  2. Project
  3. Tasks
  4. Timesheet
  5. Invoice (milestone/timesheet)

Subscription Workflow

  1. Subscription Plan
  2. Subscription
  3. Automated Invoice
  4. Automated Payment

Best Practices

Tips to get the most out of ERPNext for your service business.

Setup Best Practices

  • Define clear service catalog items
  • Standardize your SOPs for each service
  • Lock down user roles
  • Configure notifications for key events
  • Customize print formats to match your brand

Daily Operations

  • Log all client interactions in CRM
  • Update service delivery status promptly
  • Follow document flow rigorously
  • Schedule regular backups
  • Monitor dashboard metrics daily

Financial Management

  • Reconcile bank statements weekly/monthly
  • Invoice upon completion
  • Automate payment reminders
  • Categorize expenses accurately
  • Review reports monthly

System Maintenance

  • Keep ERPNext up to date
  • Train users regularly
  • Document workflows
  • Clean up unused data
  • Audit permissions periodically

Pitfalls to Avoid

  • Skipping document steps
  • Vague service descriptions
  • Delayed data entry
  • Insufficient training
  • Overlooking custom needs
Implementation Timeline
  1. Weeks 1–2: Install, company setup, roles
  2. Weeks 3–4: Master data (items, customers, taxes)
  3. Weeks 5–6: Sales & Purchasing processes
  4. Weeks 7–8: Training, data migration, go-live
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