Concepts and Terms

Before you start implementation, lets get familiar with the terminology that is used and some basic concepts in ERPNext.

Basic Concepts


This represents the Company records for which ERPNext is setup. With this same setup, you can create multiple Company records, each representing a different legal entity. The accounting for each Company will be different, but they will share the Customer, Supplier and Item records.

Setup > Company


Represents a customer. A Customer can be an individual or an organization. You can create multiple Contacts and Addresses for each Customer.

Selling > Customer


Represents a supplier of goods or services. Your telephone company is a Supplier, so is your raw materials Supplier. Again, a Supplier can be an individual or an organization and has multiple Contacts and Addresses.

Buying > Supplier


A Product, sub-product or Service that is either bought, sold or manufactured and is uniquely identified.

Stock > Item


An Account is a heading under which financial and business transactions are carried on. Examples of accounts are "Debtors", "Creditors", "VAT Paya