Accounts Module:

Create multiple companies, where the child company’s chart of accounts will be
created based on the parent company

Procedure:
Step1:

Data Import Template

Table: Account

Notes:
Please do not change the template headings.
First data column must be blank.
If you are uploading new records, leave the "name" (ID) column blank.
If you are uploading new records, "Naming Series" becomes mandatory, if
present.
Only mandatory fields are necessary for new records. You can delete non-mandatory columns if you wish.
For updating, you can update only selective columns.
You can only upload upto 5000 records in one go. (may be less in some cases)

DocType: Account
Column Labels: ID Account Name
Column Name: name account_name
Mandatory: Yes Yes
Type: Data Data
Info:
Start entering data below this line
"Application of Funds (Assets) - ERIS" Application of Funds (Assets)
"Current Assets - ERIS" Current Assets
"Accounts Receivable - ERIS" Accounts Receivable
"Debtors - ERIS" Debtors
"Bank Accounts - ERIS" Bank Accounts
"Bank Account - ERIS" Bank Account
"Cash In Hand - ERIS" Cash In Hand
"Cash - ERIS" Cash
"Loans and Advances (Assets) - ERIS" Loans and Advances (Assets)
"Securities and Deposits - ERIS" Securities and Deposits
"Earnest Money - ERIS" Earnest Money
"Stock Assets - ERIS" Stock Assets
"Stock In Hand - ERIS" Stock In Hand
"Tax Assets - ERIS" Tax Assets
"Fixed Assets - ERIS" Fixed Assets
"Accumulated Depreciations - ERIS" Accumulated Depreciations
"Buildings - ERIS" Buildings
"Capital Equipments - ERIS" Capital Equipments
"Electronic Equipments - ERIS" Electronic Equipments
"Furnitures and Fixtures - ERIS" Furnitures and Fixtures
"Office Equipments - ERIS" Office Equipments
"Plants and Machineries - ERIS" Plants and Machineries
"Investments - ERIS" Investments
"Temporary Accounts - ERIS" Temporary Accounts
"Temporary Opening - ERIS" Temporary Opening
"Expenses - ERIS" Expenses
"Direct Expenses - ERIS" Direct Expenses
"Stock Expenses - ERIS" Stock Expenses
"Cost of Goods Sold - ERIS" Cost of Goods Sold
"Expenses Included In Valuation -
ERIS" Expenses Included In Valuation
"Stock Adjustment - ERIS" Stock Adjustment
"Indirect Expenses - ERIS" Indirect Expenses
"Administrative Expenses - ERIS" Administrative Expenses
"Commission on Sales - ERIS" Commission on Sales
"Depreciation - ERIS" Depreciation
"Entertainment Expenses - ERIS" Entertainment Expenses
"Exchange Gain/Loss - ERIS" Exchange Gain/Loss
"Freight and Forwarding Charges -
ERIS" Freight and Forwarding Charges
"Gain/Loss on Asset Disposal - ERIS" Gain/Loss on Asset Disposal
"Impairment - ERIS" Impairment
"Legal Expenses - ERIS" Legal Expenses
"Marketing Expenses - ERIS" Marketing Expenses
"Miscellaneous Expenses - ERIS" Miscellaneous Expenses
"Office Maintenance Expenses - ERIS" Office Maintenance Expenses
"Office Rent - ERIS" Office Rent
"Postal Expenses - ERIS" Postal Expenses
"Print and Stationery - ERIS" Print and Stationery
"Rounded Off - ERIS" Rounded Off
"Salary - ERIS" Salary
"Sales Expenses - ERIS" Sales Expenses
"Telephone Expenses - ERIS" Telephone Expenses
"Travel Expenses - ERIS" Travel Expenses
"Utility Expenses - ERIS" Utility Expenses
"Write Off - ERIS" Write Off
"Income - ERIS" Income
"Direct Income - ERIS" Direct Income
"Sales - ERIS" Sales
"Service - ERIS" Service
"Indirect Income - ERIS" Indirect Income
"Source of Funds (Liabilities) - ERIS" Source of Funds (Liabilities)
"Capital Account - ERIS" Capital Account
"Reserves and Surplus - ERIS" Reserves and Surplus
"Revaluation Surplus - ERIS" Revaluation Surplus
"Shareholders Funds - ERIS" Shareholders Funds
"Current Liabilities - ERIS" Current Liabilities
"Accounts Payable - ERIS" Accounts Payable
"Creditors - ERIS" Creditors
"Payroll Payable - ERIS" Payroll Payable
"Duties and Taxes - ERIS" Duties and Taxes
"TDS - ERIS" TDS
"Loans (Liabilities) - ERIS" Loans (Liabilities)
"Bank Overdraft Account - ERIS" Bank Overdraft Account
"Secured Loans - ERIS" Secured Loans
"Unsecured Loans - ERIS" Unsecured Loans
"Stock Liabilities - ERIS" Stock Liabilities
"Stock Received But Not Billed - ERIS" Stock Received But Not Billed
• Create a Payment Entry based on Payment Terms
• Create an internal customer and Supplier, and create an internal Sales Invoice and company
invoice between the two companies

• Update Frozen Date on Accounting transactions based on transactions (Accounting periodic)

 • Create an invoice and payment using the foreign currency account for receivable and receipt
of payment

Selling Module:

Assessment Question: Create a Drop Shipping Purchase Order from Sales Order

Procedure:
Step1: Create a Sales Order
• Navigated to: Selling → Sales Order → New
• Entered the details of the customer, delivery date and items required
• Enabled “Delivered by Supplier” for each item (to trigger Drop Shipping).
• Shipping Address: Selected the customer’s address.
• Saved and Submitted the Sales Order.
 Screenshot1: Sales Order showing “Delivered by Supplier” checkbox enabled before
submission

Screenshot 2: Submitted Sales Order with item and delivery details. (Status= To deliver
and Bill)

Step2: Created Purchase Order from Sales Order

• Opened the submitted Sales Order
• Clicked: Create → Purchase Order
• Items were fetched from Sales Order.
• Delivery Address was auto-filled with the Customer’s Address (since drop ship is
enabled).
 • Drop Ship checkbox was automatically enabled.
• Filled remaining details of supplier and delivery date
• Saved and Submitted the Purchase Order.

Screenshot 3: Draft Purchase Order showing customer’s address as delivery location

Screenshot 4: Submitted Purchase Order with Drop Ship enabled and linked Sales
Order reference

Result:
Successfully created a Drop Shipping Purchase Order directly from a Sales Order in ERPNext.
The flow ensured the goods will be shipped directly from the Supplier to the Customer,
bypassing internal stock.
The Sales Order and Purchase Order are properly linked with Drop Ship enabled, and the
delivery address reflects the Customer.

Assessment Question: Create Sales Order with Two or Three Sales Persons, and
Values Split Among Them

Procedure:
Step1: Created Sales Persons
• Navigated to: Selling → Sales Person → New
• For each sales person:
• Entered Name
• Assigned Parent Node as “Sales Team”
• Clicked Save
 Screenshot 1: Sales Person master form filled and saved

Step2: Created a Sales Order

• Navigated to: Selling → Sales Order → New
• Filled in basic details:
Customer: Abhi Kirani Store
Delivery Date: 26-07-2025
Item Code: AAAHA-1: Ginger Garlic Paste 400g
Quantity: 5
Rate: ₹100
Total Amount: ₹500
• Saved the sales order

Screenshot 2: Sales Order showing item details and total value of ₹500
 Step3: Assigned Multiple Sales Persons and Split Values

Submitted the sales order.

Screenshot 3: Sales Order showing sales team details and incentives allocated .

Result:
Successfully created a Sales Order with three Sales Persons, each assigned a specific contribution
percentage. ERPNext automatically calculated the net contribution and optional incentive values
based on the total order value of ₹500. The final Sales Order accurately reflects sales effort split
among Mahesha B, Anilkumar C, and Bhaskar Hegde.

Assessment Question: Apply credit limit on Customers and restrict Sales Order
creation

Procedure:

Step1: Set Credit Limit on Customer

• Go to Selling > Customer
• Scroll to Credit Limit and Terms
• Set: Credit Limit (e.g., ₹10,000.00)
• Save the Customer
Screenshot1: Customer Credit Limit Section

Step2: Enable Credit Limit Enforcement

• Go to Selling > Settings > Accounts Settings

• Find section "Period Closing Settings"

• Add the Credit Controller and Role Allowed to Set Frozen Accounts and Edit Frozen Entries
fields (Account Manager)
• Save

Screenshot2: Selling Settings with Credit Limit

Step3: Try Creating a Sales Order Beyond Limit

• Go to Selling > Sales Order > New
• Choose the same Customer
• Enter order amount exceeding credit limit (e.g., ₹15,000.00)
• Try to Save or Submit

Screenshot3: Error message on Sales Order submission

Result
Credit limit was successfully applied to the customer. The system restricted Sales Order
submission when the order value exceeded ₹10,000, confirming that the credit control
settings are working as expected.

Assessment Question: Create a Service Order. Create a Maintenance Schedule and

Maintenance Visit against it.

Procedure:

Step1: Used “Issue” as a Substitute for Service Order

• Module: Support > Issue > New
• Subject: AMC for Smart Boards – Main Campus
• Customer: Pragathi Dev Internal
• Priority: Medium
• Issue Type: Maintenance
• Description: Quarterly AMC for 20 Smart Boards
• Status: Submitted

Screenshot 1: Submitted Issue (Service Order substitute)

Step2: Created Maintenance Schedule

• Module: Maintenance Schedule > New

• Customer: Pragathi Dev Internal
• Item: Smart Interactive Board – SB-500
• Start/End Date: 01-08-2025 to 31-07-2026
• Periodicity: Quarterly
• No. of Visits: 4

Screenshot 2: Submitted Maintenance Schedule

Step3: Created Maintenance Visit
• From Maintenance Schedule: Create > Maintenance Visit
• Visit Date: 01-10-2025
• Employee: Alex
• Status: Fully Completed
• Remarks: Cleaned screens, updated firmware
Screenshot 4: Submitted Maintenance Visit

Result:
Simulated Service Order using Issue, and created corresponding Maintenance Schedule and
Visit under the AMC process.

Buying Module:
Assessment Question: Create a Purchase Order showing budget validation exceed that
permitted limit

Procedure:
Step1: Set Up Budget Control

□ Navigated to: Accounts > Budget > New

□ Created a new Budget with the following:
• Company: Pragathi Dev
• Fiscal Year: 2025–2026
• Cost Center: Main - PD
• Budget Accounts:
• Print and Stationery - PD: ₹50,000
• Administrative Expenses - PD: ₹1,50,000 Saved and submitted the budget.

Screenshot 1: Budget document showing company, cost center, and budgeted

accounts

Step 2: Create Material Request

□ Navigated to: Buying > Material Request > New

• Created a new Material Request with the following details:
• Request Type: Purchase
• Company: Pragathi Dev
• Cost Center: Main - PD
 • Target Warehouse: Stores - PD
• Added Items
• Saved and submitted the Material Request.

Screenshot 2: Submitted Material Request showing item, quantity, rate, and cost
center

Step3: Create Purchase Order from Material Request

• From the submitted Material Request:

Clicked on Create > Purchase Order
• Filled in the following:
• Supplier: EduSupplies Pvt Ltd
• Company: Pragathi Dev
• Cost Center: Main - PD
• Items auto-fetched from Material Request
• Saved the Purchase Order
Screenshot 3: Draft Purchase Order showing item total exceeding ₹50,000 budget limit

Step4: Observe Budget Validation Message

Upon submitting, system displayed validation error:

Screenshot 4: Error message showing budget validation triggered on PO submit

Result:
The system prevented Purchase Order submission as it exceeded the allowed budget,
confirming that Budget Validation control is working correctly.
Assessment Question: Create a Purchase Receipt based on Put-away Rule

Procedure:
Step1: Create an Item

Item Code: LAB-APRON-001

Item Name: Lab Apron
Item Group: Lab Supplies
UOM: Nos
Stock UOM: Nos

Screenshot1: Item Master for LAB-APRON-001

Step2: Create a Put-away Rule

Warehouse: Lab Rack - PD

Item: LAB-APRON-001
Priority: 1
Capacity: 100
Company: Pragathi Dev
UOM: Nos
Conversion Factor: 1
Screenshot 2: Put-away Rule showing item, warehouse, capacity, and priority

Step3: Create a Purchase Order

Supplier: SchoolMart Stationery

Required By: 25 -07-2025
Warehouse: Lab Rack - PD
Item: LAB-APRON-001

Screenshot 3: Purchase Order with item and tax charges (Status: To Bill)
Step4: Submit Purchase Receipt

Purchase Order Linked: Yes

Warehouse: Lab Rack - PD (auto-selected from put-away rule)
Qty Received: [same as PO]
UOM: Nos

Screenshot 5: Purchase Receipt auto-filled with warehouse from Put-away Rule

Screenshot 6: Purchase Receipt status: Submitted and To Bill

Screenshot 7: Stock Ledger showing item LAB-APRON-001 moved to Lab Rack - PD

Result:
Successfully created and submitted a Purchase Receipt using the Put-away Rule in ERPNext.
The warehouse was auto-assigned based on the defined rule. The stock update was verified
through the Stock Ledger, confirming the item was added to the correct warehouse.
HR Module:

Assessment Question: Set Employee hierarchy and show the organization chart at 4
levels.

Procedure:
Steps Followed

1. Identified existing employees with a proper reporting hierarchy in the current database.

2. Verified reporting relationships using the "Reports To" field in the Employee Master:

o Guru Prasad (CEO) – Top Level

o Bhaskar Hegde (State Head / MBM) – Reports to Guru Prasad

o Kolakari Deva Kumar (MBM) – Reports to Bhaskar Hegde

o Anandu H (ASE) – Reports to Kolakari Deva Kumar

3. Ensured the hierarchy covers 4 levels.

4. Opened the Organization Chart under Human Resources → Employee → Organization Chart
to confirm the hierarchy.

5. Captured screenshots to clearly show the hierarchy and organization chart.

Screenshots

• Screenshot 1: Employee Master showing the "Reports To" field filled for hierarchy.

• Screenshot 2: Organization Chart displaying 4 levels clearly in tabular view.

 • Screenshot 3: Organization Connection Chart.

Result

Successfully created and verified a 4-level employee hierarchy in ERPNext using existing employees.
The organization chart clearly shows the structure:

CEO → State Head → MBM → ASE

Assessment Question: Bulk allocate leaves to Employees using the Leave Period

Procedure:
Steps Followed

1. Navigated to Human Resources → Leave Allocation Tool.

2. Selected the required Leave Type (Casual).

3. Selected the Leave Period (2025-2026).

4. Selected employees from the list.

5. Entered the number of leaves to allocate.

6. Clicked Allocate Leaves.

7. Checked the allocations under HR → Leave Allocation.

Screenshots

• Screenshot 1: Leave Period created

• Screenshot 2: Leave Type created

• Screenshot 3: Bulk Leave Allocation

 .Screenshot 4: Leave Allocation List

Result

Successfully allocated leaves in bulk for selected employees as per the Leave Period.
All allocations show "Submitted" status

Assessment Question: Make an Employee advance entry, and allocate it against an

expense claim.

Procedure:
Steps Followed

1. Create Employee Advance

• Navigated to HR > Employee Advance > New

• Filled in the details:

o Employee: HR-EMP-00010 - Cherishma S

o Posting Date: 25-07-2025

o Advance Amount: ₹4,000.00

 o Purpose: Travel To Mumbai

o Advance Account: Advance to Employees - AAH

o Mode of Payment: Bank Draft

• Saved the record.

Screenshot: Employee Advance

2. Create Payment Entry to Pay the Advance

• Navigated to Accounting > Payment Entry > New

• Filled in the fields:

o Payment Type: Pay

o Posting Date: 25-07-2025

o Mode of Payment: Cash

o Party Type: Employee

o Party: HR-EMP-00010 - Cherishma S

o Account Paid From: Cash - AAH

o Account Paid To: Advance to Employees - AAH - AAH

o Amount: ₹4,000.00

o Remarks: Advance paid to Cherishma for Travel

• Saved and submitted the record.

Screenshot: Payment Entry

 3. Create an Expense Claim to Use the Advance

• Navigated to HR > Expense Claim > New

• Filled in the fields:

o Employee: HR-EMP-00010 - Cherishma S

o Posting Date: 25-07-2025

o Expense Approver: shanthi.s@[Link]

• Added an Expense Claim Row:

o Expense Date: 25-07-2025

o Type: Travel

o Description: For business travel expenses

o Amount: ₹4,000.00

o Sanctioned Amount: ₹4,000.00

o Payable Account: Creditors - AAH

o Cost Center: Main - AAH

• In the Advance Payments section:

o Clicked Add Row

o Selected the earlier Employee Advance of ₹4,000

o Set Allocated Amount: ₹4,000.00

• Saved and submitted the record.

 Screenshot: Expense Claim with Advance Allocated (Status: Paid)

Screenshot: Claimed

Result

• Advance successfully issued to employee.

• Advance used against Expense Claim.

• All records properly linked and submitted.

Assessment Question: Approve Expense Claim for an Employee who is reporting to
me.

Procedure:
Steps Followed

1. Logged in as Ravi K.

2. Created a new Expense Claim for personal expenses.

3. Filled in the required details:

o Employee: Ravi K

o Expense Date, Type, Description, Amount

o Mode of Payment, Payable Account, Cost Center

4. Saved the Expense Claim. Status was set to Draft.

5. Logged out from Ravi K’s account.

6. Logged in as Bhaskar Hegde (Ravi K’s Reporting Manager).

7. Opened the Expense Claim submitted by Ravi K (Status: Draft).

8. Reviewed the claim and selected Approval Status: Approved.

9. Saved and submitted the Expense Claim.

10. Final Status: Approved and Document is Submitted.

• Screenshot 1: Expense Claim created by Ravi K (Status: Draft)

• Screenshot 2: Final Submitted Expense Claim showing Status: Approved

Result

Successfully created and approved an expense claim.

Ravi K created the claim in Draft status. Bhaskar Hegde, as the reporting manager, approved and
submitted the claim.
Final status: Approved and Submitted.

Assessment Question: Process Employee onboarding from Job Application > Job Offer.

Procedure:
Steps Followed

1. Created a Job Opening under Human Resources → Job Opening.

2. Created a Job Applicant with status set to Open and filled in required details such as Name,
Email, and Vacancy.

3. Updated the Job Applicant Status to Replied after communication, and then to Accepted
after selection.

4. Selected Interview Type: Face-to-Face during the interview process.

5. From the Job Applicant (Status: Accepted), clicked Create → Job Offer.

6. Filled necessary details in Job Offer:

o Job Title: Sales Executive (or relevant title)

o Salary Structure: As per company policy

 o Date of Joining and Offer Expiry Date

7. Submitted the Job Offer (Status: Submitted).

8. After acceptance, created a new Employee from the Job Offer.

9. Filled employee details such as Employee ID, Department, Designation, Reporting Manager.

10. Saved and confirmed the new Employee record.

Screenshots

• Screenshot 1: Job Applicant created (Status: Open → Replied → Accepted)

• Screenshot 2: Job Offer created from Job Applicant
 • Screenshot 3: Employee created from Job Offer

Result

Successfully processed employee onboarding from Job Applicant to Job Offer and Employee
creation.
The process included creating a Job Opening, managing the applicant status through selection,
issuing a Job Offer, and finally onboarding the employee into ERPNext.
Manufacturing module:

Assessment Question: Create a multi-level BOM with using this use-case

Procedure:

Step 1: Create Items for All Components

• Navigate to: Stock > Item > New
• Create the following items:
1. SWK-001 – Smart Writing Kit (Finished Good)
2. SB-001 – Smart Board (Sub-Assembly)
3. MB-001 – Motherboard (Raw Material)
4. LP-001 – LED Panel (Raw Material)
5. PF-001 – Plastic Frame (Raw Material)
6. DP-001 – Digital Pen (Raw Material)
7. UM-001 – User Manual (Raw Material)

Screenshot1: Item Master for SWK-001, SB-001, and other components

Step 2: Create BOM for Smart Board (Child BOM)

• Navigate to: Manufacturing > Bill of Materials > New
• Details:
1. Item: SB-001 – Smart Board
2. Raw Materials:
3. MB-001 – Motherboard
4. LP-001 – LED Panel
 5. PF-001 – Plastic Frame
6. Quantity: 1
7. Rate Calculation: Automatic or manual as per material cost
8. Is Default: ✅ Checked

Screenshot2: BOM for SB-001 (Child BOM)

Step 3: Create BOM for Smart Writing Kit (Parent BOM)

• Navigate to: Manufacturing > Bill of Materials > New
• Details:

1. Item: SWK-001 – Smart Writing Kit

2. Materials:
3. SB-001 – Smart Board (this is the child BOM)
4. DP-001 – Digital Pen
5. UM-001 – User Manual
6. Quantity: 1
7. BOM for SB-001 will be automatically fetched
8. Is Default: ✅ Checked
Screenshot3: BOM for SWK-001 (Parent BOM with child BOM inside)

Step 4: Create Work Order for SWK-001

• Navigate to: Manufacturing > Work Order > New
• Details:
1. Production Item: SWK-001
2. BOM: Will be auto-fetched (Multi-level)
3. Qty to Manufacture: 1
4. Source Warehouse: Stores - PD
5. Target Warehouse: Finished Goods - PD
• Save & Submit

Screenshot4: Work Order showing multi-level BOM

Step 5: Stock Entry – Material Transfer for Manufacture
• After submitting the Work Order:
• Go to: Stock Entry > Material Transfer for Manufacture
• Linked to Work Order
• Raw materials for both parent and child BOM will be fetched
• Save & Submit

Screenshot5: Material Receipt

Screenshot6: Material Transfer Stock Entry

Step 6: Stock Entry – Manufacture

• Next Go to: Stock Entry > Manufacture
• Linked to Work Order
• Will consume raw materials and generate SWK-001 in the target warehouse
 • Save & Submit

Screenshot7: Manufacture Stock Entry (Final Product Created)

Screenshot8: Work Order completed

Result:
A successful multi-level BOM was created and used in a Work Order, with raw materials
automatically pulled from sub-assemblies to manufacture the final product Smart Writing Kit.
Assessment Question: BOM for motherboard as a sub-assembly.

Procedure:
Step 1: Create Item for "Motherboard"
• Navigated to Stock > Item > New

• Entered the following details:

o Item Code: Motherboard

o Item Name: Motherboard

o Item Group: Sub Assemblies

o Checked Maintain Stock

o Checked Include Item in Manufacturing

o Checked Is Subcontracted Item (if relevant)

• Saved the item.

Screenshot1: Motherboard item in group "Sub Assemblies"

Step 2: Create BOM for "Motherboard"

• Navigated to Manufacturing > Bill of Materials > New
• Selected:
Item: Motherboard
Quantity: 1
• Under Items, added raw materials such as:
1. IC Chips
2. Resistors
 3. Capacitors
4. PCB Base
• Saved and submitted the BOM.

Screenshot2: Raw materials listed under Motherboard BOM

Result
• BOM for "Motherboard" as a sub-assembly was successfully created
Assessment Question: BOM for final Laptop / Mobile / or any other item you are
comfortable with.

Procedure:
BOM FOR FINAL LAPTOP

Step 1: Create Finished Good Item – Laptop

• Navigated to Stock > Item > New

• Entered the following details:

o Item Code: LAPTOP-001

o Item Name: LAPTOP

o Item Group: Finished Goods

o Maintain Stock: ✔

o Include Item in Manufacturing: ✔

o Default Unit of Measure: Nos

• Saved the item.

Screenshot1: Finished Good Item – Laptop

Step 2: Create Raw Materials or Sub-Assemblies

• Created the following items:

o MOTHERBOARD – Sub-assembly (already created in earlier task)

o PCB-BASE
 o RESISTOR

o CAPACITOR

o IC-CHIP

• For each item:

o Item Group: Raw Material

o Maintain Stock: ✔

Screenshot2: Each item created as raw material or sub-assembly

Step 3: Create BOM for Final Product – Laptop

• Navigated to Manufacturing > Bill of Materials > New

• Entered the following details:

o Item: LAPTOP-001

o Quantity: 1

o With Operations: Optional

• Under Items, added:

o MOTHERBOARD (sub-assembly)

o CPU-INTEL

o RAM-8GB

o HDD-512GB

• Saved and submitted the BOM.

Screenshot3: Laptop final product BOM with all items, including motherboard sub-assembly

Final Result:
A multi-level BOM is now created for LAPTOP-001, where:

• MOTHERBOARD is treated as a sub-assembly and has its own BOM containing:

o PCB-BASE-001

o RESISTOR-10K

o CAPACITOR-220UF

o IC-CHIP-001

• LAPTOP includes the motherboard and other components like:

o CPU-INTEL, RAM-8GB, HDD-512GB as direct raw materials

Assessment Question: Create a Production Planning Cycle based on new order
received, and create Material Request form it.

Procedure:

Step 1: Create or Review Bill of Materials (BOM)

We first ensure that the item to be manufactured has a valid Bill of Materials.
• Item: LAPTOP-001
• BOM ID: BOM-LAPTOP-001-001
• Components include: Motherboard, RAM, Battery, Display, etc.

Screenshot 1: Submitted BOM for LAPTOP-001-001

Step 2: Create Sales Order

We received an internal order for 5 laptops.
• Customer: Pragathi Dev Internal
• Sales Order ID: SAL-ORD-2025-00003
• Item: LAPTOP-001
• Qty: 5
• Warehouse: Finished Goods - PD
• Status: To Deliver and Bill
Screenshot 2: Submitted Sales Order with item and quantity.

Step 3: Create Production Plan

We create a Production Plan by pulling the Sales Order.
• Production Plan ID: MFG-PP-2025-00001
• Item to Manufacture: LAPTOP-001
• BOM Used: BOM-LAPTOP-001-001
• Planned Qty: 5
• Warehouse: Finished Goods - PD
• Includes Sub-Assembly: MB-001
• Start Date: 26-07-2025

Screenshot 3: Draft Production Plan after pulling Sales Order

Screenshot 4: Submitted Production Plan

Step 4: Create Material Request from Production Plan

• From the submitted Production Plan, we create a Material Request.
• Enable checkboxes:
✅ Include Non Stock Items
✅ Include Subcontracted Items
✅ Ignore Existing Projected Quantity
• Click Get Raw Materials for Production
• Click Create > Material Request
• System fetches raw materials from BOM
• Submit the request.
Screenshot 5: Submitted Material Request showing raw materials and quantity

Result:
Successfully Completed the required Production Planning Cycle and Material Request
generation as per ERPNext certification standards.
Assessment Question: Run a Manufacturing cycle, with Capacity planning feature.

Procedure:

Step 1: Create a Bill of Materials (BOM)

• Navigated to: Manufacturing > Bill of Materials > New
• Selected Item: LAPTOP-001
• Added raw materials: Motherboard, RAM, Battery, Display, etc.
• Added Operation: Laptop Assembly
• Assigned Workstation: Assembly Table 1
• Set Operation Time: 60 minutes
• Saved and Submitted the BOM

Screenshot 3: BOM showing LAPTOP-001, raw materials, operation, and workstation details.

Step 2: Create Workstation and Operation

• Created Workstation: Assembly Table 1
Added hourly cost components (electricity, wages, etc.)
• Created Operation: Laptop Assembly
• Linked the above workstation and set default time as 60 minutes
• Saved both records
Screenshot 2: Workstation form with values filled.

Screenshot 3: Operation form with values filled.

Step 3: Enable Capacity Planning

• Navigated to: Manufacturing > Settings > Manufacturing Settings
• Enabled:
1. Capacity Planning Required
2. Plan Based on Workstation Capacity
3. Allow Overtime
4. Allow Production on Holidays
• Set default warehouses:
1. Work In Progress Warehouse: Work In Progress - PD
2. Finished Goods Warehouse: Finished Goods – PD
 • Saved settings

Screenshot 4: Manufacturing Settings showing enabled capacity planning.

Step 4: Create Production Plan

• Navigated to: Manufacturing > Production Plan > New
• Added item: LAPTOP-001, Quantity: 2
• Selected target warehouse: Finished Goods - PD
• Clicked:
Get BOM and Operations
Get Work Order
• Saved and Submitted the Production Plan

Screenshot 5: Submitted Production Plan showing items.

Step 5: Create Material Request from Production Plan
• From the submitted Production Plan, clicked Create > Material Request
• Target Warehouse: Stores - PD
• Submitted the Material Request

Screenshot 6: Material Request with items and quantities listed.

Step 6: Create and Submit Work Order

• Navigated to: Manufacturing > Work Order > New
• Item: LAPTOP-001
• BOM: BOM-LAPTOP-001-002
• Quantity: 1
• Source Warehouse: Stores - PD
• WIP Warehouse: Work In Progress - PD
• Target Warehouse: Finished Goods - PD
• Clicked Get Items from BOM
• Saved and Submitted the Work Order
Screenshot 7: Submitted Work Order showing items, BOM, and warehouse details.

Step 7: Perform Material Transfer for Manufacture

• From the submitted Work Order, clicked Create > Stock Entry > Material Transfer for
Manufacture
• Transferred materials from Stores - PD to Work In Progress - PD
• Submitted Stock Entry

Screenshot 8: Stock Entry for Material Transfer showing raw material movement.

Step 8: Start and Complete Job Card

• Opened auto-generated Job Card (e.g., PO-JOB00001)
• Clicked Start Job
• Added time log (60 minutes) and Completed Qty = 1
 • Clicked Complete Job
• Saved and Submitted the Job Card

Screenshot 9: Job Card showing operation completion and time log.

Step 9: Create Stock Entry for Manufacture

• From Work Order, clicked Create > Stock Entry > Manufacture
• Confirmed:
• Raw materials consumed from WIP
• Finished item stored in Finished Goods - PD
• Submitted the Stock Entry

Screenshot 10: Manufacture Stock Entry showing finished product creation.

Step 10: Work Order Completion
• Work Order status automatically updated to Completed
• Verified total quantity completed: 1
• Checked capacity usage and time log for workstation

Screenshot 11: Work Order with status = Completed.

Result:
• Successfully executed a full Manufacturing Cycle with Capacity Planning enabled
• Work Order was completed with proper tracking of:
• Raw material usage
• Operation time
• Workstation utilization
• ERPNext successfully planned based on available workstation capacity and operation
time
• The system tracked production status from BOM → Work Order → Job Card →
Finished Goods
• Manufacturing process completed and product stored in the Finished Goods
Warehouse
Payroll Module:

Assessment Question: Add salary component in the Salary Slip, which is not available
in the Salary Structure

Procedure:

Steps Followed

1. Opened Salary Slip from Human Resources → Salary Slip.

2. Selected the Salary Slip in Draft Status to modify.

3. Scrolled down to the Earnings / Deductions section.

4. Clicked Add Row under Earnings.

5. Selected a Salary Component which is not part of the Salary Structure (e.g., Special
Allowance or Internet Reimbursement).

6. Manually entered the Amount (e.g., ₹2,000 for Special Allowance).

7. Verified that the Gross Pay and Net Pay totals updated correctly.

8. Saved and submitted the Salary Slip with the newly added component.

Screenshots

• Screenshot 1: Salary Slip before adding the salary component (Draft Status)
• Screenshot 2: Salary Slip with the manually added salary component in Earnings

• Screenshot 3: Final Submitted Salary Slip showing the updated totals

Result

Successfully added a salary component manually to the Salary Slip, even though it was not included
in the Salary Structure.
All totals updated correctly and the Salary Slip was submitted.

Assessment Question: Reduce taxable income for the employee using Employee Tax
Exemption record

Procedure:

Steps Followed

1. Create Tax Exemption Category & Sub-Category

• Navigated to HR > Tax Exemption > Employee Tax Exemption Category

o Name: 80C

Screenshot:
 • Then went to HR > Tax Exemption > Employee Tax Exemption Sub Category

o Name: Life Insurance Premium

o Category: 80C

o Max Amount: ₹1,50,000

o Is Active: Yes

Screenshot: Sub Category form showing Name, Category = 80C, Max Amount = 150000, Is Active

2. Declare Tax Exemption for the Employee

• Navigated to Employee Tax Exemption Declaration

o Employee: e.g., HR-EMP-00010

o Payroll Period: payroll

 o Added Row:

▪ Category: 80C

▪ Sub Category: Life Insurance Premium

▪ Declared Amount: ₹1,50,000

Screenshot: Employee Tax Exemption Declaration

3. Submit Employee Tax Exemption Proof

• Navigated to Employee Tax Exemption Proof Submission

o Added Row:

▪ Sub Category: Life Insurance Premium

▪ Category: 80C

▪ Actual Amount: ₹1,50,000

▪ Type of Proof: Policy Document (or similar)

▪ House Rent Payment (optional): ₹0.00

Screenshot: Proof Submission

4. Check/Update Income Tax Slabs

• Navigated to Income > Tax Slab

o Ensured the following slabs are set:

▪ 0 – 2.5L: 0%

▪ 2.5L – 5L: 5%

▪ 5L – 10L: 10%

Screenshot: Tax Slab Table

5. Create or Update Salary Component: Income Tax

 • Navigated to Salary Component

o Name: Income Tax

o Abbr: IT

o Type: Deduction

o Checked: Is Income Tax Component

o Checked: Variable Based on Taxable Salary

o Added Account under Company

Screenshot: Salary Component

6. Assign Salary Structure

• Navigated to Salary Structure Assignment

o Assigned a structure that includes Income Tax deduction

7. Generate Salary Slip

• Navigated to Payroll Entry → Salary Slip

o Generated for the employee

You will now see:

• Earnings: Basic, HRA, Special Allowance

• Deductions: PF, PT, Income Tax (e.g., ₹177.78)

Screenshot: Salary Slip showing deduction

Final Output Confirmed

• Net Pay is calculated correctly after tax

• Income Tax is deducted and visible

• All exemption and salary rules are applied

Assessment Question: Create a payroll entry for two employees, having tax auto-
calculated.

Procedure:

Steps Followed

1. Opened Payroll Entry from Human Resources → Payroll → Payroll Entry.

2. Clicked New to create a fresh Payroll Entry.

3. Filled in the following details:

o Company: Aaahara

o Posting Date: 22-07-2025

o Payroll Frequency: Monthly

o Period: 01-07-2025 to 31-07-2025

4. Clicked Get Employees and selected two employees with assigned salary structures.

5. Clicked Create Salary Slips – system auto-generated slips with salary and tax components.

6. Clicked Submit Salary Slips – changing status from Draft to Submitted.

7. Clicked Make Bank Entry – system auto-generated the Journal Entry.

8. Verified the Journal Entry with:

o Debits: Salary Expense, HRA, Special Allowance

o Credits: Payroll Payable, Professional Tax, Provident Fund

 o Total: ₹1,00,000 Debit = ₹1,00,000 Credit (Balanced)

Screenshots

• Payroll Entry with two employees selected

• Salary Slips for both employees showing auto-calculated tax

 • Submitted Payroll Entry

Result

• The Payroll Entry was created successfully for two employees.

• Salary Slips were generated and included auto-calculated tax (e.g., Professional Tax / TDS) as
per the salary structure.

• The Bank Entry was also submitted.