Control of every operation
Purchasing, production, sales and stock handled end to end, from the first order to the last delivery.
ERPNext solutions for factories
Manufacturing ERP in Saudi Arabia
When production, stock and accounts each run in their own program, the factory gets managed in pieces. IBAN implements ERPNext so production, materials, costs and payroll work from the same records.
Better production planning, less waste
Watch production lines and raw material use closely, so waste and idle machines show up early.
Reports you can act on
Live reports show how the factory is performing while there is still time to do something about it.
Every department connected
Finance works from the same transactions as operations, so the two teams stop reconciling each other’s figures.
Practical solutions for a growing business 
How ERPNext helps Saudi factories
ERPNext lets Saudi factories manage materials, machines, people and money from the same records, in software their teams can learn quickly.
Want to see ERPNext set up for a factory like yours?
Book a free consultation, and we will show you a demo built around your factory’s needs.
Book a free consultation Common challenges
The challenges of running a factory today
These are the problems factory owners bring to us most often. Nearly all of them start with each department keeping its own records.
Separate programs, no single view
Accounting in one program, inventory in a spreadsheet, production in a notebook. At the monthly review, the three sets of numbers never agree.
Production cost that is only an estimate
Unless materials, machine time, energy and scrap are booked to the work order, your unit cost is a guess.
Hours lost to manual data entry
Paper shift reports typed up the next day cost hours and let errors into your figures.
Complex government integrations
ZATCA e-invoicing calls for a proper integration, and VAT and zakat need figures you can defend. Temporary workarounds tend to break when the requirements are updated.
Weak control over stock levels
If you are unsure how much raw material is on hand, either the line stops or the store fills up with materials you won’t need for months.
Payroll and end-of-service errors
Working out salaries and end-of-service benefits under Saudi rules by hand invites mistakes and disputes.
Key features
ERP for factories: on the shop floor
What the system does on the production line, in the warehouse and in finance.
Production management
- Work orders followed operation by operation through job cards
- Actual cost per order: materials plus workstation time, with electricity built into the hour rate
- Scrap and process loss recorded against each order
- Operations scheduled on workstations with capacity planning, and job cards assigned to operators
Inventory management
- Raw materials consumed and finished goods received in the same stock entry
- Reorder levels set per warehouse for each raw material
- A warehouse for each store and production area in the factory
- Reports on rejected and slow-moving stock
Accounting & tax
- Accounts that update from production and sales
- Profit and Loss, Balance Sheet and Trial Balance whenever you need them
- ZATCA e-invoicing through a compliance app added to ERPNext
- Phase 1 and ZATCA Phase 2 (integration phase): clearance, reporting and the cryptographic stamp
- Ledger figures ready for your VAT return and zakat calculation
HR & Payroll
- Payroll, leave and end-of-service benefits in Frappe HR, the HR app for ERPNext
- End-of-service benefit rules matched to your employment contracts
- Attendance and shifts from employee check-ins
- Employee self-service for leave requests and expense claims
Asset management
- Machines recorded as assets, with their location and condition
- Preventive maintenance tasks scheduled for each machine
- Breakdowns and repair costs logged with Asset Repair
Sales & purchasing
- Purchase and sales orders followed through to delivery and payment
- Supplier and customer records with their full history
- Orders from point of sale (POS), or from outside channels through integration
- BOM cost to check each selling price against
Reports & analytics
- Reports for every department that you can filter and export
- Unit cost, financial performance, production and sales reports
- Dashboards for senior management
ERPNext with IBAN
All your factory data in one system
Implemented by IBAN as your enterprise resource planning (ERP) system, ERPNext records each day’s production, stock, purchasing and sales as it happens. Management works from today’s figures instead of last month’s.
- The full manufacturing cycle
Sales order, work order, job cards on the floor, then delivery. Each document is created from the one before.
- Stock that follows production
Stock moves with every production entry and sale, and reorder levels raise a Material Request when a raw material runs low.
- Production linked to purchasing
A shortage becomes a Material Request, and the buyer turns it into a Purchase Order without re-entering the items.
- Accounting and tax
Production and sales post straight to the accounts, and VAT is worked out on every invoice.
- Reports and dashboards for management
Unit cost, gross profit, production and sales on dashboards for senior management.
ERPNext
Factory dashboard Live view
Production orders 48 ▲ +12%
Material availability 92% ▲ +18%
Purchase requests 31 ▲ +9%
Waste rate 1.2% ▲ -3.8%
Production efficiency
JanFebMarAprMayJun
Key items
1 The full manufacturing cycle 48
2 Stock that follows production 92%
3 Production linked to purchasing 31
4 Accounting and tax 1.2%
Status breakdown
- The full manufacturing cycle
- Stock that follows production
- Production linked to purchasing
- Accounting and tax
Worked example
How ERPNext cuts waste on the production line
An illustrative juice bottling plant: one order followed from the sale to delivery and the invoice.
- 01
The order comes in
A customer orders 10,000 bottles of mango juice, and sales records a Sales Order.
- 02
A work order is raised
The planner creates a Work Order from the Sales Order, and the BOM lists what it needs: 10,000 empty bottles, 5,000 liters of mango juice, 10,000 caps and labels.
- 03
Stock check
Planning against stock shows only 3,000 bottles on hand, and a Material Request is raised for the shortfall.
- 04
Buying the missing materials
Purchasing turns the Material Request into a Purchase Order for the approved supplier.
- 05
Receiving materials and starting production
The bottles arrive on a Purchase Receipt, the store transfers the materials to the floor, and the work order starts.
- 06
Tracking production
Job cards follow each operation (mixing, filling, capping and labeling) at its workstation and record time, good output and scrap.
- 07
Performance and waste reports
Reports compare planned and actual quantities and costs, show the scrap, and give the exact consumption of each material.
- 08
Stock updated
The finished bottles go into stock, and the raw materials used come out in the same entry.
- 09
Delivery and invoicing
The Delivery Note and Sales Invoice are created from the Sales Order, and every document links back to it.
The results
What changed before and after ERPNext?
The example plant above, before and after ERPNext.
| Indicator | Before ERPNext | After ERPNext |
|---|---|---|
| Waste rate | Not measured | Measured per work order |
| Production preparation time | Manual and imprecise | Planned in the system |
| Cost of excess materials | Not tracked | Visible on each order |
| Raw material control | Weak | Tracked in real time |
| Delivery and invoicing | Delayed | Created straight from the order |
Once the whole cycle runs in ERPNext, from sales order to delivery, waste, time and cost become measurable. That is where the savings start.
How we help
How we help you as a factory owner
We don’t hand over a system and walk away. After go-live we keep working with you on what matters in a factory: waste, time on the line, and profit you can see in the accounts.
We start with analysis
- A full review of how your factory works and what it needs
- The system built around your factory structure
We build and train
- Modules and integrations set up for each production line
- Training so your team uses the system the right way
We stay after go-live
- Ongoing technical support and operational advice
- Help reading the production and cost figures
Related modules
ERPNext modules for factories
FAQ
From sales order to finished product
Is ERPNext really suitable for factories?
Yes. Production is linked to raw materials, stock, purchasing, accounting and HR, whether you run one small plant or several factories.
How does the system calculate actual production cost?
Each work order collects the materials consumed, operating time at workstation hour rates (which can include electricity) and any scrap. You can then compare planned and actual cost and see how much of each material went in.
Does it support ZATCA e-invoicing?
Yes, through a ZATCA compliance app added to ERPNext. It covers Phase 1 and Phase 2 (integration phase), including clearance, reporting and the cryptographic stamp.
Does it handle payroll and end-of-service benefits under Saudi rules?
Yes. Payroll runs in Frappe HR, the HR app for ERPNext. It covers salaries, leave, attendance and end-of-service benefits, and we define the benefit rules to match your contracts and company policy.
Can the system be customized to how our factory works?
Yes. We shape the system around your factory structure and production lines, with permissions and reports for each department.
How do I get started with IBAN?
We start with a review of how your factory works. Then we set up the system, train your team and stay on after go-live for support and advice.
Contact us
Tell us about your project.
Pick the service you need, leave your details, and we will get back to you shortly.
ERPNext industries
Explore other industries
We implement ERPNext for other industries across Saudi Arabia too.