IBAN, ERPNext partner in Saudi Arabia

Article · May 24, 2025

ERPNext modules explained for Saudi businesses

A central document linked to sales, purchasing, finance and reporting modules

ERPNext modules cover the main parts of a business, from finance and sales to stock, production, projects, and HR. They share the same business data, so every team works from the same records instead of keeping its own copy. Most companies should begin with the modules that run their daily sales, buying, stock, and accounts.

What are ERPNext modules

A module is a group of tools for one business area. Accounting serves the finance team, Selling serves the sales team, and Stock serves warehouse staff. Each team gets the tools it needs, but the data stays connected.

Take a normal sale. A salesperson records the order, the warehouse ships it, and finance sends the invoice from that same record. When the payment arrives, it closes the amount due. Staff don’t need to enter the same item, customer, or value several times.

This shared flow is the main benefit of ERPNext, and it reduces gaps between departments. Managers can follow an order from the first customer request all the way to payment. It’s also why we get uneasy when a company wants to start with accounting alone and keep stock in another tool.

Access can still be limited by role, since warehouse staff don’t need payroll access, for example. You can show each person only the areas needed for their job.

Which ERPNext modules cover each business area

The names below follow the official ERPNext module overview, grouped by the business questions they answer. HR and payroll now come through a separate app, which we explain later.

Business areaMain modulesWhat they help you manage
FinanceERPNext AccountingInvoices, payments, bank checks, budgets, tax, and financial reports
SalesSelling and customer salesCustomer requests, offers, orders, prices, and sales follow-up
Stock and buyingInventory management and purchasing managementWarehouses, stock levels, suppliers, buying, and received goods
ProductionERPNext ManufacturingMaterials, production plans, factory work, and outside production
Projects and servicesERPNext Projects, Assets, Quality, and SupportJobs, time, costs, fixed assets, checks, and customer service
RetailPoint of SaleCounter sales, branch shifts, payments, and daily closing
PeopleFrappe HR and payrollEmployees, leave, attendance, shifts, pay, and gratuity

You don’t need to launch every area at once. The right mix depends on how your company earns money and delivers work. A trading company needs a different first phase from a consulting firm or a factory.

How finance and sales work together

Finance receives the result of daily work

Accounting is the base for most rollouts, so we usually set it up early and take our time with it. We start with the account structure, taxes, branches, and cost centers. A cost center lets finance track income and spending for a branch or department. If these basics are wrong, sales and stock will post to the wrong accounts for months.

Other modules then feed the accounts. A submitted Sales Invoice records revenue and tax, and a Payment Entry records the money received. Finance can then review what customers owe, what the company owes, cash, profit, and spending against budget.

Saudi companies also need the right VAT setup. On version 15, the basic Saudi localization is a separate app. It holds the local VAT settings, the VAT return report, and the Phase 1 QR code. Up to version 14, these came with ERPNext itself.

ZATCA Phase 2 needs an added app

ZATCA Phase 2 is not part of ERPNext core. It runs through a compliance app added to ERPNext, which handles clearance, reporting, and the digital stamp. Standard B2B invoices must be cleared by ZATCA before they go to the buyer. Simplified B2C invoices are reported after the sale.

Our ERPNext ZATCA integration guide explains that setup in plain terms. We recommend choosing the compliance app before you test invoices, so the invoice process doesn’t change close to go-live.

Sales carries the customer request forward

The sales area tracks prospects, offers, prices, and orders. Once a customer agrees, the Sales Order tells the warehouse what to ship, and finance can create the invoice from the completed sale.

A small sales team may not need detailed pipeline tracking on day one and can add it later. However, prices, customer terms, tax rules, and order approval should be ready before launch.

How stock buying and production connect

Stock starts with a trusted opening count

Stock records what you have, where it is, and what it cost. It can track batches and serial numbers when needed, and buyers can see expected stock levels before they place an order.

In our experience, the opening stock count is where go-lives run into trouble, and the cause is rarely the software. If the quantities loaded on day one don’t match the shelves, every later sale and receipt carries that gap forward. Give the team enough time to count and check opening stock before go-live.

Importers also need freight, customs, and clearance costs added to item value. These fees often arrive on separate bills, and ERPNext can spread them across the received goods. This gives finance a truer cost and margin for each item.

Buying joins supplier work to stock and finance

Buying starts with an internal need and ends with received goods and a supplier bill. Teams can request prices from suppliers and compare their offers side by side. An approved purchase order then tells the warehouse and finance what to expect.

This connection helps prevent surprise bills or unplanned deliveries, and it shows managers which ordered goods haven’t arrived yet. Approval rules can also match the company’s buying limits.

Production adds materials and factory work

Factories add production after stock and buying are stable. A BOM, or bill of materials, lists what is needed to make one product. A Work Order then tells the factory what to make and which materials to use.

Clean item codes and correct BOMs matter more than extra features, because wrong material lists produce wrong demand and wrong costs. We don’t start Work Orders until the BOMs are cleaned up. Then we test a few real products from start to finish before wider use.

What projects, services and HR cover

Projects show time and cost by job

Project-based firms need to know whether each job is making money. ERPNext can group tasks, time, purchases, and expenses under a project. You can then see what a job has cost before the last invoice goes out. A Timesheet supports hourly billing when the contract is based on time.

Contractors often need bills of quantities and progress claims, which are not standard ERPNext features. IBAN can add them through customization when the business process calls for them.

Assets quality and support fill common gaps

Assets helps finance track fixed assets, depreciation, movement, and repair. Quality helps teams record checks and follow up on problems. Support tracks customer issues and response targets, and it also keeps warranty claims with item and serial details, plus records of service visits.

These areas are useful, but they don’t always belong in phase one. Add them when the team and source data are ready, since a smaller first launch is often easier to manage.

HR and payroll are now in Frappe HR

HR and payroll moved out of ERPNext core in version 14. They now run in the separate Frappe HR app on the same site, which covers employees, leave, attendance, shifts, payroll, expenses, and end-of-service gratuity.

For Saudi companies, this is the area to plan carefully. Gratuity and leave rules must be set up to match your contracts and company rules, and that work usually takes longer than people budget for. Payroll also posts its costs into ERPNext accounts, so the finance setup should be settled before payroll goes live.

Loans moved again in version 15, this time to the Frappe Lending app. You need it when loan repayments come out of salary, while employee advances remain in Frappe HR.

Which ERPNext modules should you start with

For a trading or distribution company, we usually start with accounting, sales, buying, and stock together. These areas exchange data every day, and launching them at once means staff don’t have to copy orders and values between tools.

A service firm may start with accounting, sales, and projects. A factory adds production once its items and BOMs are ready, and HR can follow after accounts and cost centers are settled.

  • Choose the work flow that earns revenue and receives payment.
  • Check customer, supplier, item, account, and opening stock data.
  • Set roles and approvals around real job duties.
  • Test full sales, buying, and payment cases before launch.
  • Move optional areas into a later phase.

We also keep early customization focused. Extra fields and print layouts are often useful, but every change needs testing and upkeep. Large changes to standard workflows make each upgrade harder.

Some industry apps also left ERPNext core in version 14. Healthcare, education, agriculture, and non-profit continued as separate apps. Hospitality was dropped from core, as noted in the official ERPNext version 14 release notes.

Our ERPNext implementation services page explains how we plan and deliver a rollout. We recommend agreeing on the first phase before discussing optional features, which keeps the project tied to real business needs.

Frequently asked questions

What are the main modules in ERPNext?

The main areas are Accounting, Selling, Buying, Stock, Manufacturing, Projects, Assets, Quality, Support, and Point of Sale. CRM tools for sales follow-up are also included, while HR and payroll use the separate Frappe HR app.

How many modules does ERPNext have?

There isn’t one useful number for every version. ERPNext has about a dozen main business areas. Longer lists often count separate Frappe apps such as Frappe HR, so check the version before comparing totals.

Can I use only the ERPNext modules I need?

Yes. You can set up and show only the areas each team needs. If you hold stock, we still advise launching accounting, sales, buying, and stock together, since each one passes its documents to the others.

Does ERPNext have HR and payroll?

Yes, through the separate Frappe HR app since version 14. It runs on the same site and connects payroll costs to ERPNext accounting.

Is there a price for each ERPNext module?

No. ERPNext and Frappe HR are open source and don’t charge a license for each module or user. Businesses still pay for hosting, setup, support, and any custom work.

Can ERPNext modules be customized?

Yes. You can add fields, approvals, print layouts, reports, and separate custom apps. We recommend changing only what supports a real business need, since heavy changes add upgrade work.