Multi Location Management In ERPNext

Growing a business also refers to expanding the business to various locations. While this growth is a positive sign it also indulges complexities and challenges. With the expansion, you are now handling multiple offices or warehouses instead of just one. Take a bank, for example, a bank is not just operating from one single location but numerous locations serving customers across different regions.

Why do Businesses need Branches?

● To reach more customers- Business grows by reaching more potential customers in different locations.

● Legal & regulatory compliance - Some businesses need separate branches to register for taxes and legal requirements.

● Optimize Inventory- Distribute the inventory strategically across branches to meet local demands and minimize local demands.

● Scaling Efficiency- Adding new branches can become a manageable process, rather than a chaotic expansion.

ERPNext: A centralized Hub for Branch Management

ERPNext simplifies the management of the multi-location setup, acting as a central platform connecting all branches in a one-view setup.

This Blog explores how ERPNext’s branch management capabilities streamline operations for both physical locations and Human resources. 

It helps segregate transactions, employees, inventory, and financial data by location — critical for accurate decision-making in a growing enterprise.

Navigation

● Login to your ERPNext Databases.

● Navigate to your HR Module.

● Under setup, you will see the “Branch” option.

● Then click on the + Add New Branch Button.

● Once filled in the Branch name you can save the Branch.

● Now we will link branch to respective employees using employee master.

● Navigate to HR Module → Employee.

● Then click on any of the employees from the visible list.

● Select the Branch under Company details section on any employee.

Branch Setup In ERPNext

Branch setup helps link employees to their respective units or divisions, making it easier to distinguish between different locations or departments.

ERPNext simplifies branch-level profit and loss tracking through the use of Accounting Dimensions. By setting up Branch as an accounting dimension, you can tag each transaction to its location which enables it to generate branch-wise financial reports, and filter ledgers without creating multiple companies. This keeps your finances clear, segmented, and easy to audit.

Navigation

● Navigate to the accounting module.

● Under Accounting Masters, click on the Accounting Dimension.

● Then to add a new accounting dimension, click on + New Accounting dimension.

● Then select “Branch” as a reference doctype.

● You can also select the company and the default dimension for instance if you are selecting the branch then the default dimension will be all the multiple locations or any value you are creating as your branch.

● To include this dimension in the calculation of the Balance sheet and profit loss account enable the checkboxes to make it mandatory.

     

● After filling out all the details, click on save.

● You can also view the impact of the Branch in the journal entry.

This keeps your finances not only transparent but smartly segmented.

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Conclusion

Setting up Branches in ERPNext allows businesses to scale efficiency while maintaining centralized control. By implementing branches in HR, Finance, Sales, Purchase, and Inventory, companies can achieve financial tracking, employee management, and operational efficiency.

By connecting branches with employees, you can gain a comprehensive view of the business, optimize operations, and create sustainable growth.

 Need Help Managing Multiple Locations? Contact Us for a Demo.

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