How to Create Customer or Supplier Ledger in ERPNext

In this video, We will learn How to create customer or supplier Ledger in ERPNext.

- Unlike many traditional accounting systems, ERPNext does not require you to manually create individual ledger accounts in the Chart of Accounts for each Customer, Supplier, or Employee.

- Instead, ERPNext uses Receivable and Payable account types to automatically manage ledger transactions linked to these parties.

- When you set up a new company in ERPNext, the system generates default Receivable and Payable accounts, which are configured in the Company’s Accounting Settings.

- Every transaction against a Customer or Supplier automatically posts entries to these default Supplier Ledger or Customer Ledger accounts.

- If you need to assign a different default ledger account for a specific Customer or Supplier, you can do so under the Accounting section of their respective master records.

- For international transactions, where a Customer or Supplier operates in a currency different from your company’s base currency, it’s recommended to create a Receivable or Payable account in that currency and set it as the default for that party. This ensures accurate financial tracking in multi-currency environments.

- In ERPNext, every Receivable or Payable transaction entry includes a Party Type (such as Customer or Supplier) and the specific Party name.

- For Receivable account, entry customer will be party type and party will be specific customer against which entry has been done.

- This structure eliminates the need for maintaining separate ledgers for every party in the Chart of Accounts.

- All such parties can be linked to one or multiple Receivable or Payable type accounts without having to create unique ledgers for each.

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