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 other accounting softwares, here we will not define ledgers for Customers, Suppliers, or Employee accounts directly in chart of accounts.

- Instead, we will define create account as Payable or Receivable type.

- While creating company, default Payable and Receivable accounts are generated and saved in company’s accounts settings.

- Any transaction against customer or supplier will use this default receivable or payable account.

- If you like to set any other default account for any customer or supplier, you can set the same in accounting section of that customer or supplier.

- If you are dealing with customer or supplier where, default currency is different than your company currency. It is good ideal to create receivable or payable account in that currency and set it as default for customer or supplier.

- So, in ERPNext all accounting entries for Receivable or payable type accounts will also have party type and party.

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

-  Same way in ERPNext Employee, Members etc are also party type for which separate ledger creation in chart of account is not required.

- All these parties can be linked to any one, or more receivable, or payable type account.

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