Selling Settings
Selling Settings is the settings area where you specify default behaviors, rules, and validations that apply to sales masters like Customers and Items and transactions like Sales Orders and Sales Invoices across the sales cycle.
To access Selling Settings, go to:
Customer Defaults
1. Customer Naming By
As a new customer is created, ERPNext generates a unique customer ID automatically.
As a default, the customer ID is generated from the customer name. But if you want to stick with a predefined naming series, you can activate the Customer Naming Series.
To create it, set the Customer Naming By field to "Naming Series" in Selling Settings. This will create customer IDs based on the specified series, e.g.: CUST00001, CUST00002, CUST00003, etc.
This is helpful to keep standardised, sequential customer codes throughout the system, particularly in high-volume scenarios.
2. Default Customer Group
You can specify a default customer group in selling settings, and it will be assigned automatically when a new customer is added.
ERPNext enables you to generate quotations for customers as well as leads. Upon converting a sales order generated out of a quotation made for a lead into a sales order, the system will automatically try to convert such a lead to a customer. The customer group during this conversion is allocated from the default selling setting. If no default customer group is set, the system will show a validation error asking you to enter a customer group manually prior to creating the customer.
3. Default Territory
Choose a default territory that will be automatically updated when a new customer is created.
Quotations can be generated for customers as well as leads. When a quotation generated for a lead is converted to a sales order, the system automatically tries to convert the lead to a customer. During conversion, the Territory value of the new customer is retrieved from the default Territory specified in Selling Settings. If there is no default territory set up, the system will show a validation error asking you to enter a territory manually before the customer can be created.
Item Price Settings
1. Default Price List
Price List established in this field will be automatically updated in the Price List field of sales transactions such as Quotation, Sales Order, Delivery Note, and Sales Invoice.
2. Maintain Same Rate Throughout Sales Cycle
It keeps the same rate consistent throughout the sales process. Once activated, ERPNext will check if an Item's price is being altered in a Delivery Note or Sales Invoice based on a Sales Order.
3. Action if Same Rate is Not Maintained Throughout Sales Cycle
You can set the action system will take if the same rate is not being sustained in the "Action If Same Rate is Not Maintained Throughout Sales Cycle" field:
Stop: ERPNext will prevent you from altering the price by raising a validation error.
Warn: The system will allow you to save the transaction but warn you with a message when the rate is altered.
Note: This field will only appear if Maintain Same Rate Throughout Sales Cycle is checked.
4. Role Allowed to Override Stop Action
Lets you specify particular user roles that override the "Stop" action when the system identifies a change in rate and action is specified as Stop in "Maintain Same Rate Throughout Sales Cycle". Note: This option is only displayed if "Maintain Same Rate Throughout Sales Cycle" is turned on and the action is specified as Stop.
5. Allow User to Edit Price List Rate in Transactions
The item table within sale transactions includes a field named Price List Rate. This is a non-editable field in all the sales transactions by default. This is done to get the price of an item from Item Price record and the user cannot edit it. If you want the Item Price from the Price List of an item to be editable, you need to uncheck this field.
6. Validate Selling Price for Item Against Purchase Rate or Valuation Rate
When selling, you should be aware that you are not incurring losses. Allowing for this checking will check the Selling Price of the item against its buying/valuation price. If the selling price of an item is below its buying price, then you will receive a notice when this box is checked.
7. Calculate Product Bundle Price based on Child Items' Rates
Enabling this will do the following:
- The Rate column in the Packed Items or Bundle Items table is made editable.
- The system computes the rate of the product bundle as the sum of the rates of its constituent child items.
Note: When enabled, manually setting the rate of the product bundle in the master item table will be overridden when saved—it will revert to the sum of its child items' rates.
8. Allow Negative Rate for Items
Turn this feature on to allow negative item prices in sales. This can be used for heavy discounting, product return processing, issuing refunds, or performing special promotion discounts where item values can go below zero.
Transaction Settings
1. Is Sales Order Mandatory to Create Sales Invoice & Delivery Note?
If you want to make the creation of Sales Order a necessity prior to the creation of a Sales Invoice or a Delivery Note, then you need to set the 'Sales Order Required' field as 'Yes'. By default, this will be 'No'.
This setting can be overridden for specific customer by placing check against "Allow Sales Invoice Creation Without Sales Order" checkbox under customer master.
2. Is Delivery Note Mandatory for Sales Invoice Creation?
To set up Delivery Note creation as compulsory prior to Sales Invoice creation, you must make this field 'Yes'. This will be 'No' by default.
This setting can be overridden for a specific customer by checking the "Allow Sales Invoice Creation Without Delivery Note" option in customer master
3. Sales Update Frequency
The frequency with which project progress and company transaction details are to be updated. By default it is for Each Transaction, you can also update it as Daily or Monthly if you have numerous transactions daily.
4. Blanket Order Allowance (%)
It signifies the percentage one can sell over and above the Blanket Order amount
5. Permit Item to be Added More Than Once in a Transaction
This is a validation test which disallows an item to be added more than once in the same transaction if not checked. Sometimes this could be an explicit requirement if so check this box.
6. Permit Multiple Sales Orders against a Customer's Purchase Order
While creating a Sales Order, you can modify the Purchase Order ID and Date received from the Customer. You can enter only one Sales Order against the PO No. and Date of the Customer. But if you want to permit the entry of multiple Sales Orders against the same PO No. of the Customer, mark the check box "Allow multiple Sales Orders against a Customer's Purchase Order".
7. Permit Sales Order Creation From Expired Quotation
This permits creation of sales orders from quotations that have expired, for convenience in processing orders despite old quotes.
8. Don't Reserve Sales Order Qty on Sales Return
It prevents the automatic reservation of stock quantities from sales orders when processing sales returns.
9. Hide Customer's Tax ID from Sales Transactions
According to statutory requirements, the majority of customers are allocated a distinctive tax ID, which should be indicated in sales transactions. Yet, if you do not wish to apply this functionality, you can turn it off by activating the respective setting.
10. Enable Discount Accounting for Selling
Activated, there will be individual ledger postings for discounts in a specific discount account.