ERPNext for Saving and Credit Cooperative: around 100,000 accounts

I am designing a solution for a saving cooperative, with around 30,000 members. ERPNext is one of the proposed options. Each member would have 3 accounts: Saving Account, Current Account and Loan Account. That means 90,000 accounts and the possibility of growing. Each member would make a minimum of 1 transaction every month for saving, and more if a member has a loan or withdraws some cash.

I know the best way to test this is set up an instance and just do it practically but I wanted to check out first if anyone has any experience handling that many accounts with ERPNext. How would the account tree behaves?

  1. Companies have used ERPNext to handle huge scale transactions.
  1. You need not add separate ledgers for each of the 30k members, instead use the party model.
    check 2.3 Integration with Accounts section in documentation on customer.

https://erpnext.com/docs/user/manual/en/CRM/customer

Thank you, I think the Party model may work.
My current understanding is: instead on creating a Loan account for each member, a common Loans single account will be created and all loan transactions posted there, specifying the party in the transaction.

So I created a new doctype Sacco Member, not I wanted to make it a Party Type. I can’t see anyway to create a new Party Type, it seems no one has that permission

I successfully confirmed all the features using the Party model. The only issue is that I failed to create a new Party Type from the UI even when you add all the perms to Administrator. The new button just doesn’t appear. I was able to import from an Excel file though

Creating a new party type is not a simple thing. You will have to integrate that with Accounting module.

Dear @RWEMA_Aimable I am wondering how will interest on saving by the members calculated automatically at the end of the month.I am interested because I had a potental client that I lost because I couldn’t know how to handle interest calculations on the savings account

In my case interest are calculated based on loan given. For each loan, a certain % is retained and posted as the cooperative’s income. At the end of the year, the total net profit (total income - expenses) is shared among members proportionally to the member’s current savings. The member’s share is posted back from income to saving account and can be withdrawn.

The formula of course depends on the way the cooperative works

I used to work as a loan officer and profitability consultant for a farmer-member-owned cooperative bank.
The party system in ERPNext is not yet flexible enough for this model, but it isn’t far away at all. The challenge that a coop presents is that the same party is at least two of customer, supplier and shareholder and depending on how dividends are paid, it’s likely that you’ll use all three modes depending on the transaction.

I successfully confirmed all the features using the Party model. The only issue is that I failed to create a new Party Type from the UI even when you add all the perms to Administrator. The new button just doesn’t appear. I was able to import from an Excel file though

This will look like it works until it doesn’t. As of V11, this system is not designed to handle a party of more than one type. We discussed this issue in the accounts working group some months ago. Making this change involves a lot of work in some of the core financial controllers of ERPNext. I seem to recall @saifi0102 has done some research into the feasibility of this and @FinForce (Liyakat) had some ideas as well. (Take this as evidence that we should keep better notes of our meetings).

The formula you present here is exactly what we used. Dividends were paid based on total interest paid per customer, effectively turning the transaction into a discount or refund on the previous year’s interest charges, rather than based on their savings amounts. My organization was non-depository, so this method of pro rata was not an option, though the logic is similar. Though it’s outside the scope of this thread, I’m up for debates on coop structures at any time.

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