Order financing

Making my initial investigation into ERPNext. How would one model the following flow with ERPNext? (line of credit or inventory floorplan type record keeping)

  • Order placed by customer
  • Loan taken out against order for cost (not sale price) required to manufacture and fulfill order
  • Order fulfilled and paid by customer for sale price
  • Loan amount plus interest repaid
  • interest fee recorded and used to calculate order profit/margin/roi

This one is going to require work outside of ERPNext right now. There isn’t a “loan” document type per se in the platform that will help you track the interest. That piece will need to be tracked outside of ERPNext and then journal entries (JV) will need to be manually entered.

Order placed by customer is a quotation → sales order
Loan taken out is a manual JV entry for a loan liability
Order fulfilled is a stock entry (especially if what you are doing is serialized)
Order paid is a payment request → payment entry (all handled from the sales order)
Loan amount is a manual JV entry for payment against liability w/ interest
P&L is that handled normally.

Hope this helps. There is a feature going in to handle loans to employees and I actually entered a git issue to have this feature extended for your use case and others.

Thank you for the reply. Can you link the issues I could follow and is there any sort of timeline for this? I.e. is this something that has already been in the works or am I the first to bring it up?

This is the issue where I ask to have employee loan feature extended

Here is the discuss post about the new employee loan feature