Pharmacy vs store

ERPNext Stock/Inventory
1

Hiii experts,
please advise in the following issue:
I have 3 main stores and I have 4 pharmacies, I transfer the pharmaceuticals from main stores to pharmacies for retails.
My question how can I set pharmacy in erpnext? is as a store or what?
Thanks

2

For Stock Transfer entries, you would have to maintain them as separate “Warehouses”

1 Like
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Hi Dufani,

You have to answer a few questions for yourself before you decide how to set up your instance of ERPNext:

  1. Are these (Main Stores, Pharmacies and the rest of your organization) all a single entity with a single P&L, Balance Sheet and Financials? Or are each of them separate entities?
  2. Are there any taxes or duties that are applicable when you transfer material from one store to another or from a store to a pharmacy?

If the answer to question #1 is one entity and the answer to #2 is no (no taxes), your best bet is to set up each Pharmacy as a separate warehouse on your instance of ERPNext (Home>Stock>Warehouse>New). You may want to spend a little bit of thought about how you want your reports to look like. For instance if you want all of your Pharmacies Stocks to get consolidated in your reports, you may want to create a Pharmacies Warehouse Group and then create the three pharmacies underneath this tree. Similarly for your main stores.

So as you transfer stocks from your main warehouses to the pharmacies, you can do a stock transfer and when you sell from the Pharmacy to your customers, you do a Sales Invoice (Point of Sale or normal).

You may want to spend a little bit of time thinking about your cost center tree as if you want to track the profitability of your pharmacies, the transactions should be done on the appropriate cost centers.

If your pharmacies are all different entities due to regulatory purposes or due to tax purposes, you have to create that many companies on your instance of ERPNext and then you have to do a sale and a purchase receipt when you send stocks from your Main Stores to your pharmacies.

if all pharmacies, stores and the entire organization is a single entity, but you have to pay taxes as you move stocks from the main stores to the pharmacies, then you may have to invoice your pharmacies and record the tax liability. In such cases you will end up invoicing yourself, but you may have to be a little careful in selecting appropriate income and cost of goods sold accounts or you may end up double counting sales - once when you move stocks from your Main Stores (this is assuming you have to book a sale for regulatory or tax purposes) to your pharmacies and another time when you sell from the pharmacy to the customer.

I don’t wish to make this more complicated than it is, but I just wanted to sensitize you that implementing is a journey. Your best bet is to start simple, look at the data that ERPNext is throwing up at the end of the month or quarter and then decide how much more granular you want to the data to be and implement it at the next period (month or quarter).

Of course thinking about these things now, will make it more probable (no guarantees here) that you will get the data at the detail level you are expecting about your business.

But jump in and get started. It’s better to begin today and get less imperfect with time than to wait for a perfect start, which is of course an elusive pursuit.

Hope this helps

Thanks

Jay

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I really appropriate your amazing reply and thank you very much Jan.
Jan I have a question for you, please advise me about the reliability level of ERPNext from your experience?
Thanks and best regards

5

Hi Dufani,

If you are using ERPNext’s hosting the whole stack is totally reliable. If you have your own install like on AWS or a local install on a server at your office, please make sure you have somebody competent to support you. Sometimes the updates break and you need somebody to do a bit of research to fix it.

You don’t need to worry about reliability issues at all. All my clients are very happy with EREPNext’s reliabiity. This is not to say you will not have problems but the Frappe team is so responsive when you use the hosted solution, that you can really focus on your business.

I am a ERPNext partner and therefore am biased about ERPNext, but I really haven’t had any reliability issues with ERPNext at all.

Thanks

Jay

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Thanks Jay for your quick reply.
I like to use a hosting managed by frappe team and really love them, but we have many internet connection issues in my country and prefer to use a self hosting. Can you help me in self hosting by remote access and make a deal with me for support.
best regards,

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I’m definitely very happy to help you, can you please send me your email ID or send me an email at jram.at.epochconsulting.in

Thanks

Jay