Please don't create accounts for Customers and Suppliers - What does it mean?

[markgates]

“Please don’t create accounts for Customers and Suppliers” - What does it mean?
how can i create the account ledgers for customers and suppliers then?

[Manan_Shah]

You do not need to create separate ledgers for each Customer/Supplier. Each accounting entry against a Supplier will be recorded on the respective Ledger type with the name of Supplier(Party Type and Party ) and like-wise for Customer.
You can even filter accordingly using the Customer or Supplier’s name.

[Nawar_Al-Mallouhi]

Dear Manan

I know that we don’t have to but sometimes the accountant people are used to something and they want it to be that way.

Is there a possible way to do it the old fashioned way ? plus is there a way to generate account number automatically from the system ?

[Manan_Shah]

@Nawar_Al-Mallouhi

Is there a possible way to do it the old fashioned way ?

Yes, you can create a separate ledger Supplier-wise and map it to the Supplier via Supplier Master.

@Nawar_Al-Mallouhi

plus is there a way to generate account number automatically from the system ?

You will need to do some custom scripting here if you want to auto-generate the Account Numbers https://erpnext.com/docs/user/manual/en/customize-erpnext/custom-scripts

@Nawar_Al-Mallouhi

I know that we don’t have to but sometimes the accountant people are used to something and they want it to be that way.

While you are free to use the software as you wish, here is my personal opinion:
Accountants are used to it because they have been using accounting software like Tally for ages. The reason why a company chooses to move away from that is that they want better reporting which only an ERP can give. If the accountants continue doing what they have been doing, creating a ledger for each supplier and just making Journal entries then we are under utilising ERP.
The problem with separate ledgers is the Balance Sheet looks too long and untidy (imagine having 500 suppliers).
With ERPNext accountants do not need to make Debit Credit entries for Invoices and payment as the entries are made automatically by the software. If the accountants are explained the advantages of ERPNext, they should be happy to adopt the new system.

Hope this helps.

[Nawar_Al-Mallouhi]

Thanks alot Mana

You did really help !

@Manan_Shah

Yes, you can create a separate ledger Supplier-wise and map it to the Supplier via Supplier Master.

Doing the mapping is as far as i think is manual task that would have to be done , similar to when creating the customers, is there a way create it automatically and give it the name exactly like the supplier name ?

@Manan_Shah

You will need to do some custom scripting here if you want to auto-generate the Account Numbers https://erpnext.com/docs/user/manual/en/customize-erpnext/custom-scripts

Actually this is very helpful is there a document explains all the variables\parameters that can be used in order dig in and find a way to achieve our target ?

[Manan_Shah]

Hi
You will need someone with coding knowledge to achieve what you are looking for. Automating the ledger creation will need some scripting.