Setting up ERPNext for Construction Company

Hello ERPNext Community,

I’m setting up ERPNext for a construction company and need guidance on the best approach to handle our specific business scenario.

Current Situation:

  • We’re a construction company managing multiple project sites
  • We don’t maintain physical warehouses
  • Materials (like steel and cement) are purchased and delivered directly to project sites
  • Currently, we record these purchases as direct expenses to each project/site

Requirements:

  1. Need to use Purchase and Sales modules in ERPNext
  2. Want to track material costs per project
  3. Need to generate reports showing:
    • Total cement/steel quantities used per project
    • Cost analysis per material type per project
    • Real-time project material consumption

Example Scenario:
Let’s say we have “Project A - Residential Building”:

  • Purchase 1: 100 bags of cement @ $10/bag delivered to site
  • Purchase 2: 2 tons of steel @ $1000/ton delivered to site
    We need to track these materials and their costs specifically for Project A.

Questions:

  1. What’s the recommended setup for handling direct-to-site material purchases?
  2. Should I create virtual warehouses for each project site?
  3. How can I configure the system to track materials without physical warehouse management?
  4. What’s the best way to link purchases directly to projects for cost analysis?

Current Challenges:
I’ve tried setting up the purchase module but couldn’t configure it to work as needed. The standard warehouse setup seems more oriented towards physical inventory management.

Any guidance or best practices would be greatly appreciated.

Thank you in advance!

There’s detailed explanatory video on EPC segment, you should check this one out. Here’s the link : https://www.youtube.com/watch?v=x47RzI_vUgQ