Buying Settings
Buying Settings allow you to configure the default behavior of purchasing transactions in ERPNext. These settings help standardize procurement workflows, control validations, automate subcontracting, and define system defaults for suppliers and buying transactions.
To access Buying Settings, navigate to:
Home > Buying > Settings > Buying Settings
1. Naming Series and Price Defaults
These settings define the default values used while creating suppliers and buying transactions.
1.1 Supplier Naming By
This setting determines how ERPNext generates the unique ID for newly created Suppliers.
Available options are:
- Supplier Name – Uses the supplier’s name as the document ID.
- Naming Series – Generates IDs using a naming pattern such as SUPP-.#####.
Use Naming Series when standardized supplier codes are required.
1.2 Default Supplier Group
Select the Supplier Group that should be assigned automatically whenever a new Supplier is created.
This saves time if most suppliers belong to the same category.
1.3 Default Buying Price List
Select the default Buying Price List used in purchase transactions.
ERPNext automatically fetches item prices from this price list when creating Purchase Orders, Purchase Receipts, and Purchase Invoices.
1.4 Action if Same Rate is Not Maintained
This setting defines how ERPNext responds when an item’s rate changes during the buying process.
Available options include:
- Stop – Prevents the transaction until the rate discrepancy is resolved.
- Warn – Displays a warning but allows the transaction to continue.
1.5 Role Allowed to Override Stop Action
Specify which user role can override the Stop validation when rate changes are detected.
This allows authorized users to proceed while restricting other users.
2. Transaction Settings
These settings control validations and behavior during the purchase cycle.
2.1 Purchase Order Required for Purchase Receipt and Purchase Invoice
When enabled, ERPNext requires every Purchase Receipt and Purchase Invoice to originate from a Purchase Order.
This setting can be overridden for individual suppliers by enabling Allow Purchase Invoice Creation Without Purchase Order in the Supplier master.
2.2 Purchase Receipt Required for Purchase Invoice
When enabled, Purchase Invoices can only be created after a Purchase Receipt has been submitted.
Service Items are exempt since they do not require physical receipt.
This validation can also be overridden for specific suppliers.
2.3 Blanket Order Allowance (%)
Specify the percentage by which ordered quantities may exceed the quantity defined in a Blanket Order.
For example:
- Blanket Order Quantity: 100 Units
- Allowance: 10%
- Maximum Order Quantity: 110 Units
2.4 Update Frequency of Project
Defines how frequently ERPNext updates the project’s total purchase cost from buying transactions.
2.5 Maintain Same Rate Throughout Purchase Cycle
When enabled, ERPNext validates that item rates remain unchanged between:
- Purchase Order
- Purchase Receipt
- Purchase Invoice
If the rate changes, ERPNext performs the action selected in Action if Same Rate is Not Maintained.
This validation helps ensure purchasing consistency throughout the procurement cycle.
2.6 Allow Item to be Added Multiple Times in a Transaction
When disabled, the same item cannot appear multiple times within a Purchase Order or other buying transaction.
Users can still increase the quantity on a single row instead of creating duplicate rows.
2.7 Bill for Rejected Quantity in Purchase Invoice
When enabled, rejected quantities received during Purchase Receipt are also included while generating the Purchase Invoice.
2.8 Set Valuation Rate for Rejected Materials
Normally, rejected materials are assigned zero valuation and no accounting entries are created.
When this option is enabled:
- Rejected materials receive a valuation rate.
- Accounting entries are generated.
- Inventory valuation includes rejected materials.
This option is available only when Bill for Rejected Quantity in Purchase Invoice is enabled.
2.9 Set Landed Cost Based on Purchase Invoice Rate
This option is available only when Maintain Same Rate Throughout Purchase Cycle is disabled.
If exchange rates or supplier pricing change after goods are received, ERPNext can automatically update inventory valuation using the Purchase Invoice rate.
Example:
- Purchase Receipt created at 100 per unit.
- Purchase Invoice created later at 150 per unit.
- ERPNext creates a Repost Item Valuation record.
- Stock valuation is updated to reflect the invoice rate.
2.10 Disable Last Purchase Rate
When enabled, ERPNext does not automatically fetch the last purchase rate while creating new purchase transactions.
This allows users to enter fresh pricing without system suggestions.
2.11 Use Transaction Date Exchange Rate
When creating a Purchase Invoice from a Purchase Order in foreign currency, ERPNext uses the exchange rate applicable on the Purchase Invoice date instead of inheriting the Purchase Order exchange rate.
This setting applies only to Purchase Invoices.
2.12 Over Order Allowance (%)
Defines the percentage by which Purchase Order quantities may exceed the quantity requested in the originating Material Request.
Example:
- Material Request: 100 Units
- Allowance: 10%
- Maximum Purchase Order Quantity: 110 Units
3. Subcontracting Settings
These settings control how subcontracting transactions are processed.
3.1 Backflush Raw Materials Based On
Choose how raw materials should be consumed during Subcontracting Receipt.
Available options are:
- BOM – Consumes materials according to the Finished Goods Bill of Materials.
- Material Transferred for Subcontract – Consumes only the quantities actually transferred to the subcontractor.
3.2 Auto Create Subcontracting Order
When enabled, ERPNext automatically creates a Draft Subcontracting Order after submitting a Purchase Order marked as subcontracted.
3.3 Auto Create Purchase Receipt
When enabled, ERPNext automatically creates a Draft Purchase Receipt for subcontracted service items after submitting a Subcontracting Receipt.
3.4 Over Transfer Allowance (%)
Defines the percentage by which raw material transfers may exceed the ordered quantity.
For example:
- Ordered Quantity: 100 Units
- Allowance: 10%
- Maximum Transfer Quantity: 110 Units
4. Benefits
Buying Settings help organizations:
- Standardize purchasing workflows.
- Reduce manual data entry.
- Maintain pricing consistency.
- Improve inventory valuation accuracy.
- Control purchasing validations.
- Automate subcontracting processes.
