Project Workflow in ERPNext
The Project Module in ERPNext is used to track work that involves multiple steps, people, and transactions. A project acts as a central reference that connects tasks, time entries, materials, procurement activities, deliveries, and billing into a single structured workflow.
This example demonstrates how a simple manufacturing job can be managed as a project and how it integrates with multiple ERPNext modules across the business process.
A manufacturing company receives an order to produce a custom metal storage rack for a warehouse customer. The entire lifecycle of this order is managed through the Project Module to ensure visibility, coordination, and cost tracking.
Scenario
A manufacturing company receives an order to make a custom metal storage rack for a warehouse customer.
Prerequisites
- Create an Item named Storage Rack in ERPNext before starting the process.
Step 1: Create a Sales Order for the Rack
The process begins by creating a Sales Order for the customer requirement. This order defines the product, quantity, pricing, and delivery expectations.
Once the Sales Order is submitted, it becomes the foundation for downstream manufacturing and project activities.
Navigation path:
Home > Selling > Sales Order
The Sales Order acts as the trigger point for project creation, ensuring that customer demand is directly linked to execution planning and production tracking.
Step 2: Create Project from Sales Order
After the Sales Order is submitted, a Project can be created directly from it. This ensures traceability between customer orders and execution workflows.
Once created, the Project dashboard becomes the central workspace where all related activities such as tasks, timesheets, and cost tracking are managed.
The Project Dashboard provides a consolidated view of progress, task completion, time logs, and financial impact, enabling real-time monitoring of project execution.
Step 3: Create Tasks for the Project
The project is broken down into smaller tasks to ensure structured execution. Each task represents a specific stage of production.
In this example, tasks include cutting and welding, painting, and final assembly of the storage rack.
- Cutting & Welding
- Painting
- Final Assembly
Each task can be assigned to different team members, tracked independently, and updated based on progress.
Step 4: Purchase Materials and Create Stock Entries
Raw materials required for manufacturing the storage rack are procured through Purchase Orders. These materials are then received into inventory using stock entries.
This ensures that material availability is properly tracked before production begins, reducing delays in execution.
ERPNext connects procurement directly with the project, ensuring that all material costs are captured under the same project reference for accurate costing.
Step 5: Create Timesheets for Execution Tracking
Timesheets are created to record the actual time spent on activities such as steel cutting, welding, and painting.
These entries help track labor effort and directly contribute to project costing and billing calculations.
All timesheet entries are linked to the project, allowing ERPNext to calculate actual labor cost and compare it against planned estimates.
Step 6: Track Task Progress and Complete the Project
As work progresses, task statuses are continuously updated to reflect real-time execution progress.
- Tasks move through stages such as Open, In Progress, and Completed.
- Progress updates ensure visibility for all stakeholders involved in the project.
Once all tasks are completed and all activities are recorded, the project is marked as fully completed.
The completed project reflects total material usage, labor time, procurement costs, and execution status, providing a complete end-to-end view of the manufacturing job.
