Project in ERPNext
A Project in ERPNext represents a planned piece of work that is created to achieve a specific objective such as producing something new, improving an existing process, or gathering information about a defined scope of work.
In ERPNext, project management follows a task-driven approach where a project acts as the parent entity and multiple tasks are created under it to break down execution into manageable steps.
For example, developing a new smartphone can be treated as a project, while design, prototyping, testing, and delivery become individual tasks within that project structure.
A Project acts as a central container that connects tasks, teams, time tracking, costs, billing, and overall progress into a single unified workflow within ERPNext.
Accessing Projects
To access the Project module in ERPNext, navigate using the following path:
Home > Projects > Project
How to Create a Project
Follow the steps below to create a new Project in ERPNext:
- Go to the Project list and click on New.
- Fill in the required project details as described below.
Basic Project Details
- Project Name
The title of the project that defines its purpose or objective. - Status
By default, a project is created with the status Open. It can later be updated to Completed or Cancelled based on its lifecycle stage. - Expected End Date
The planned completion date for the project.
Additional Options While Creating a Project
- From Template
Projects can be created using an existing Project Template, which automatically generates predefined tasks and structure. - Expected Start Date
Defines the planned start date when the project is scheduled to begin. - Project Type
Used to categorize projects such as Internal or External for better organization and filtering. - Priority
Assigns urgency levels to the project, helping teams prioritize execution. - Department
Links the project to a specific department responsible for its execution and ownership. - Is Active
A toggle option used to activate or deactivate the project at any point in time. - Completion Method
Defines how project progress is calculated:- Manual
- Task Completion
- Task Progress
- Task Weight
Project completion percentage can be calculated based on task completion count, task progress values, or weighted task contributions depending on the selected method.
Project Configuration
Customer, Sales, and Access Control
- Customer
Used when a project is executed for a specific customer to maintain traceability. - Sales Order
Links the project with a sales order to track execution against agreed customer requirements and scope. - Project Users and Access
Allows adding external users such as customers, suppliers, freelancers, or contractors to view or interact with project data. Options include sending welcome emails and controlling attachment visibility. - Notes
Used to store additional project-related information or internal comments.
Project access control enables collaboration with external stakeholders while maintaining structured visibility and permission control within ERPNext.
Project Timeline Tracking
- Actual Start Date is automatically recorded from the first timesheet entry linked to the project.
- Actual End Date is automatically updated based on the latest timesheet activity.
Costing, Billing, and Financial Tracking
- Estimated Cost – Planned cost of completing the project.
- Total Sales Amount – Auto-filled from linked Sales Order.
- Total Costing Amount – Derived from timesheet entries.
- Total Billable Amount – Calculated from billable timesheet data.
- Total Expense Claim – Expenses submitted against the project.
- Total Billed Amount – Amount invoiced to the customer.
- Total Purchase Cost – Costs from purchase invoices linked to project procurement.
- Total Consumed Material Cost – Cost of materials issued through stock entries.
Margin Calculation
Gross Margin represents the difference between revenue and total project-related costs.
Gross Margin Formula:
Gross Margin = (Total Sales Amount + Total Billable Amount)
- Total Costing Amount
+ Total Billable Amount
+ Total Expense Claim
+ Total Purchase Cost
+ Total Consumed Material Cost
Gross Percentage Formula:
Gross % = ((Total Sales Amount + Total Billable Amount)
- Total Costing Amount
+ Total Billable Amount
+ Total Expense Claim
+ Total Purchase Cost
+ Total Consumed Material Cost)
/ Total Sales Amount * 100
Progress Monitoring
When the “Collect Progress” option is enabled, ERPNext automatically tracks project progress and sends updates to stakeholders based on configured frequency.
- Holiday List – Defines working days for progress reporting.
- Frequency – Sets reporting intervals such as hourly, daily, or weekly updates.
Automated progress tracking ensures stakeholders stay informed about project status without manual reporting effort.
