D.Haus Bahrain expands to Saudi Arabia with ERPNext

Use Case:

D.Haus Bahrain expands to Saudi Arabia with ERPNext as their backbone software for all aspects of business operations. D.Haus Bahrain is one of existing clients of 9T9 Information Technology, Bahrain. The company has been using ERPNext from V11 version. Since the successful implementation of V11. the client and the employees have been very satisfied with ERPNext and the customization we achieved for their use case. Choosing a right software was a no brainer for the management when expansion discussion was first held.

Primary Objective

1. KSA VAT requirements: ERPNext is fully compliant to the Saudi Arabia ZATCA VAT requirements. Client was delighted that there was no changes that was required to ensure sales and purchase taxation was available as out of the box.

2. Inventory management: The software should accurately record inventory during purchase and sales. It should include variation of item. Example Model A of an item in multiple colours like Red, Blue Green without requirement of creating multiple item codes for each variation.

2. Accounting: An IFRS compliant accounting system having automated ledger entries thereby reducing manual entry to the lowest possible.

3. Integration: The software should have ability to integrate with e-commerce website to record sales, create payment entries and manage inventory.

4. Reports: Client requested for multiple complex reports which can be generated on click of button.

The Solution

ERPNext V13 without any core customization and our inhouse built application plugged into the software.  Hosted on Amazon Web Server in Bahrain, ERPNext delivers real-time updates to the management at the head office based on Bahrain District 1. Easily accessed from any location globally. A complete software that has point of sales, purchase, stock, accounts and Saudi Arabia VAT module

Inventory management through purchase and sales

User easily creates Purchase Receipt that increases the stock and its respective financial value. System was configured to follow Moving Average method. This ensures that valuation rate is average of purchase price. For international purchases the software has an additional feature called Landed Cost Voucher. By loading all other cost like customs, transportation, services, commission etc. it increases the purchase cost of items. ERPNext delivers granular purchase price and highly accurate profitability per item.

When a sales occurs the software deducts the sold item and reduces the cost of it. This makes sure that inventory and financial records are accurate.

Accounting and Financial Reporting

Accounting modules with is IFRS compliant sits right in the middle of the software. It can be termed as the heart of the software. All purchases and sales ledger entries are created by system based on user inputs. This method reduces manual journal entries and give huge comfort and confidence to external auditors. The system calculates Bahrain VAT automatically. User is able produce VAT report as per NBR layout. The VAT filing calculation process has been reduced from days to just few minutes.

Integration WIP

Client is currently working with a 3rd party to build an e-commerce platform on Laravel. At 9T9 Information Technology, Bahrain, we are working the 3rd party to deploy ERPNext as the primary software for all major aspects of the website. The synchronization will be through custom build API. Watch this space for update as soon as we successfully go live.

Reports

Multiple reports like item consumption, hourly sales, highest selling item etc. were created to ease understanding of business. Now each item group profitability can be pulled in just couple of clicks. Reports are used to understand sales volume, peak time, items consumption and commission calculation.

The Result

An accurate and transparent work process which has eliminated multiple mundane work. All information is in real-time which give the stake holders ample time to take important decisions. Our ERP software has streamlined almost all aspects of business that has increased  profitability, staff productivity and greatly reduced risk of theft of inventory.

The project of D.Haus Bahrain expands to Saudi Arabia with ERPNext was delivered in a very short time and much above client expectation. Contact us for your unique use case that can be managed by our ERP (Enterprise Resource Planning) software.