A System for a Distribution Company: What It Does, Where to Start

Distribution 11 August 2026 1 min read

If your salesperson takes an order without knowing whether the stock is there or what the customer already owes, the problem is not the salesperson. Stock, prices and receivables sit in three separate places. ERPNext puts them in one system, so every order is checked against all three before it is confirmed.

What the system does for you

Stock per item in every warehouse, including what is reserved for orders not yet shipped, so the salesperson sees what is actually free to sell.
Each customer's price comes out on its own, from rules you write once: customer group, quantity, territory, promotions.
A credit limit per customer. An order that goes over it cannot be confirmed without someone who has the authority.
A reorder level per item in each warehouse. When stock falls below it, the system raises a purchase request.
Invoices go to the Tax Authority from the same system, through TaxBridge.

What we set up first

Stock and purchasing first, because prices and credit limits mean nothing on top of wrong stock figures. Then the pricing rules, then the credit limits.

Frequently asked questions

Is our pricing too complicated for a standard system?

Usually the pricing is not complicated — it is unwritten. Write the rules down first. Most distributors find four or five rules and a list of exceptions, which any standard pricing engine handles.

Tell us how many locations hold your stock and whether your salespeople can see a customer's balance while taking the order. Those two answers show us where to start.

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