ERPNext

Overview

ERPNext is a free, open-source ERP released under the AGPL-3.0 license that covers accounting, invoicing, stock and warehouse management, manufacturing (bill of materials, production planning, work orders and subcontracting), CRM, procurement, projects and HR from a single system. Built by Frappe on an API-first architecture, it exposes a REST API and connects to services such as Shopify, PayPal and Stripe. It can be self-hosted at no license cost or run as managed hosting on Frappe Cloud, which uses compute-based pricing rather than per-user fees. It is aimed at small and mid-sized businesses looking for a cost-effective alternative to proprietary suites such as SAP and Oracle.

Best for small and mid-sized businesses that want a full open-source ERP they can self-host or run managed, without per-user fees.

ERPNext is the most established open-source ERP, giving a company the full commercial stack (accounting, invoicing, inventory, manufacturing, CRM and projects) without per-user license fees. It can be self-hosted for free by a team that can run and maintain it, or taken as managed hosting on Frappe Cloud. That openness is the point for organizations that want control over their data and no vendor lock-in; the trade-off is that self-hosting needs technical capability.

Key Facts

Features

Project costing

Yes, via the Projects module with tasks, timesheets and expense tracking

Invoicing

Yes, sales orders, invoicing and pricing rules with full accounting

Digital receipt capture

No, not in core. The manual creates a Purchase Invoice by hand, from a Purchase Order or a Purchase Receipt, or on a recurring schedule for a supplier that bills the same amount each period; invoice OCR comes from third-party apps on the Frappe Cloud marketplace rather than from ERPNext itself

Reporting and controlling

Yes, general ledger, financial statements and multi-currency reporting

Time tracking

Yes, timesheets in the Projects module

Integrations and API

Yes, REST API with an API-first architecture

Integrations

• Shopify
• PayPal
• Stripe

Deployment and Support

Deployment

• Cloud (SaaS)
• Browser-based
• On-premise

Support

• Email helpdesk
• Community forum

Onboarding

• Documentation and knowledge base
• Video tutorials
• Live online demos and webinars

Company size

• Small and mid-sized

Suitability

The table combines the industries the vendor addresses with the company sizes the tool is aimed at. An empty cell means the combination is not stated, not that it is ruled out.

Pros and Cons

Pricing

• Self-hosted

  $0

  Open source under AGPL-3.0. Self-host on your own server with no license or per-user fees.

• Frappe Cloud

  $5

  Per month, from. Managed hosting on Frappe Cloud with compute-based pricing that scales with usage, not per user.

Best For

• Technology
• Consulting

Alternatives and Comparisons

FAQ

Is ERPNext really free?

Yes. ERPNext is open source under the AGPL-3.0 license and can be self-hosted at no license or per-user cost. Managed hosting on Frappe Cloud and professional support are paid options.

Can ERPNext be hosted in the cloud?

Yes. You can self-host ERPNext on your own server or run it as managed hosting on Frappe Cloud.

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