Understanding the ERP Architecture

Core concepts and architectural building blocks of NEXO 4 ERP and ERPNext.

Fundamental Concepts

To effectively use and configure NEXO 4 ERP, it is helpful to understand the underlying principles:

1. DocTypes (Document Types)

Everything in the system is defined by a DocType. DocTypes represent database tables and models—such as Customers, Sales Invoices, Items, and Employees.

2. Masters vs. Transactions

• Master Data: Core records that rarely change, such as Items, Customers, Suppliers, Warehouses, and Chart of Accounts.
• Transaction Records: Operational documents created during day-to-day business, such as Sales Orders, Purchase Receipts, and Journal Entries.

3. Submittable Documents

Transactions typically undergo a lifecycle:

• Draft: The document is being drafted and can be edited freely.
• Submitted: The document is committed. General Ledger and Stock Ledger entries are finalized.
• Cancelled: If an error occurs, submitted documents can be cancelled and amended.

4. General Ledger & Stock Ledger

Every transaction with financial or physical impact automatically creates linked ledger entries, ensuring zero discrepancy between accounting and stock balances.