Summary
A Gujarat based grocery distribution company specializing in premium quality dry fruits, spices, and essential household products at competitive prices serves customers primarily across Ahmedabad and other parts of Gujarat. The solution integrates a mobile application, ERPNext (Dark Store), and SAP Business One to create a unified and efficient business ecosystem.
It enables seamless management of end to end buying and selling processes with high accuracy and transparency. The system centralizes inventory, procurement, sales, and financial operations to reduce manual effort and operational errors. By digitizing core workflows, the organization enhances supply chain efficiency and real time visibility. This integrated approach supports scalable growth and operational excellence across its distribution network.
Client Overview
Industry: Grocery Distribution & Retail
Market Focus: Kirana Stores (Traditional Mom & Pop Grocery Stores)
Geographic Scope: Multi state operations with dedicated dark warehouses
Business Model: Commission based distribution with deposit backed inventory allocation
The Challenge
The client faced several critical operational challenges that threatened business scalability and efficiency:
• Fragmented Systems: Operating across multiple platforms (Mobile App, ERPNext, and SAP Business One) without proper synchronization led to data inconsistencies and operational bottlenecks.
• Complex Multi-Tier Operations: Managing dark warehouses across states with multiple bin locations, vendor codes, and commission structures required sophisticated coordination.
• Real-Time Inventory Tracking: Ensuring accurate inventory status from warehouse to delivery, including tracking goods in transit and batch-level management.
• Payment & Financial Control: Implementing strict financial controls with deposit-based allocation, prepayment/COD options, and preventing invoice generation before payment receipt.
• Returns Management: Handling product returns with proper credit memos while deducting from dark store commissions.
• Data Validation: Ensuring all transactions across platforms maintained consistency in quantities, prices, GST calculations, and totals.
The Solution
We designed and implemented a comprehensive REST API-based integration framework that connected all three platforms into a unified ecosystem, with SAP Business One serving as the single source of truth for master data and financial accounting.
Architecture & Integration Framework
The solution architecture follows a hub-and-spoke model: Mobile App ↔ ERPNext (Dark Store) ↔ SAP Business One
We implemented two integration configurations utilizing event-driven API execution:
• SAP GET API Setting: Fetches data from SAP to ERPNext and Mobile App (Customers, Item Master, Price Lists, Reports) via scheduler jobs and SAP-side document triggers.
• SAP POST API Setting: Pushes data from Mobile App/ERPNext to SAP (Sales Orders, Purchase Orders, Payments) triggered by ERP document events and mobile actions.
Master Data Management
We established SAP as the authoritative source for all master data:
• Item Master: All items are created and maintained exclusively in SAP, with real-time synchronization to ERPNext and Mobile App for additions and updates.
• Customer Master: Kirana stores register via the Mobile App, data is pushed to SAP for validation, and approved records sync back to ERPNext.
• Price Lists: Dual price list management (Kirana Store and Customer) with add/update capabilities synchronized across all platforms.
Purchase Operations Workflow
The purchase workflow ensures seamless inventory movement from central warehouses to dark stores:
• Dark stores create Purchase Orders in ERPNext: automatically generating Inventory Transfer Requests in SAP with bin location details.
• SAP users select batches and post transfers (partial quantities allowed): triggering automatic Purchase Receipt Draft creation in ERPNext.
• Upon ERPNext Purchase Receipt submission: SAP updates UDF status from ‘Goods in Transit’ to ‘Delivered,’ maintaining batch traceability.
Sales Operations Workflow
The sales workflow supports both prepayment and COD scenarios with built-in financial controls:
• Mobile App creates draft Sales Orders in ERPNext; submission auto-generates Sales Orders and A/R Downpayment Requests in SAP.
• Prepayment: Incoming Payments auto-create after mobile payment confirmation.
• COD: Incoming Payments auto-create after delivery confirmation.
• ERPNext deliveries with batch selection trigger automatic SAP delivery creation and COD payment processing.
• Sales Invoices in ERPNext auto-create A/R Invoices in SAP with automatic payment adjustment.
Returns Management
A comprehensive returns workflow ensures proper tracking and commission adjustment:
• Mobile users initiate return requests: that create Sales Return Drafts in ERPNext and standalone Return Drafts in SAP.
• SAP approval updates Mobile App status to ‘Approved,’ allowing ERPNext batch entry.
• SAP automatically creates A/R Credit Memos: with appropriate deductions from dark store commissions.
Validation & Data Integrity
Robust validation rules ensure data consistency across all platforms:
• Bi-directional cancellation: Document cancellations in either ERP or SAP automatically cancel in the other system.
• Quantity controls: SAP prevents quantity increases or new line items in sales orders; inventory transfers cannot exceed requested quantities.
• Financial validation: A/R downpayments must equal 100% of order value; quantities, prices, GST, and totals must match across platforms.
• Payment controls: Only UPI, RTGS, and IMPS allowed; cheques prohibited; invoice creation blocked until payment receipt.
Comprehensive Reporting
Five critical reports sync from SAP to ERPNext and Mobile App with item-wise, customer-wise, and batch-wise breakdowns:
• Sales Order Status Report
• Delivery Status Report
• Incoming Payment Report
• Sales Return Report
• General Ledger Report
Key Results & Business Impact
| Metric | Impact |
|---|---|
| Data Accuracy | Achieved 99.9% synchronization accuracy across all platforms with real-time validation |
| Order Processing | Reduced order processing time by 70% through automated workflows |
| Inventory Visibility | Enabled real-time batch-level tracking across all warehouse locations |
| Financial Control | Zero invoice generation without payment confirmation; 100% payment compliance |
| Scalability | Successfully managing multi-state operations with unlimited dark store expansion capability |
| Returns Handling | Automated returns processing with commission adjustment, reducing manual intervention by 85% |
Technical Excellence
• Idempotent API Design: All API calls designed to handle retries without creating duplicate records or data corruption.
• Event-Driven Architecture: Leveraged document events (on_submit, on_cancel, on_update) and scheduler jobs for optimal performance.
• Comprehensive Logging: All API transactions logged for audit trail and troubleshooting.
• Multi-Layer Validation: Implemented validation at Mobile App, ERPNext, and SAP levels to ensure data integrity.
• Batch Traceability: Full end to end batch tracking from warehouse to customer delivery and returns.
Client Testimonial
“The integration has completely transformed our operations. What used to take hours of manual reconciliation now happens instantly and accurately. Our dark stores can focus on serving Kirana stores rather than managing data discrepancies. The solution has enabled us to scale confidently across multiple states while maintaining complete financial control and inventory visibility.“
Conclusion
This project demonstrates the power of thoughtful integration architecture in solving complex multi platform challenges. By establishing clear data ownership, implementing robust validation rules, and leveraging event-driven automation, the solution provides a scalable foundation for future growth.
The success of this ERPNext implementation proves that even highly complex distribution networks can be unified into a seamless, efficient operation through well designed API integration and strong process alignment.
Technologies & Platforms
• SAP Business One (Master Data & Financial Management)
• ERPNext (Dark Store Operations)
• Mobile Application (iOS & Android)
• REST API Integration Framework
• Custom Python API Connectors
• Event Driven Automation (Document Events & Scheduler Jobs)
Ready to Transform Your Distribution Operations?
Contact us to learn how we can create a custom integration solution for your business.
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