Project Name
How Ksolves Implemented ERPNext for Simplified Multi-Company and Multi-Currency Accounting
A network of specialty and Ayurvedic hospitals operating across multiple cities and regions faced increasing financial and operational complexity. Each hospital functioned as a separate legal entity, managing its own IPD, OPD, pharmacy sales, and inventory. The hospitals required a robust ERP system to handle multi-company accounting, intercompany transactions, and multi-currency management, while automating hospital-specific workflows such as patient billing, pharmacy inventory, and service management. ERPNext was chosen to unify all hospitals under a centralized and automated financial ecosystem, ensuring accurate reporting and operational efficiency.
A few major challenges encountered by our client that led to operational inefficiencies were:
- Fragmented Multi-Entity Financials: Each hospital maintained separate ledgers, charts of accounts, and fiscal calendars, making consolidated reporting time-consuming and error-prone.
- IPD & OPD Billing Complexity: Handling inpatient (IPD) and outpatient (OPD) billing across multiple hospitals in different currencies required frequent reconciliation and manual intervention.
- Pharmacy & Inventory Management Issues: Inter-hospital transfers of medicines and consumables were manually tracked, causing stock discrepancies and inaccurate costing.
- Intercompany Transactions & Service Management: Frequent inter-hospital service charges, lab tests, and pharmacy transfers led to mismatched ledgers and delayed reconciliation.
- Multi-Currency and Revaluation Requirements: Transactions in INR, USD, and EUR needed automated currency conversion, revaluation, and reporting to maintain compliance and accurate financial statements.
- Fiscal Year Misalignment: Different hospitals followed varying fiscal year calendars, complicating consolidated reporting and cross-entity comparisons.
With our expertise in offering ERPNext implementation services, we designed a comprehensive and automated setup to address every layer of complexity across entities and currencies.
- Multi-Company Setup: Each hospital was configured as a separate company in ERPNext with distinct charts of accounts, cost centers, tax rules, and fiscal calendars, while enabling centralized oversight.
- Intercompany Automation: ERPNext’s Inter Company Transactions feature was configured to automate inter-hospital service and pharmacy transfers, with reciprocal journals ensuring balanced ledgers and reduced reconciliation errors.
- IPD, OPD, and Service Management: Custom workflows were implemented for patient admissions, OPD visits, lab services, and pharmacy sales, fully integrating service charges with financial entries for accurate revenue tracking.
- Pharmacy & Inventory Automation: Real-time inventory management was enabled across hospitals, including stock transfers, batch tracking, expiry management, and inter-hospital pharmacy reconciliations.
- Multi-Currency Management & Revaluation: Integrated real-time currency feeds and automated periodic revaluation scripts ensured accurate multi-currency financial reporting across hospitals.
- Consolidated Reporting & Elimination Entries: ERPNext’s group consolidation tools were configured to generate accurate P&L, balance sheets, and trial balances, with automated elimination entries for inter-hospital transactions.
- 100% Automated Intercompany Transactions: Inter-hospital service, lab, and pharmacy transfers are automatically reconciled, reducing human error.
- 50% Faster Financial Close Cycles: Automated consolidation and elimination of entries significantly cut monthly and yearly closing times.
- 99.9% Accurate Multi-Currency Reporting: Currency revaluation automation ensured compliant and precise financial statements.
- 1 Unified ERP Platform for All Hospitals: All hospitals now operate on a single ERPNext instance, improving visibility and control.
- 360° Operational & Financial Visibility: Consolidated dashboards provide real-time insights into IPD/OPD revenue, pharmacy inventory, and intercompany performance.
By implementing ERPNext for multi-company, multi-currency, and inter-hospital transaction management, the network of specialty and Ayurvedic hospitals transformed their financial and operational workflows. Automated IPD, OPD, and pharmacy processes reduced errors, improved efficiency, and ensured accurate, real-time consolidated reporting.
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