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⚡ Setup ERPNext — Free Open-Source ERP on Ubuntu

Deploy ERPNext on Ubuntu 22.04 or 24.04 using Docker — a 100% free, fully open-source ERP covering accounting, inventory, HR, CRM, manufacturing, and more, built on the Frappe Framework with no paid tiers.

⚠️ This script is provided for demo and testing purposes only. Not intended for production use.

📦 Resources & Setup Scripts

Grab the automated bash script from GitHub to follow along with the video.

Automated install script — Docker eliminates the complex Frappe Bench setup.
View on GitHub

Quick Install:

wget https://raw.githubusercontent.com/mhmdali94/Docker/main/erp/erpnext/erpnext-ubuntu.sh
chmod +x erpnext-ubuntu.sh
sudo bash erpnext-ubuntu.sh

Tutorial Steps

1 Download the Script

wget https://raw.githubusercontent.com/mhmdali94/Docker/main/erp/erpnext/erpnext-ubuntu.sh

2 Make it Executable

chmod +x erpnext-ubuntu.sh

3 Run the Installer

The script installs Docker if needed and deploys the full ERPNext stack (Frappe, MariaDB, Redis, and Nginx) using the official Docker Compose setup. First start may take 3–5 minutes as images download.

sudo bash erpnext-ubuntu.sh

4 Access the Web UI

Open your browser and navigate to:

http://<your-server-ip>

5 Complete the Setup Wizard

Log in with the default credentials (admin / admin) and immediately change your password. The setup wizard walks you through your company name, currency, fiscal year, and which modules to activate. Enable only the modules your business needs — you can always install more later from the Apps section.

Ports Used

PortPurpose
80ERPNext Web UI (via Nginx inside Docker)
443HTTPS (via reverse proxy)
3306MariaDB — internal only, not exposed
6379Redis — internal only, not exposed

Overview

ERPNext is a fully open-source, no-paid-tier ERP system built on the Frappe Framework — a Python and JavaScript application framework with a built-in ORM, REST API, and web server. It covers the complete business back-office: accounting (double-entry, multi-currency, GST/VAT), inventory and warehouse management, manufacturing (BOM, work orders, quality), HR and payroll, CRM, procurement, POS, project management, and a website/e-commerce module. ERPNext is the only major ERP where every single feature is available to every user — there is no Community vs Enterprise split, no feature gating, and no per-module licensing. The Docker deployment makes it practical to self-host without wrestling with the traditionally complex Frappe Bench setup process.

Why Use It

SAP, Oracle NetSuite, and Microsoft Dynamics cost tens of thousands of dollars per year and require implementation partners. ERPNext delivers enterprise-grade double-entry accounting, multi-warehouse inventory, payroll, and manufacturing planning at zero software cost. Every module is included — you never hit a paywall. The Frappe Framework gives ERPNext a flexible document-based data model where adding a custom field to any document takes seconds through the UI, not a developer sprint. For businesses in the MENA region, ERPNext ships with Arabic language support, RTL layouts, and regional accounting localizations. It is also the ERP of choice for Frappe Cloud (the official SaaS), which means the Docker community image is actively maintained and used in production by thousands of companies worldwide.

When You Need It

    Who Should Use It

      Real Use Cases

        Main Features

          How to Use After Installation

            Security Best Practices

              Ports and Firewall Notes

              ERPNext only needs port 80 (HTTP) or 443 (HTTPS via reverse proxy) exposed to users. MariaDB runs on port 3306 and Redis on port 6379 — both must stay on the internal Docker network and must never be exposed to the internet. If you use the Frappe Socketio server for real-time features, it communicates internally and does not need a separate public port. Configure ufw allow 80 and ufw allow 443, then ufw deny everything else. For production, put ERPNext behind a domain with Let's Encrypt SSL via Nginx Proxy Manager.

              Backup and Maintenance

                Common Mistakes

                  Troubleshooting

                    Alternatives

                    Odoo Community Edition covers similar ground but has a Community vs Enterprise split — many useful modules (accounting reports, maintenance) are locked behind the paid Enterprise tier. ERPNext has no such split. Dolibarr is simpler and lighter but lacks manufacturing and payroll depth. Akaunting covers accounting only. iDempiere is a mature Java-based ERP but has a steeper learning curve and dated UI. For businesses that need SaaS and do not want to self-host, Frappe Cloud offers hosted ERPNext with managed updates.

                    When Not to Use It

                    ERPNext is not suitable for a business that just needs invoicing or a simple CRM — the setup overhead is significant and the system shines only when multiple modules work together. If you only need accounting, Akaunting or even a cloud accounting tool may be simpler. ERPNext also requires at least 4 GB RAM (8 GB recommended for smooth operation with multiple users) — do not run it on a 1–2 GB VPS. If your team cannot commit to learning a new ERP system, the initial data migration and training investment will be wasted. Finally, if you need extensive e-commerce with a modern storefront, a dedicated Shopify or WooCommerce setup will outperform ERPNext's built-in webshop module.

                    PrismaTechWork Professional Help

                    PrismaTechWork provides end-to-end infrastructure services — from initial deployment and security hardening to ongoing monitoring, automated backups, and dedicated support. Whether you need a single-server setup or a multi-site network, our team ensures your infrastructure is built right, secured properly, and maintained reliably.

                      Contact Us

                      Frequently Asked Questions

                      Is ERPNext completely free? Are there any paid tiers?

                      Yes — ERPNext is 100% open-source under the GNU GPLv3 license with absolutely no paid tiers or feature gating. Every module (accounting, manufacturing, HR, POS, e-commerce) is included in the community edition. The only paid offering is Frappe Cloud, the official managed hosting service — but self-hosting is entirely free.

                      What is the difference between Frappe and ERPNext?

                      Frappe is the underlying web framework (Python backend + JavaScript frontend) that provides the database ORM, REST API, authentication, and form-building engine. ERPNext is the business application built on top of Frappe — it adds all the ERP modules. You need Frappe to run ERPNext, but Frappe can also run other applications independently.

                      How much RAM does ERPNext need?

                      Minimum is 4 GB RAM for a single-user test environment, but 8 GB RAM is recommended for production with multiple concurrent users. ERPNext runs several processes (web workers, background workers, scheduler, MariaDB, Redis) that each consume meaningful memory. On 2 GB RAM, the system will swap heavily and become unusable under load.

                      Does ERPNext support Arabic and Middle East accounting (VAT)?

                      Yes — ERPNext has full Arabic language support with RTL layout. It also ships with country-specific Chart of Accounts and tax templates for Saudi Arabia (ZATCA-compliant VAT), UAE, Egypt, and other MENA countries. The invoice print formats can be configured to show Arabic and English side by side for bilingual invoicing.

                      Can ERPNext handle multiple companies and currencies?

                      Yes — ERPNext supports multi-company setups where each company has its own chart of accounts, fiscal year, and currency. Inter-company transactions (loans, shared expenses) are handled through inter-company journal entries. Multi-currency invoicing with automatic exchange rate fetching is also included.

                      How do I add a custom field or module to ERPNext?

                      For custom fields: go to Settings → Customize Form, select the DocType (document type) you want to modify, and add a field — no code required. For entirely new document types (custom modules), use the DocType Builder in Settings → DocType. For complex custom apps, use the Frappe Framework's bench new-app command to create a separate installable application.

                      How do I upgrade ERPNext to a newer version?

                      With Docker: update the image tag in your docker-compose.yml to the new version, pull the new image (docker compose pull), then run docker compose up -d. ERPNext will automatically run database migrations on startup. Always back up before upgrading and read the version release notes — major version upgrades (v15 → v16) may have breaking changes.

                      Can ERPNext be used for manufacturing?

                      Yes — ERPNext has one of the most complete open-source manufacturing modules available. It supports Bill of Materials (multi-level BOM), work orders, production planning, raw material consumption tracking, quality inspection at each production stage, subcontracting, and job cards for shop floor tracking. It integrates directly with inventory so materials are automatically deducted when a work order is completed.