What ERPNext and Frappe are, and what the GPL means for users

When you look into M&C ERP you will meet two names: ERPNext and Frappe. This article explains what they are and what their licences mean for a company that uses the software.

ERPNext and Frappe

• Frappe is a framework for building business web applications: it handles data, screens, user permissions and print formats. Frappe is licensed under MIT.
• ERPNext is a full ERP built on Frappe: sales, purchasing, stock, accounting and more. ERPNext is licensed under GPL version 3 (GPL-3.0).

Both are developed by Frappe Technologies, and the source code of both is public on GitHub (see the sources at the end). ERPNext and Frappe are trademarks of Frappe Technologies.

M&C ERP is built on ERPNext: it uses ERPNext as its base and adds features for import and sales work (import shipments, customs declarations, landed costs, Japanese print formats). M&C ERP is not an official product of Frappe Technologies.

What open source means here

Because the source code is public:

• anyone can read what the software does;
• anyone can download, install and use it, with no licence fee per user;
• anyone can run the software on their own server or with another provider, so you are not tied to a single supplier.

Who holds the data is a separate matter that depends on how the system is run. If you run it yourself, the data is on your server; if someone else runs it, confirm that you have the right to receive a full backup.

“No licence fee” does not mean “no cost”: servers, installation, maintenance and people’s time still cost money.

What the GPL means for users

The conditions of the GPL are mainly about distributing the software: if you give a copy of ERPNext (including a modified one) to someone else, you must also give them the source code under the same GPL.

For a company that only uses ERPNext for itself, these conditions usually have little effect on day-to-day use. Questions worth asking your implementer:

• Which parts are ERPNext itself, and which were added for your company?
• Do you receive the source code of the added parts? Parts built on ERPNext are derivative works, so when they are distributed they generally have to be under GPL-3.0 as well.
• If you change implementer, can you take both your data and the added parts with you?

This article is a general explanation, not legal advice. If your company plans to distribute software, or has specific licence questions, ask a qualified professional and read the licence text itself.