Zoho ERP | Product updates | September 2026

Hello users,

A new month, a fresh set of updates in Zoho ERP. This month brings Netting, enhancements across our verticals, and more updates to help streamline your everyday work. Explore this month’s updates and see what’s new.

Introducing Netting

If a customer and vendor are linked, you can now offset their outstanding receivable and payable balances directly through a netting entry, instead of recording separate customer and vendor payments.

Restrict Expenses by Merchant Category Code

You can now automatically flag expenses by restricting merchant category codes. If your organization uses DFI (Direct feed integration), Zoho Expense captures the merchant category code for every card transaction.

Enable Merchant Verification in Policies > Audit. Then go to Settings > Categories under Travel & Expense > Merchant Category Codes > Mark the merchant category codes you'd like to restrict.

Any expense submitted from a restricted merchant category code will automatically trigger an audit violation, helping approvers and admins identify policy breaches without manual review.

Note: This feature is currently available under Early Access. Please reach out to our support team if you’d like to enable it for your organization. This feature is only available for organizations using DFI (Direct feed integration) card feeds.

Change Travel Dates for Itineraries

You can now update travel dates for an itinerary without changing the destination using the Change Datfe option in Trip Details.

To do this, go to Trips under Travel & Expense > open the trip you want to reschedule > Click Change Date under the respective itinerary.

CoCreate Agent for Items, Transfer Orders, and Inventory Adjustments

You can now use CoCreate Agent, Zoho ERP' AI-assisted co-creation capability, for Items, Transfer Orders, and Inventory Adjustments.

GSTR-2B Reconciliation Enhancements

Vendor Filing Insights: You can now check the GSTR-2B reconciliation status of a bill by checking whether the supplier has filed the corresponding invoice in their GSTR-1 return, along with the related return period and vendor filing date. You can view these details without leaving the Bill Details, Record Vendor Payment, or Apply Vendor Credits pages.
Bill of Entry Reconciliation: GSTR-2B Reconciliation in Zoho ERP now supports Bill of Entry transactions. You can reconcile Overseas and SEZ Bill of Entry transactions recorded in Zoho ERP with the corresponding import transaction details available in your GSTR-2B data from the GST Portal.

Manufacturing Orders Updates

Validation Rules, Record Locking, and Related Lists for Manufacturing Order Module

Zoho ERP now supports Validation Rules, Record Locking, and Related Lists in the Manufacturing Order module. You can now temporarily restrict access to transactions using Record Locking. Validation Rules help you ensure data accuracy and consistency. Additionally, you can easily view and manage associated records using Related Lists.

Update Component Consumption Quantity in Manufacturing Orders

You can now record the actual quantity consumed for components when completing a manufacturing order. This helps compare planned and actual material usage, improve inventory accuracy, and track material consumption. The consumed quantity can be updated only when the order is In Progress and all related job cards are completed. It cannot be updated after Quality Checks are initiated. Updating the quantity also updates component inventory, applies unit conversions, and validates serial and batch details.

Auto-Generate Batch Numbers and Auto Batch Assignment Strategy Support for Manufacturing Order

Zoho ERP now supports automatic batch number generation for finished goods and automatic batch assignment for manufacturing components. Batch numbers can be generated based on the configured batch format, while components can be assigned batches automatically using allocation strategies such as FIFO, FEFO, or LIFO. This reduces manual effort and improves traceability and consistency across manufacturing processes.

Note: This feature is available in the Premium and Custom plans of Zoho ERP.

In-Transit Quantity Breakdown & Tooltip

The Manufacturing Order component table now displays the total in-transit quantity based on the enabled transaction types. When the Transfer Orders module is enabled, the in-transit quantity includes quantities from both purchase orders and transfer orders. When it is disabled, only the purchase order quantity is included. You can hover over the in-transit quantity to view a tooltip with a detailed breakdown of the Purchase Order Qty and Transfer Order Qty.

Quality Updates

Quality Control for Transfer Order Receives

You can now create quality rules for transfer order receives. Create a quality rule and select Transfer Receive as the transaction type. You can also associate an item and the quality template with this quality rule.

Quality inspections are created based on your quality rules when the transfer receive is marked as received. You can view the generated inspections in the Quality Inspections section on the Transfer Receive details page. Each inspection shows the quality rule, inspection number, item, and status. The receive and its line items also show the quality inspection status, such as Pending or Passed. When the inspection is Passed, the receive shows Quality Inspection as Completed.

To create a quality rule for transfer order receive, go to Quality > Quality Rules and create a new quality rule. Select Transfer Receive as the transaction type.

To view inspections on a transfer receive, go to the Transfer Receive details page and open the Quality Inspections section.

Fixed Quantity for Sample Size and Allowable Failures

You can configure Sample Size and Allowable Failures as Percentage or Fixed Quantity. In Simple mode, set these values in the Quality Rule. In Advanced mode, set them in the Quality Template. Associated Quality Rules use the values from the template.

For Fixed Quantity, the system inspects the configured sample size when the transaction quantity is equal to or greater than that value. If the transaction quantity is lower, the entire transaction quantity is inspected. The Allowable Failures are calculated based on the Sample Size and cannot exceed the Sample Size.

Note: If Allowable Failures are capped to the Sample Size, the inspection will not fail based on the allowable failures check.

To set fixed quantity, go to Quality > Quality Rules (simple mode) and create a new quality rule. Select Fixed Quantity from the sample size and allowable failures dropdown. Go to Quality Templates if your organization is in the advanced mode.

Re-Evaluate Completed Quality Inspections

You can re-evaluate completed Quality Inspections and Inspection Worklists. When you re-evaluate, the Passed or Failed records move back to In Progress. In Simple mode, you can re-evaluate the quality inspections whereas in Advanced mode, you can re-evaluate the inspection worklists.You can then edit and resubmit the results.

Admins and Quality Managers can start a re-evaluation. A reason is required. The details page shows a Re-Evaluation banner with the reason. List views show a Re-Evaluated indicator.

To re-evaluate a quality inspection, go to Quality > Quality Inspections > Open a completed inspection > Click Re-Evaluate at the top of the details page.

Cancel Quality Inspections and Inspection Worklists

You can now cancel Quality Inspections and Inspection Worklists. To cancel, you'll need to enter a reason. Canceling a quality inspection also cancels all inspection worklists associated with it. A cancelled inspection cannot be retrieved. You can cancel an individual inspection worklist without canceling the entire quality inspection. You cannot make further validation on the cancelled worklist.

To cancel a quality inspection, go to Quality > Quality Inspections > Open the required inspection > Click Cancel at the top of the details page.

Import and Export Quality Rules and Templates

You can import and export quality rules and quality templates in the Quality module and add quality configurations using CSV files. Export the existing records for backup, review, or reuse across organizations. Import and Export option is available as separate actions under More Actions on the Quality Templates list and on the Quality Rules list.

To import or export Quality Templates, go to Quality > Quality Templates > Click the More icon > Select Import or Export.

Download and Print Quality Inspections

You can now download a Quality Inspection as a PDF or print it. Open an inspection from Quality Inspections and use the PDF/Print action on the details page. The dropdown includes separate PDF and Print options.

To download or print a Quality Inspection, go to Quality > Quality Inspections, open the inspection, and select PDF or Print from the PDF/Print dropdown.

Distribution Updates

Beat — Zoho ERP iOS App Updates

The home page now opens to a beats overview showing the total, sales, and delivery beats counts, and a list of beats.
Delivery runs are now supported, letting delivery agents view their delivery beats, their shipments, and mark shipments as delivered.
Delivery agents can now submit proof of delivery for delivery beats.
Beats that were previously ended can now be restarted.

Beat — Zoho ERP Android App Updates

You can now create quotes in sales beats.
Beats that were previously ended can now be restarted.

Other Feature Enhancements

You can now make HSN/SAC mandatory for taxable items and validate whether the entered code matches the goods or service type when creating or editing an item or transaction. To set these preferences, go to Settings > General > Items > Preferences > HSN Code or SAC, and check the options Make HSN/SAC mandatory while creating or updating a taxable item and Validate HSN/SAC.
You can now search for HSN/SAC codes when creating an item or transaction and get matching suggestions, helping you select the correct code and avoid GST portal validation errors.
You can now display Chart of Accounts custom fields as columns in the Trial Balance report.
You can now include child locations when applying location filters in the Trial Balance and Balance Sheet reports.
You can now create custom fields and validation rules for bank deposits.
Purchase Receives now support record locking at two levels. You can allow or restrict actions such as Edit, Delete, Mark as In Transit, and Mark as Received, as well as individual fields such as Tracking Number and Quantity Received.
You can now manage vendor payments through a unified flow when payment approval is enabled. Payment details are entered first and submitted for approval, after which any user with an active bank integration can initiate the online payment, while offline payments can be recorded using Mark as Paid.
You can now import your Default Preferred Bin preference for items in bulk.
You can now add custom fields to Move Orders, Bin Locations and Zones within your warehouses.
Inventory Adjustments now support item-level custom fields, validation rules, and record locking for edit and delete actions.
Transfer Orders now support validation rules and record locking for edit and delete actions.
You can now attach files to Sales Returns from both the creation and details pages.
You can now share Purchase Orders with vendors through a public shareable link, without requiring Vendor Portal access. Vendors can view, download, accept, or decline Purchase Orders directly from the link, including when the Purchase Order is shared via email.
You can now set a default Landed Cost Allocation Method. To set it, go to Settings > General > Items > Preferences > Default Landed Cost Allocation Method and select the required Allocation Method.
When exporting Inventory Adjustments, you can now include bin location details in the export file.
Advanced Search is now available for Transaction Rules in the Banking module.
A new Age column has been added under the Product In section of the FIFO Cost Lot Tracking report, showing how long each lot of stock has been held based on the date it was received.
You can customize the Inventory Aging Summary report and enable the Do not include Transfer Order option to retain the stock's original stock-in date even after it is moved between locations, instead of using the Transfer Order date.
Advanced filters in the Order Fulfillment By Item report now support sales order number, Customer Name, and Sales Order custom fields.
If bill reconciliation is enabled for your organization, you can now set the bill reconciliation preference for each item in your organization. You can choose from no reconciliation, two-way matching, and three-way matching.
You can now change the unit of measurement for items in purchase requests and request for quotes.

That's a wrap for this month's updates! We hope these new features and enhancements make your Zoho ERP experience even more powerful and productive. We're constantly working to refine and expand the platform based on your needs, and we're excited to share even more improvements with you in the coming months.

Be sure to check out our What’s New timeline for a complete view of the latest updates and enhancements. Until then, happy exploring!

Best regards,

The Zoho ERP Team