Stock Entry

A Stock Entry is used to record the movement of items between warehouses or to adjust inventory within the system. It is a flexible document that supports multiple stock operations including transfers, receipts, issues, and manufacturing processes.

Stock Entries ensure that every physical movement of goods is accurately reflected in ERPNext’s stock ledger, maintaining real-time inventory accuracy and valuation consistency.

To access Stock Entries, go to:

Home > Stock > Stock Transactions > Stock Entry

1. Stock Entry Purpose Types

Stock Entry behavior depends on the selected purpose. Each type defines how stock is added, removed, or transferred between warehouses and processes.

• Material Issue — Used when items are issued out of the warehouse for internal use or external dispatch. Stock is reduced from the Source Warehouse.
• Material Receipt — Used when goods are received into the company. Stock is added to the Target Warehouse and valued based on item rate or additional costs.
• Material Transfer — Used to move stock between internal warehouses without affecting overall inventory quantity, only location changes.
• Material Transfer for Manufacturing — Used to send raw materials to production areas or Work Orders. It ensures materials are reserved and consumed against manufacturing processes.
• Material Consumption for Manufacture — Records actual consumption of raw materials during production, especially when multiple consumption entries are needed against a single Work Order.
• Manufacture — Used when finished goods are produced from raw materials. It increases finished goods stock and reduces raw materials simultaneously.
• Repack — Used when items are converted into different units or bundled into new stock items without changing overall value significantly.
• Send to Subcontractor — Used when raw materials are issued to an external vendor for subcontracted production work.

2. Prerequisites

Before creating a Stock Entry, the system should have basic master data configured to ensure proper tracking and valuation.

• Warehouse — Defines where stock is stored or moved to/from.
• Item — Defines the product being moved, including valuation, UOM, and stock settings.

3. How to Create a Stock Entry

3.1 Standard Creation Flow

Stock Entries for manufacturing are typically created automatically from Work Orders. However, they can also be created manually for transfers, issues, or receipts.

• Go to Stock Entry list and click New.
• Select the appropriate Stock Entry Purpose based on the operation.
• If default warehouses are configured, they are auto-filled for faster entry.
• Select items and enter required quantities.
• System automatically fetches basic rate and calculates total amount.
• Save and submit to post stock ledger updates.

3.2 Additional Options

• Work Order — Links the Stock Entry to a manufacturing order for traceability.
• Edit Posting Date & Time — Allows backdated or future-dated stock movement entries (subject to validation rules).
• Inspection Required — Ensures Quality Inspection is completed before submission.
• From BOM — Automatically fetches raw materials defined in the Bill of Materials.

4. Stock Entry Types

Stock Entry Types allow businesses to customize naming for specific operations without changing the underlying purpose.

For example, a “Scrap Entry” may still function as a Material Transfer but is restricted to specific user roles for better control and clarity.

5. Items Table

The Items table defines what is being moved, including quantities, valuation, and warehouse details for each line item.

• Basic Rate — Automatically fetched based on valuation method or purchase data, used to calculate stock value.
• Allow Zero Valuation Rate — Allows submission even when item valuation is zero, typically used for samples or special cases.
• Source & Target Warehouses — Can be set per item, enabling complex multi-warehouse movements in one entry.

6. Scrap and Process Loss

6.1 Scrap Items

Scrap items are by-products generated during production. They are treated as valid inventory items and are added to a designated scrap warehouse with their own valuation rate.

6.2 Process Loss

Process loss represents materials that are consumed during production but do not result in finished goods. This quantity is not physically stored but is accounted for in production costing.

For example, if 100 units are planned but only 80 are produced, the remaining 20 units are recorded as process loss and their cost is absorbed into produced items.

7. Additional Costs

Additional costs such as freight, customs duty, or handling charges can be added to incoming stock entries to adjust final inventory valuation.

• Enter expense account for cost tracking
• Add description and amount per cost line

These costs are distributed across received items based on their proportionate value, increasing their final valuation rate.

8. Accounting Dimensions

Accounting Dimensions allow tagging stock movements with analytical categories such as Projects or Cost Centers. This helps track profitability and cost allocation across business segments.

9. More Information

• Is Opening — Marks entry as opening stock for system initialization
• Remarks — Additional notes for reference or audit purposes
• Percentage Transferred — Shows progress of stock movement in processes like manufacturing
• Total Amount — Total valuation of items moved in the entry

10. Perpetual Inventory Impact

When perpetual inventory is enabled, every Stock Entry immediately updates both the Stock Ledger and General Ledger, ensuring real-time financial accuracy.

Additional costs are also automatically capitalized into inventory valuation when applicable.

11. Add to Transit

The Add to Transit feature is used for multi-step warehouse transfers where goods move through an intermediate transit warehouse before reaching the final destination.

• Create Material Transfer Stock Entry and enable Add to Transit
• Select source warehouse and transit warehouse
• Create a second entry to complete transfer to destination warehouse

This ensures accurate tracking of goods during transportation between locations.

12. After Submission

Once submitted, Stock Ledger Entries are created automatically and inventory quantities are updated in real time.

• Stock is adjusted in Source/Target Warehouses
• Valuation is updated based on entry type
• Manufacturing and accounting entries are updated if applicable

13. Related Topics

• Stock Reconciliation
• Work Order
• Job Card
• Production Plan
• Bill of Materials
• Warehouse Management