Stock Settings
Stock Settings allow you to configure default behaviors for inventory management, stock transactions, valuation methods, material requests, warehouse transfers, and other stock-related operations in ERPNext. These settings help standardize inventory processes across your organization and reduce manual effort.
To access Stock Settings, navigate to:
Home > Stock > Settings > Stock Settings
1. Item Naming
Configure how ERPNext generates the unique identifier for newly created Items.
- Item Code – Uses the entered Item Code as the document name.
- Naming Series – Generates sequential Item Codes such as ITEM-.00001.
If your organization follows standardized item numbering, selecting Naming Series ensures every new Item follows the same numbering convention automatically.
2. Default Settings
These settings define default values used while creating new Items.
- Default Item Group – Automatically assigns an Item Group to new Items.
- Default Stock UOM – Sets the default Stock Unit of Measure (for example, Nos, Kg, or Box).
- Default Warehouse – Specifies the warehouse automatically selected in new Items.
- Sample Retention Warehouse – Warehouse used for retaining quality control samples.
- Default Valuation Method – Select the inventory valuation method for newly created Items:
- FIFO (First In, First Out)
- LIFO (Last In, First Out)
- Moving Average
The valuation method applies only to newly created Items. Once an Item is saved, its valuation method cannot be changed.
3. Over Delivery and Over Receipt
Configure how much additional quantity users can receive or deliver beyond the ordered quantity.
- Limit Percent – Maximum percentage allowed above the ordered quantity.
- Role Allowed to Over Deliver/Receive – Users with this role can exceed the configured allowance.
If an order quantity is 100 units and the limit percentage is 10%, users can receive or deliver up to 110 units.
4. Item Management Options
- Show Barcode Field – Displays the Barcode field in the Item master.
- Convert Item Description to Clean HTML – Removes unnecessary formatting from copied item descriptions to improve document printing.
5. Automatic Price and Serial Number Management
- Auto Insert Price List Rate if Missing – Automatically creates an Item Price from the first purchase or sales transaction if one does not already exist.
- Automatically Set Serial Nos Based on FIFO – Automatically assigns available serial numbers using the FIFO method during stock transactions.
6. Allow Negative Stock
When enabled, ERPNext allows stock quantities to become negative until stock is received later.
From ERPNext Version 15 onwards, negative stock is not allowed for Serialised and Batched Items, even if this option is enabled.
7. Quantity Based on Serial Numbers
Enable Set Qty in Transactions based on Serial No Input to automatically calculate the quantity from the number of entered serial numbers.
If you enter serial numbers:
- A001
- A002
- A003
ERPNext automatically sets the quantity to 3.
8. Automatic Material Requests
These settings help automate procurement when inventory reaches the reorder level.
- Raise Material Request when Stock Reaches Re-order Level – Automatically creates Material Requests for Items whose stock falls below their reorder quantity.
- Notify by Email on Creation of Automatic Material Request – Sends an email notification to users with the Purchase Manager role whenever an automatic Material Request is created.
9. Inter Warehouse Transfer Settings
Configure warehouse transfers through sales and purchase transactions.
- Enable Customer Warehouse for Material Transfer from Delivery Note and Sales Invoice – Allows customer warehouses to participate in material transfers.
- Enable Supplier Warehouse for Material Transfer from Purchase Receipt and Purchase Invoice – Allows supplier warehouses during purchase-related material transfers.
10. Freeze Stock Entries
Prevent users from posting stock transactions before a specified date or age.
- Stock Frozen Upto – Blocks stock postings before the selected date.
- Freeze Stocks Older Than (Days) – Prevents modifications to older stock entries.
- Role Allowed to Edit Frozen Stock – Users with this role can modify frozen stock transactions.
11. Batch Identification
Configure the default naming method used for Batch records. You can generate Batch numbers using a Naming Series and override this behavior for individual Items if required.
12. Editing Stock Quantity
ERPNext provides additional flexibility for organizations using multiple Units of Measure (UOMs).
- Allow to Edit Stock UOM Qty for Sales Documents
- Allow to Edit Stock UOM Qty for Purchase Documents
- Allow to Edit Qty as per Stock UOM in Stock Entry
When working with multiple UOMs, users may find it difficult to determine the exact conversion factor. Enabling these options allows users to enter the stock quantity directly, and ERPNext automatically calculates the required conversion factor.
13. Restrict UOM Selection
Enable Allow UOM with Conversion Rate Defined in Item to restrict users from selecting Units of Measure that do not have a conversion factor defined in the Item master.
When enabled, only UOMs configured in the Item’s UOM Conversion table can be selected in purchase and sales transactions.
Summary
Stock Settings centralize the configuration of inventory management in ERPNext. By defining default item properties, valuation methods, stock controls, automatic procurement rules, warehouse transfer behavior, and quantity validation options, organizations can standardize inventory operations and improve stock accuracy across all transactions.
