Stock Entry
The movement of inventory items between warehouses or during different internal processes like manufacturing, repackaging, or subcontracting is documented using a stock entry.
To access the Stock Entry list, go to:
Stock Entry Purpose Types:` There must be a purpose for every stock entry. The ERPNext v15 supported purposes are listed below:
1. Material Issue
Used for internal use, scrap, donations, or sending outside the company when items are out of stock.
Source Warehouse is mandatory.
Reduces stock quantity.
2. Material Receipt
Used for production, donations, opening stock, and other situations where new items are received without a purchase receipt.
Target Warehouse is mandatory.
Increases stock quantity.
3. Transfer of Materials
Used to transport goods from one internal warehouse to another (for example, from the Main Store to the Retail Store).
It is necessary to have both Source and Target Warehouses.
4. Manufacturing Material Transfer
Based on a work order or job card, moves raw materials to the work-in-progress (WIP) warehouse for manufacturing.
Linked to Bill of Materials (BoM).
Optional setting: Allow Perpetual Inventory.
5. Material Consumption for Manufacturing
Documents raw material consumption in relation to a work order.
From the WIP Warehouse, items are subtracted.
Can be produced manually or automatically.
6. Manufacture
Final entry for the production of finished goods into stock.
The Target Warehouse receives finished goods.
If necessary, raw materials may also be consumed in the same entry.
Utilised when production takes place without a complete Work Order procedure.
7. Repack
Used to repackage or repackage products into new SKUs.
For instance, dividing a 12-bottle pack into separate bottles.
Requires both the source and the target items.
8. Send to subcontractor
Used to forward raw materials for processing to a vendor or subcontractor.
Connected to a purchase order that has subcontracting turned on.
Creates a stock entry automatically to move items to the supplier warehouse.
1. Prerequisites
Make sure the following records are established before generating a stock entry:
Warehouse (There must be a minimum of one Source and/or Target Warehouse)
Item (the item needs to be marked as "Stock Item" and be in use)
2. How to create a Stock Entry
Stock Entries may be made manually, by automated route (e.g. through Work Orders, Subcontracting, etc.).
1. Go to: Inventory > Inventory Receipts > Inventory Receipt
2. Click: New
3. Set:
Purpose of a Stock Entry (e.g. Material Receipt, Material Transfer, etc.)
The ERPNext will customize all fields such as Source-Warehouse or Target-Warehouse according to the purpose being chosen.
4. Warehouses:
In case one of the Source Warehouses or Target Warehouses has been specified at the header level, it will be auto-filled in the Items table.
Where necessary you can override warehouse values on a row by row basis.
5. Add Items:
Chosen Item Code
Enter Quantity
The Basic Rate (valuation rate) will be auto-fetched by the system but you may change it by hand, in case you need to (depending on the purpose and item settings)
6. Additional Fields:
Products on a per batch/serial basis should have the Batch/Serial Numbers entered.
You will also be able to fill in Cost Center, Additional Notes and Reference No/DocType
7. Stock Entry Save And Submit
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2.1 Additional Options When Creating a Stock Entry
1. Work Order
Appears only if the Purpose is:
Manufacture
Material Transfer for Manufacture
Material Consumption for Manufacture
2. Edit Posting Date and Time
- Useful when recording entries after the actual stock movement.
3. Inspection Required
- When checked, it means a Quality Inspection document must be submitted before the stock entry can be submitted.
Mostly used for:
Incoming stock (Material Receipt)
Manufactured stock
Ensures that quality checks are done before updating warehouse stock.
4. From BOM (Bill of Materials)
Appears only when:
- Purpose is Manufacture
5. Scan Barcode (Quick Entry)
- Built-in barcode scanner support for Stock Entry Items table.
3. Features
3.1 Items Table
The Items table in a Stock Entry displays key information such as:
Item Code, Quantity, Basic Rate (Valuation Rate), Serial/Batches (if applicable), Source and Target Warehouses
You can configure different warehouses for each item line if needed.
Allow Zero Valuation Rate
If enabled, the system allows submitting the Stock Entry even if the Valuation Rate = 0.
3.2 Loss of Scrap and Process
Scrap Item
Scrap Item By-products produced during the manufacturing process are referred to as scrap.
These goods are usually transferred to a scrap warehouse and may have a valuation rate.
The Basic Rate field in the Stock Entry can be used to manually define the scrap item valuation rate.
Apart from finished goods, scrap is regarded as a valuable output.
Process Loss
Process Loss The unrecoverable loss that takes place during manufacturing is referred to as process loss.
This affects the quantity of finished goods (FG) but does not produce a distinct stock item.
For instance, ERPNext automatically determines the remaining 20 units as Process Loss Qty if you intend to produce 100 units but only 80 are produced because of waste.
The value of the 80 completed units is increased by the cost of the 20 lost units.
3.3 Accounting Dimensions
ERPNext allows you to tag Stock Entries with Accounting Dimensions to enable more detailed financial tracking and reporting.
You can assign dimensions such as:
Project
Cost Center
Department
3.4 Printing Settings
ERPNext gives you the options of customizing the way Stock Entries and other documents should be printed.
Letterhead
It is possible to print the Stock Entry (as well as any other document) on the official letterhead of your company.
The letterheads may be designed and posted through: Home > Publishing > Page and Label Designs > Letters > Letterhead
It would be helpful in terms of maintaining professional documentation standards.
Print Heading
ERPNext can enable you to modify the heading/header of the printed document.
You can, say replace the term Stock Entry with Goods Transfer Note or Scrap Movement so that it becomes Goods Transfer Note (printed) or Scrap Movement (printed).
In order to do Print Headings: Choose Home - Settings - Printing - Print Heading
3.5 Additional Details
These are also other fields that can be used in the Stock Entry form to enhance clarity and stem:
Is Opening
Activate it in case you are recording opening stock balances.
Applied in previous implementation or in the beginning of the new financial year.
Remarks
- A free-text box to add extra notes, directions or internal message regarding the Stock Entry.
Percentage Transferred
It can be used in manufacturing entry or transfer entries.
Indicates the percentage of the amount planned that has been transferred (particular where partial transfers may occur against a Work Order).
Total Amount
Shows the amount of the stock items in total in the entry.
The basic rate of each item is calculated by multiplying the Qty and calculated summed up.
3.6 Perpetual Inventory
If your company is using the Perpetual Inventory system in ERPNext, then stock transactions will have a direct impact on accounting.
3.7 After Submission
After a Stock Entry is entered in ERPNext, the system will update relative stock and financial records depending on the nature of transaction.
Post-Submission Actions:
Similar records may be viewed by either Dashboard or Links section of Stock Entry form:
Stock Ledger – depicts a movement of quantity and valuation.
General Ledger (GL) - displays accounting effect (only when Perpetual Inventory is turned ON).
Serial No. / Batch records- where applicable.
Linked Work Order / Purchase Order - in case of the entry association.
4. How to Update a Stock Entry
Once a Stock Entry is submitted, you can't edit it directly. To update it:
Go to: Stock ➝ Stock Transactions ➝ Stock Entry
Open the submitted Stock Entry you want to update.
Click Cancel (top-right).
After canceling, click Amend. → This creates a new draft entry with the same data.
Make your changes and submit the amended entry.