Stock Closing Entry

Stock Closing Entry

The closing stock value and quantity for a desired time span are entered through ERPNext's Stock Closing Entry (v16+). It comes in handy for making reports more effective and faster related to stocks.

It eliminates the necessity to repeatedly calculate stock balances from the Stock Ledger by acting as a snapshot of your inventory at a given point in time.

1. To create a Stock Closing Entry:

  1. Go to:

    Stock → Tools → Stock Closing Entry

  2. Click New.

  3. Select:

    • Company

    • Start and End Dates of the Period (could be a month, half-month, quarter, or year)

  4. Save and Submit the entry.

Stock closing entry

2. What Happens After Submission?

The system will generate the consolidated closing stock information for the period selected after submission.

It includes:

  • The item

  • The warehouse

  • Batch (if applicable)

  • Inventory dimensions (any Project, Cost Centre, etc.)

  • Value and Quantity

Stock reports are much faster since this information is stored in a separate table named Stock Closing Balance.

3. Advantages of Using Stock Closing Entry:

  • Faster Report Generation: Faster Report Creation Stock reports, like Batch-Wise Balance History and Stock Balance, utilize this pre-calculated data instead of recalculating repeatedly from Stock Ledger Entries.

  • Improved Performance: especially beneficial for companies that engage in lots of stock transactions.

  • Better Accuracy in Reports: ensures opening balances are accurate using closing balances already posted.

Important Notes:

  • Available from ERPNext v16 onwards.

  • While not mandatory, it is highly recommended for stock-intensive setups in order to achieve optimal performance.

  • They can later be used as a reference point for stock valuations and audits once they have been created.

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