Stock Reconciliation
Stock Reconciliation means checking and updating the quantity and value of items in your warehouse, usually at year-end.
This is done in order to: - To match the physical stock with the system stock
- To update stock values for accounting purposes
The Stock Reconciliation feature in ERPNext is used for: - Entering opening stock
- Matching physical and book stock
To access the Stock Reconciliation list, go to: > Home > Stock > Tools > Stock Reconciliation
1. How to Make an Opening Stock Stock Reconciliation
You can update the values and quantities of items in a warehouse as of a given date by using stock reconciliation. Items with serial or batch numbers can also be added.
Go to Stock Reconciliation ➝ Click New
Put "Opening Stock" as the purpose.
Update the Posting Date and Time if needed
Enter the following:
Code of Item
The warehouse
Amount
Rate of Valuation
- Enter the item's serial number or batch number if it exists.
- If you want the system to generate it automatically, leave it blank.
Configuring Auto-generation:
Regarding Serial Numbers: In the item master, set "Serial Number Series."
Turn on "Automatically Create New Batch" for batch numbers in the item master.
To finish the entry, click Save and Submit.
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2. How to Create a Stock Reconciliation to Reconcile Book and Physical Stock Count
Using the actual physical count as a guide, stock reconciliation assists you in updating system stock. This function guarantees the accuracy of your inventory records for reporting and accounting needs.
Steps to Reconcile Stock: 1. Go to Stock Reconciliation ➝ Click New
Set Purpose to "Stock Reconciliation"
Update the Posting Date and Time if needed
Enter the following:
Code of Item
The warehouse
- The system will retrieve the current quantity and valuation rate.
- To reflect your actual stock count, update the quantity.
Stock Adjustment will be the default setting for the difference account.
The Cost Center will default to Main — change it if necessary
To finish the reconciliation, save and submit the document.
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3. Features
3.1 Upload Data Using a Spreadsheet
If you need to update a lot of things, you can upload stock data using a spreadsheet.
- Steps: Download the template
Start a new Stock Reconciliation.
Click the "Download" button to get the CSV template.
- Finish the CSV file.
- Don't change the column headers because they are case-sensitive.
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- Upload the file.
- Click "Upload" after selecting your finished CSV file.
Review the data, then save and Submit it in.
Check Stock Ledger Report for updated stock balance.
3.2 Obtain the Stock Balance and Valuation at a Particular Time and Date
To fetch stock balance and valuation as of a specific date and time from a selected warehouse:
Open a new Stock Reconciliation.
Choose the Time and Date of Posting.
Select the Warehouse.
This will retrieve the quantity and valuation rate of every item in that warehouse as of the chosen time and date.
Before saving and submitting the document, you have the option to manually update the Quantity and Valuation Rate in the list.
3.3 Physical Inventory Reconciliation with a Barcode Scanner
If your products have barcodes, you can effectively reconcile physical stock counts by using a barcode scanner.
- Set the Default Warehouse
- In the Stock Reconciliation form, select the warehouse where the inventory count is being performed.
2. Turn on "Scan Mode." - Click on the Scan Barcode field. - When you do this, you can add quantities by scanning items; each scan increases the quantity. It also stops fetching existing quantities.
3. Start Scanning Items In the Scan Barcode field, click. Scan item barcodes with your barcode scanner. As you scan, the Items table will automatically update, adding or incrementing items.
4. How Stock Reconciliation Works
Once a Stock Reconciliation is submitted:
It sets the definitive stock position for a warehouse on that specific date and time.
Backdated transactions (before the reconciliation date) will not affect stock levels after the reconciliation.
However, prior entries do adjust balances leading up to the reconciliation.
4.1 Non-Serialized Items
Ordinary products without distinct serial numbers are known as non-serialized items. If you purchase 100 bottles of water, for instance, you do not keep track of each bottle individually.
"This is the correct quantity I have right now," is all you're telling the system when you use Stock Reconciliation in ERPNext for these items. You enter that information in a stock reconciliation, and the system updates if your system indicates 80 units when you actually have 100. Additionally, it modifies your stock's value according to the price you input.
4.2 Serialised Items
Products such as phones, laptops, or equipment that are serialised have a serial number that allows each unit to be tracked separately.
When you utilise Stock Reconciliation in ERPNext for serialised items, you are not only updating the quantity but also the specific serial numbers that you possess. You take out the ones that are missing and enter the correct serial numbers with the correct values if the system displays six serial numbers but you actually only have three. After that, ERPNext will make the necessary adjustments to your accounts and stock.
5. Serial and Batch Bundle
ERPNext introduced a flexible feature for managing serialized and batched items during stock transactions — including Stock Reconciliation.
Options for Serial & Batch Reconciliation:
Option 1: Use Serial No / Batch Fields
Tick the checkbox “Use Serial No / Batch Fields” inside the item row
The system auto-bundles the serial or batch items based on what you enter
Option 2: Use Serial / Batch Bundle
Use this to manually manage reconciliation using a bundle
Two options:
Reconcile All Serial Nos / Batches: Auto-loads all existing
Reconcile Selected Serial Nos / Batches: Manually choose which ones to adjust
Tip: Ideal when you’re doing partial adjustments or working with multiple batches/serials in one go.