Stock Settings
The Stock Settings page allows you to configure all of your default settings for stock-related transactions. This covers default warehouses, pricing practices, stock valuation, and item names. During stock operations, these settings guarantee consistency and save time.
Defaults
Item Defaults
This page enables you to set system-wide defaults while making new Items in ERPNext.
Item Naming By
Regulates the creation of item names:
Item Code (by default): The item code and item name will match.
Naming Series: Uses a preset series to automatically generate names.
The default method of valuation
Set item valuation logic:
FIFO (First In First Out) – default.
For every new item, the Moving Average option is available.
The default group of items
- Optional. All newly created items can have their Item Group set to default.
The default warehouse
- Choose the warehouse that shows up by default when transactions involving stocks are made.
Warehouse for Sample Retention
- Sample or retention inventory is kept in a warehouse.
UOM for Default Stock
- Stock is measured in the default unit (e.g., Nos, Kg, Ltr).
Price List Defaults
This page sets up how ERPNext automatically prices items when the items are utilized within Sales or Purchase transactions.
Auto Insert Item Price If Missing
- The price of an item is automatically added to the Price List when it is used for the first time in a transaction.
Update Existing Price List Rate
- If the item price is already in the Price List, checking this will update it.
Update Price List Based On
Choose the field that the rate is calculated in:
Choices: Amount, Rate, etc.
Rate is chosen in your instance.
Stock UOM Quantity
This page manages how quantities are processed in transactions when you have multiple units of measure (UOM), particularly when you have conversion factors.
Allow to Edit Stock UOM Qty for Sales Documents
- Allows users to change the stock UOM quantity on delivery notes, sales invoices, and other documents.
Allow to Edit Stock UOM Qty for Purchase Documents
- The same as above, but for purchase invoices and receipts.
Allow UOM with Conversion Rate Defined in Item
- Limits UOMs in Sales and Purchase to those specified in the Item master with a valid conversion rate if it is checked.
Stock Validations
Stock Transactions Settings
In stock documents such as sales orders, purchase receipts, pick lists, and delivery notes, you will be able to define how ERPNext deals with over-delivery, over-picking, internal transfers, and major stock behaviours.
It is possible to set default values automatically used when you introduce a new item into ERPNext in the Item Defaults section.
Your stock transactions and item records will be uniform courtesy of these defaults, which also save time.
Allowance for Over Delivery/Receipt (%)
The percentage cap on transactions such as purchase receipts and delivery notes that involve receiving or delivering more stock than is necessary.
Example: ERPNext will permit receiving or delivering up to 110 units if you order 100 units and set this allowance to 10%.
Allowance for Over Transfers (%)
The percentage cap for moving more inventory than was initially specified in the documents for stock entry or material transfers.
Example: the system permits the transfer of up to 110 units if 100 units are ordered and the allowance is 10%.
Allowance for Overpicking (%)
Pertains to pick lists that are utilised in warehouse operations.
The amount that can be picked over the ordered quantity is controlled by this setting.
Helpful when pick-and-pack operations require flexibility from warehouse employees.
Role Allowed to Over Deliver/Receive
Choose a role that has the authority to go beyond the previously stated allowance caps.
The only users who can deliver or receive quantities above the allowed percentages are those who have been assigned this role.
Allow Negative Stock
ERPNext permits temporary negative stock levels if it is enabled.
Example: Even if the system indicates that there is no stock, you can still sell an item.
Note: Even with this setting enabled, serialised or batched items are not permitted to have negative stock.
Show Barcode Field in Stock Transactions
Shows the barcode field on stock transaction forms, such as delivery notes and purchase receipts.
beneficial for companies that use barcode scanning to enter data more quickly.
Convert Item Description to Clean HTML in Transactions
Removes unnecessary HTML and inline styles from item descriptions that have been copied from PDFs, websites, and other sources.
Helps maintain the consistency and cleanliness of your printed reports, invoices, and receipts.
Allow Internal Transfers at Arm's Length Price
When enabled, the system-calculated valuation rate will not be applied to the item rate during internal warehouse transfers (Material Transfer).
Accounting will continue to use the accurate valuation rate in the background, though.
Beneficial for companies that use internal branches to mimic external sale pricing.
Batch and Serial Item
Serial & Batch Item Settings
These settings determine ERPNext's treatment of serial numbers and batch numbers for items, particularly when it comes to inventory transactions such as purchase receipts, delivery notes, work orders, and stock entries.
Serial number and batch number tracking is required for compliance, quality control, warranty, and traceability.
Allow Existing Serial No to be Manufactured/Received Again
An existing serial number in the system can be used again for manufacturing or purchases if ERPNext is enabled.
Beneficial for managing equipment returns, repairs, rework, or reuse.
If this is not done, a validation error will appear when the same serial number is used twice.
Do Not Use Batch-wise Valuation
ERPNext will not track distinct costs for each batch if it is enabled.
Rather, the Moving Average valuation for all batches will be used.
It works best when batch-specific cost tracking is not required, such as for low-cost or quickly-moving items.
Auto Create Serial and Batch Bundle For Outward
ERPNext will automatically generate a Serial & Batch Bundle when stock leaves (in Delivery Notes, Invoices, etc.) if this is checked.
Helps track which serial numbers or batch numbers were sent together in a transaction.
Pick Serial / Batch Based On
Select the logic that will automatically assign batch or serial numbers in stock transactions.
FIFO (First-In-First-Out) is a typical setting.
Ensures that batches and serials are used consistently.
Disable Serial No And Batch Selector
keeps users from seeing the manual serial/batch number selection user interface while they are transacting.
Serials and batches will be automatically chosen by the system using the previously specified method (e.g., FIFO).
Perfect for fast-paced warehouses or those that use barcodes.
Use Serial / Batch Fields
When enabled, ERPNext will generate the Serial/Batch Bundle using the Serial No. and Batch No. fields that the user entered in the stock transaction.
This establishes a direct connection between the bundle and the manually input numbers.
Do Not Update Serial / Batch on Creation of Auto Bundle
If enabled, when ERPNext creates a bundle, it won't alter or replace the serial/batch values in the transaction.
When you only want to track bundles for logging or reference and want to keep the original input, use this.
Set Serial and Batch Bundle Naming Based on Naming Series
When generating Serial & Batch Bundles, use a unique Naming Series (such as BUNDLE-0001).
Helps keep naming consistent and easier to trace in reporting.
Have Default Naming Series for Batch ID?
If this is enabled, when new batches are created, ERPNext will automatically assign a Batch ID using a naming series (for example, BATCH-0001).
Maintains batch ID uniformity and avoids errors in manual entry.
Stock Reservation
ERPNext's Stock Reservation feature lets you lock or reserve certain amounts of stock for a specific order or use. This guarantees that no other transactions can use the reserved stock.
Make stock reservations available
ERPNext enables the system to reserve certain stock quantities for specific orders when it is enabled.
No other transactions can use the reserved stock.
Permit a Partial Reservation
- Permits the system to set aside a portion of the available stock for an order.
Automatic Stock Reserving for Purchased Sales Orders
Once a Purchase Receipt is submitted, connected to a Material Request connected to a Sales Order, ERPNext will automatically reserve stock if it is enabled.
As a result, less manual labour will be required because the system will immediately reserve newly purchased items for the customer order.
Batch and Serial Numbers for Auto Reserve
When enabled, ERPNext will use your configured method (such as FIFO) to automatically select and reserve Serial Numbers or Batch Numbers.
Functions in transactions that call for batch-level or serial tracking.
Quality
Quality Inspection Settings
This setting determines how ERPNext treats Quality Inspection (QI) in stock transactions, i.e., stock entries, delivery notes, and purchase receipts.
Before accepting or delivering the stock, quality control policies can be applied due to these settings.
- Action If Quality Inspection Is Not Submitted
Options: Stop, Warn.
This configuration determines what ERPNext should do if a Quality Inspection is not submitted prior to receiving or delivering the stock.
Stop (default): Prevents stock transactions (such as purchase receipts or delivery notes) from being done until the quality inspection is uploaded.
Warn: Displays a warning but does allow the purchase.
Use "Stop" to strictly enforce quality control prior to accepting or shipping goods.
- Action If Quality Inspection Is Rejected
Options: Stop, Warn.
This controls what to do if the Quality Inspection is refused as unsuccessful (rejected):
Stop: Prevents further processes, such as filling out the purchase receipt or stock entry.
Warn: Gives a warning but proceeds with the purchase anyway.
"Stop" prevents returned products from being inadvertently shipped to customers or placed in inventory.
- Allow to Make Quality Inspection After Purchase / Delivery (Checkbox)
When activated, you can complete the Delivery Note or Purchase Receipt and yet present a Quality Inspection.
Beneficial in processes where:
Inspection comes after receipt.
External labs are used.
There is a lag in quality control and delivery.
Stock Planning
Auto Material Request
This is automated generation of Material Requests once stock falls below re-order levels. It assists with stock maintenance without having to track by hand.
Raise Material Request When Stock Reaches Re-order Level
By default, if this option is enabled, ERPNext will automatically raise a Material Request (MR) for a particular item whenever its available stock decreases below the re-order level specified (in the Item master).
Material Requests can be for:
Purchase
Transfer
Manufacture (depending on the item's location)
Notify by Email on Creation of Automatic Material Request
Automatically sends an email notification to the users with the Purchase Manager role every time an automatic Material Request is created.
Keeps procurement staff informed in real time about low-stock actions.
Inter Warehouse Transfer Settings
These settings control how ERPNext processes stock transfers between internal warehouses through sales and purchase documents.
Allow Material Transfer from Delivery Note to Sales Invoice
Enabling it, ERPNext considers the Delivery Note as an inventory transfer and permits linking it directly to a Sales Invoice.
Used when stock is transferred internally (e.g., to a warehouse of a customer or branch) but subsequently billed.
Allow Material Transfer from Purchase Receipt to Purchase Invoice
Permits association of a Purchase Receipt (stock movement) with a Purchase Invoice (accounting).
Prevalent where goods are received ahead of being paid for — particularly in inter-branch or drop shipment cases.
Stock Closing
Control Historical Stock Transactions
This section prevents past stock transactions from being altered in an unapproved or involuntary way. It is particularly important for inventory accuracy, data integrity, and avoiding audit-related problems.
Stock Frozen Up to
Before this particular date, end users are prevented from creating or changing any stock transactions (such as purchase receipts or stock entries).
After monthly closing, audits, or reconciliations, this is used to freeze older records.
Freeze Stocks Over (Days)
Automatically blocks stock transactions that are more than a certain number of days old from the current date.
Example: if 30, users won't be able to edit transactions that are older than 30 days.
Role Allowed to Create/Edit Back-dated Transactions
You can enter a specific role that has the ability to post or edit past stock deals, such as Stock Manager or Accounts Manager.
All users can edit back-dated entries if they are left blank (assuming other freeze settings).
Editing back-dated stock entries prior to the most recent transaction for this item and warehouse is only permitted by the user who holds the role.
