For most small business that deal in physical goods, a large part of their net worth is invested in the stock in hand.

Material Flow

There are three main types of entries:

  • Purchase Receipt: Items received from Suppliers against Purchase Orders.
  • Stock Entry: Items transferred from one Warehouse to another.
  • Delivery Note: Items shipped to Customers.

How does ERPNext track stock movement / levels?

Tracking stock is not just about adding and subtracting quantities. Some complications arise when:

  • Back-dated (past) entries are made / edited: This affects future stock levels and may lead to negative stock.
  • Stock has to be valued based on First-in-First-out: ERPNext needs to maintain a sequence of all transactions to know the exact value of your Items.
  • Stock reports are required at any point in time in the past: You have to lookup what was the quantity / value your stock of Item X on date Y.

To manage this, ERPNext collects all inventory transactions in a table called the Stock Ledger Entry. All Purchase Receipts, Stock Entries and Delivery Notes update this table.


  1. Material Request
  2. Stock Entry
  3. Delivery Note
  4. Purchase Receipt
  5. Installation Note
  6. Item
  7. Warehouse
  8. Serial No
  9. Batch
  10. Projected Quantity
  11. Accounting Of Inventory Stock
  12. Tools
  13. Setup
  14. Sales Return
  15. Purchase Return
  16. Articles
  17. Opening Stock
  18. Stock How To
  19. Retain Sample Stock
  20. Delivery Trip