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A Stock Entry is the record you create whenever stock moves internally within your business - not from or to an external party. Think of it as a logbook entry for stock that changes location, gets written off, or needs adjustment. No money is exchanged; only inventory positions change.
Stock Entry form showing entry type, source and target warehouses, and items table with batch selection

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Who Uses This Feature

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Types of Stock Entry

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How to Create a Stock Entry

  1. Go to Stock workspace → Stock Entry → New
  2. Select the Stock Entry Type (e.g. Material Issue, Material Transfer)
  3. Set the Posting Date and Posting Time (defaults to now)
  4. If transferring: set the Source Warehouse (From) and Target Warehouse (To)
  5. Add items in the Items table:
    • Select the item
    • Enter the quantity
    • Select the Batch No (for batch-tracked medicines)
  6. Submit
Stock Entry items table showing item, batch number, quantity, source warehouse, and target warehouse

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Common Use Cases

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Writing Off Expired Medicine

When a batch of medicine has expired and needs to be removed from stock:
  1. Create a Stock Entry → Type: Material Issue
  2. Source Warehouse: where the expired stock is stored
  3. Add the item, select the expired batch, enter the quantity
  4. In the Reason / Additional Note field: note “Expired - Batch [number], Expiry [date]”
  5. Submit
The expired stock is removed from inventory. The loss in value is posted to your Loss/Write-off Account.

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Moving Stock Between Locations

When you receive a delivery to the back room and need to move it to the main store shelf:
  1. Create a Stock Entry → Type: Material Transfer
  2. Set From Warehouse = Back Room
  3. Set To Warehouse = Main Store
  4. Add the items being moved with quantities and batches
  5. Submit

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Opening Stock Entry

When setting up the system for the first time and you have existing stock:
  1. Create a Stock Entry → Type: Material Receipt
  2. Target Warehouse: where the opening stock is stored
  3. Add all items with their current quantities, batches, and valuation rates
  4. Submit
This is a one-time action done during initial system setup.

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Repacking

If you buy medicines in boxes (e.g. 10 strips per box) and sell them by strip:
  1. Create a Stock Entry → Type: Repack
  2. Source: the box (1 box = 10 strips)
  3. Target: the strip (10 strips)
  4. This converts the unit of measure while maintaining the total value

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Field Guide

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Items Table

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Impact on Accounts

Stock Entries affect your financial accounts if Perpetual Inventory is enabled:
  • Material Issue → debits the loss/expense account, credits the stock account (stock value decreases)
  • Material Transfer → no net financial impact (same value moves between warehouse accounts)
  • Material Receipt → debits stock account, credits the opening stock or adjustment account
Your accounts team can see these entries in the General Ledger.

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Best Practices

  • Always specify the batch when writing off expired stock. Without a batch reference, the write-off is recorded but the batch quantity does not reduce correctly.
  • Create stock transfers promptly. If stock has physically moved from the back room to the shelf, update the system immediately. Delayed entries lead to incorrect warehouse-level stock counts.
  • Write a clear reason for every write-off. Future auditors and managers need to understand why stock was written off. Use the note/remarks field.
  • Do not use Stock Entry for supplier returns. A Purchase Return (via Purchase Receipt) is the correct document for returning goods to a supplier.
  • Do not use Stock Entry for customer returns. A Sales Return (via Delivery Note or POS Invoice) is the correct document for accepting goods back from a customer.

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Common Mistakes

  • Using “Material Issue” to simulate a sale. Sales at the counter should go through the POS or Sales Invoice - not through a Stock Entry. Using Stock Entry for sales bypasses GST and revenue recording.
  • Not selecting the batch for expired stock write-offs. The expired batch continues to show as “in stock” in batch reports even after the write-off.
  • Using the wrong warehouse. If you issue stock from the wrong warehouse, the counts at both locations are wrong. Double-check Source/Target warehouses before submitting.
  • Submitting before verifying quantities. Stock Entries are hard to reverse once submitted. Count physically before entering the quantity.