Stock Entry
A Stock Entry lets you record Item movement between Warehouses.
To access the Stock Entry list, go to: > Home > Stock > Stock Transactions > Stock Entry
Stock Entries can be made for the following purposes:
- Material Issue: If the material is being issued to someone in or outside the company (Outgoing Material). The Items will be deducted from the Warehouse set under Source Warehouse.
- Material Receipt: If the material is being received (Incoming Material). The Items will be added to the Warehouse set under Target Warehouse.
- Material Transfer: If the material is being moved from one internal Warehouse to another.
- Material Transfer for Manufacturing: If raw materials are being transferred for manufacturing. The transfer can happen against a Work Order or a Job Card. To know more, visit the Bill of Materials page.
- Material Consumption for Manufacture: There can be multiple consumption stock entries against a manufacturing Work Order. Refer this link for more details.
- Manufacture: If the Material is being received from a Manufacturing/Production Operation.
- Repack: If the Original item/items are being repacked into new item/items.
- Send to Subcontractor: If the Material is being issued for a sub-contract activity. This entry is made from a Purchase Order. To know more, visit the subcontracting page.
To know more in detail about the stock entry types, visit this page.
1. Prerequisites
Before creating and using a Stock Entry, it is advised that you create the following first:
2. How to create a Stock Entry
Stock Entries for Manufacturing purposes are usually created from a Work Order. To create a Stock Entry manually for other purposes, follow these steps:
- Go to the Stock Entry list, click on New.
- Select the Stock Entry Purpose from the ones listed above.
- If you set the Default Source or Target Warehouses, they’ll be automatically filled for the rows in the Items table.
- Source/Target Warehouses will be available as per the Stock Entry Purpose you selected.
- Select Items and enter a quantity.
- The basic rate will be fetched and the amount will be calculated automatically.
- Save and Submit.
Usually, “Source Warehouse” and “Target Warehouse” both are set for recording a movement.
2.1 Additional options when creating a Stock Entry
2.2 Stock Entry Type
You can also establish a Stock Entry Type with a distinct name, such as ‘Scrap Entry,’ where the purpose remains as Material Transfer. This customization is beneficial when you wish to grant certain Users access only to particular stock-related actions.
3. Features
3.1 The Items table
Information regarding the Item, Rate, Quantity, etc., will be displayed in this section.
Enabling the ‘Allow Zero Valuation Rate’ option permits the submission of the Purchase Receipt even if the Valuation Rate of the Item is 0. This might be applicable for sample items or in accordance with mutual agreements with your Supplier.
You can configure different Source and Target Warehouses for different Items.
3.2 Scrap and Process Loss
- Scrap Item: Scrap items are secondary products that can be treated as regular products. These scrap items will be assigned a valuation rate and will be allocated to the scrap warehouse. Users have the flexibility to manually set the valuation rate for the scrap item in the Basic Rate field.
- Process Loss: Process Loss does not affect the stock inventory; instead, it reduces the quantity of Finished Goods (FG) Items. As illustrated in the image below, suppose a user plans to manufacture 100 FG Items, but due to the manufacturing process, only 80 items are produced. Consequently, the system recognizes the shortfall of 20 items as Process Loss Quantity. The cost associated with the 20 lost items is then factored into the cost of the remaining 80 FG Items.
3.3 Additional Costs
If the stock entry involves incoming items, such as receiving goods at a target warehouse, you can include associated additional costs like shipping charges, customs duty, or operating costs. These additional costs are factored into the calculation of the valuation rate of the items.
To include additional costs:
- Choose the Expense Account to which the expenses from this Stock Entry will be attributed.
- Specify the description and amount of the cost in the Additional Costs table.
The added additional costs are distributed among the received items, based on the Target Warehouse mentioned, proportionately according to the Basic Amount of the items. Subsequently, the distributed additional cost is added to the basic rate of the item to compute the Valuation Rate.
3.4 Accounting Dimensions
You have the option to categorize various transactions according to different dimensions. Typically, Projects are treated as a default dimension, allowing for the tracking of expenses across different projects, which is a common practice. To know more about Accounting Dimensions, visit this page.
3.5 Printing Settings
Letterhead
You can print your Purchase Receipt on your company’s letterhead. Know more here.
Print Headings
Purchase Receipt headings can also be changed when printing the document. You can do this by selecting a Print Heading. To create new Print Headings go to: Home > Settings > Printing > Print Heading. Know more here.
3.6 More Information
- Opening Entry: Indicates whether this entry serves as the opening stock entry for the items.
- Remarks: Additional notes or comments regarding the item.
- Percentage Transferred: The proportion of items transferred, based on the purpose of the stock entry.
- Total Amount: The overall value of the items transferred.
3.7 Perpetual Inventory
If the perpetual inventory system is activated, any additional costs will be recorded in the Expense Account specified in the Additional Costs table.
3.8 After Submitting
After submitting a Stock Entry, you can go to the stock ledger or the accounting ledger from the dashboard.
4. Add to Transit
If you wish to perform a two-step transfer of materials between warehouses, you can utilize the ‘Add to Transit’ feature.
To use this feature, initiate a stock entry with the type set as ‘Material Transfer’ and activate the ‘Add to Transit’ checkbox. Then, designate the source warehouse from which the materials will be issued and choose a warehouse with the ‘Transit’ type as the target warehouse. You can create a transit warehouse by configuring the warehouse type as ‘Transit’ in the Warehouse master. Once configured, add the items to be transferred in the stock entry and submit it.
For the second stock entry at the destination warehouse, users have two options. They can either access the Original Stock Entry and select ‘End Transit,’ or create a new stock entry and choose ‘Get Items From’ -> ‘Transit Stock Entry.’ The system will retrieve items from the original stock entry, with the source warehouse (Transit warehouse) set to match the target warehouse from the original stock entry. Users need to specify the target warehouse and save the entry.