Stock Entry is a stock transaction, which can be used for multiple purposes. Let’s learn about each Stock Entry Purpose below.

1.Purpose: Material Issue

A Material Issue entry is generated to dispense item(s) from a warehouse. Upon submission of the Material Issue, the stock of the item(s) is reduced from the Source Warehouse.

Material Issues are typically conducted for low-value consumable items such as office stationery and product consumables. Additionally, Material Issues can be created to reconcile the stock of serialized and batched items.

2.Purpose: Material Receipt

A Material Receipt entry is generated to receive the stock of item(s) into a warehouse. This form of stock entry can be utilized to adjust the opening balance of serialized and batched items. Additionally, items procured without a Purchase Order can be received through a Material Receipt entry.

For stock valuation purposes, the Item Valuation field becomes a compulsory requirement in the Material Receipt entry.

3.Purpose: Material Transfer

Material Transfer entry is created for the inter-warehouse Material Transfer.

4.Purpose: Material Transfer for Manufacture

During the manufacturing process, raw materials are transferred from the stores to the production department, typically the Work in Progress (WIP) warehouse. The Material Transfer entry for this process is initiated from the Work Order. The items listed in this entry are retrieved from the Bill of Materials (BOM) associated with the production Item selected in the Work Order.

4.Purpose: Manufacture

A Manufacture entry is generated from a Work Order. Within this entry, both raw material items and production items are sourced from the Bill of Materials (BOM) designated in the Work Order. For raw material items, only the Source Warehouse, typically the WIP warehouse, is specified. Conversely, for the production item, only the target warehouse specified in the Work Order is updated.

Upon submission, the stock of raw material items is deducted from the Source Warehouse, indicating consumption during the manufacturing process. Simultaneously, the Production Item is transferred to the Target Warehouse, signifying the completion of the production cycle.

5.Purpose: Repack

Repack Entry is created when items purchase in bulk is repacked under smaller packs.

6.Purpose: Subcontract

Subcontracting transactions entail the company transferring raw material items to the subcontractor’s warehouse. This necessitates the inclusion of a warehouse for the subcontractor. The subcontract entry facilitates the transfer of stock from the company’s warehouse to the subcontractor’s warehouse. Check this page to know more about Subcontracting.