28 lines
1.1 KiB
Markdown
28 lines
1.1 KiB
Markdown
For most small business that deal in physical goods, a large part of their net
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worth is invested in the stock in hand.
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### Material Flow
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There are three main types of entries:
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* Purchase Receipt: Items received from Suppliers against Purchase Orders.
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* Stock Entry: Items transferred from one Warehouse to another.
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* Delivery Note: Items shipped to Customers.
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#### How does ERPNext track stock movement / levels?
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Tracking stock is not just about adding and subtracting quantities. Some
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complications arise when:
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* Back-dated (past) entries are made / edited: This affects future stock levels and may lead to negative stock.
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* 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.
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* 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.
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To manage this, ERPNext collects all inventory transactions in a table called
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the Stock Ledger Entry. All Purchase Receipts, Stock Entries and Delivery
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Notes update this table.
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### Topics
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{index}
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