brotherton-erpnext/erpnext/docs/user/guides/stock/index.md
2015-11-09 14:40:34 +05:30

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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.
### Topics
{index}