# ERPNext Stock Entry Types Reference

> Source: https://netray.co/tools/erpnext-stock-entry-types-reference
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

A lookup table of ERPNext Stock Entry purposes showing which warehouses are required, what the entry does and when to use it.

## Category

other-erp

## Erp

ERPNext

## Industry

Small Manufacturing

## Audience

- ERP admin
- Inventory manager
- Production planner

## Tool

**Kind:** worksheet

**Mode:** reference

**Columns:**

#### Stock Entry type

**Key:** purpose

**Type:** text

#### Source warehouse

**Key:** source

**Type:** text

#### Target warehouse

**Key:** target

**Type:** text

#### What it does

**Key:** effect

**Type:** text

#### Typical use

**Key:** use

**Type:** text

**Rows:**

**Purpose:** Material Receipt

**Source:** Not used

**Target:** Required

**Effect:** Adds stock to a warehouse without a purchase document

**Use:** Opening stock, found stock, receipt without a PO

**Purpose:** Material Issue

**Source:** Required

**Target:** Not used

**Effect:** Removes stock from a warehouse

**Use:** Scrap, internal consumption, write-off of damaged goods

**Purpose:** Material Transfer

**Source:** Required

**Target:** Required

**Effect:** Moves stock between warehouses

**Use:** Stores to shop floor, between sites, relocation

**Purpose:** Material Transfer for Manufacture

**Source:** Required

**Target:** Work-in-progress warehouse

**Effect:** Moves raw materials to WIP against a Work Order

**Use:** Issuing components to production

**Purpose:** Material Consumption for Manufacture

**Source:** Required

**Target:** Not used

**Effect:** Records extra consumption of materials against a Work Order

**Use:** Additional material used beyond the BOM

**Purpose:** Manufacture

**Source:** WIP for components

**Target:** Finished goods for output

**Effect:** Consumes components and books finished goods against a Work Order

**Use:** Completing production quantity

**Purpose:** Repack

**Source:** Required

**Target:** Required

**Effect:** Converts items into other items without a BOM

**Use:** Splitting bulk into packs, relabelling

**Purpose:** Send to Subcontractor

**Source:** Required

**Target:** Supplier warehouse

**Effect:** Sends raw materials to a subcontractor

**Use:** Outside processing, job work

**Notes:** Names and available purposes differ slightly between ERPNext versions, and newer versions add types such as Disassemble or Receive from Customer. Check the Purpose dropdown on your own Stock Entry. Valuation and general ledger impact depend on your perpetual inventory settings.

## Content

**Intro:** In ERPNext, many stock movements that do not come from a purchase receipt, delivery note or invoice go through the Stock Entry document. Choosing the wrong purpose posts stock to the wrong place and distorts costing. This reference sets out the common purposes and when to use each.

**Sections:**

#### How to use the reference

**Body:** Search for the movement you want to record, such as issue, transfer or manufacture, and read which warehouses the purpose requires. Pick the matching purpose on the Stock Entry rather than forcing a different one. If your business event has a dedicated document, for example a purchase receipt for goods from a supplier, use that document instead, because it carries the supplier, tax and payable trail that a bare Stock Entry does not.

**Bullets:**

- Prefer purchase receipts and delivery notes for external trades.
- Use Stock Entry for internal movements and adjustments.
- Always set the posting date and time correctly for backdated entries.

#### How production entries fit together

**Body:** Manufacturing in ERPNext runs through a Work Order. Material Transfer for Manufacture moves components to the work-in-progress warehouse, and Manufacture consumes them and books the finished item. If you track extra usage, Material Consumption for Manufacture records it against the same order. Depending on settings, backflush from the BOM can combine transfer and consumption. Knowing which entry posts which warehouse movement makes stock and valuation discrepancies far easier to trace.

#### Worked example

**Body:** A bracket Work Order for 100 units needs steel blanks stored in Stores. A transfer for manufacture moves the blanks from Stores to WIP. When the shop completes 100 brackets, a Manufacture entry consumes the blanks from WIP and receives the brackets into Finished Goods. If the operator scrapped three blanks, a Material Issue from WIP records the loss. The stock ledger then shows each step with its valuation.

#### Common mistakes

**Body:** Using Material Receipt for purchased goods hides supplier cost and breaks the purchase trail. Using Material Issue to fix a counting error without a reason leaves no audit story, so use Stock Reconciliation for counts. Backdating entries after reports are reviewed shifts valuation of later movements. Finally, allowing negative stock lets entries post for items that were never received, which makes later margins wrong.

**Bullets:**

- Use Stock Reconciliation for physical count corrections.
- Disable negative stock unless you have a strong reason.
- Give each warehouse an account when perpetual inventory is on.

**Cta:** If you want ERPNext stock and production data analysed or connected to other systems, Netray can build that integration.

**Faq:**

#### What is a Stock Entry in ERPNext?

**Answer:** It is the document used to record stock movements that are not tied to a purchase receipt, delivery note or sales invoice. It has a purpose that decides which warehouses are required and how the movement posts.

#### What is the difference between Material Transfer and Material Transfer for Manufacture?

**Answer:** Material Transfer moves stock between any two warehouses. Material Transfer for Manufacture is linked to a Work Order and moves components to its work-in-progress warehouse, updating the transferred quantity on the order.

#### When should I use Repack?

**Answer:** Use Repack when you convert one set of items into another without a formal BOM, such as splitting bulk into smaller packs. If the conversion is a repeating production process, use a BOM and Work Order instead.

#### How do I correct a wrong stock count?

**Answer:** Use Stock Reconciliation, which sets the quantity and valuation of items in a warehouse and keeps the audit trail. Avoid receipt and issue entries for count corrections, since they obscure the reason for the adjustment.

## Search terms

erpnext stock entry types, erpnext material transfer for manufacture, erpnext stock entry purpose, erpnext material issue vs material receipt, erpnext manufacture stock entry, erpnext repack stock entry, erpnext send to subcontractor, erpnext stock entry accounting

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