Opening Stock Balance Process

If your organization has inventory before starting ERPNext, you need to upload your opening stock quantities and values.

Steps:

Step 1: Ensure Items Are Created

1. Go to Stock → Item
2. Create all inventory items

Step 2:

1. Go to Stock > Stock Reconciliation > New.
2. Select Purpose = Opening Stock
3. Enter: Item, Warehouse, Qty, Valuation Rate
4. Ensure:
   1. Posting Date and Posting Time are correct
   2. Should be the first entry of the company, usually at 00:00 hrs
5. Save and Submit.

Benefits:

1. Updates opening quantity
2. Updates opening valuation
3. Maintains FIFO/LIFO consistency

Reports to Verify Balances

1. Balance Sheet: Confirm stock valuation appears under Current Assets → Stock in Hand.
2. Stock Ledger: Verify each Opening Stock entry is reflected with correct posting time and ensure no negative stock appears.
3. Stock Balance Report: Check Qty and Value for each item and confirm warehouse-wise balances.