---
title: "Stock Settings"
space: "ERPNext"
url: "https://www.prilk.com/docs/erpnext/stock-settings"
updated: "2026-05-15"
---

## Stock Settings

Stock Settings holds the global rules ERPNext applies to all stock movements — defaults, validations, valuation behaviour.

### Where to find it

**Stock Settings** in the Awesome Bar. Single-record settings page.

### Key fields

| Field | What it does |
|---|---|
| **Default Item Group** | Group new items fall into if you don't pick one |
| **Default Stock UOM** | Default unit of measure for new items (usually "Nos") |
| **Default Warehouse** | Where new stock movements default to |
| **Valuation Method** | FIFO / Moving Average / Standard — applied site-wide unless overridden per item |
| **Allow Negative Stock** | If Yes, you can ship more than you have (creating negative stock) |
| **Show Barcode Field** | If Yes, items have a Barcode field |
| **Auto-create Material Request from Re-order Level** | If Yes, ERPNext auto-creates Material Requests when stock drops below the re-order level |
| **Auto-create Purchase Order from Material Request** | If Yes, an MR becomes a PO automatically (use with care) |
| **Backflush Raw Materials for Subcontracting** | For subcontract — auto-consume materials when finished item received |
| **Set Posting Time** | If Yes, users can edit the posting time on stock entries (otherwise it's now) |
| **Update Item Price on Each Purchase** | If Yes, item's standard purchase rate auto-updates after each Purchase Invoice |

### When to change these

| Situation | Setting |
|---|---|
| Strict inventory accuracy required | **Allow Negative Stock = No** |
| Backdated stock entries allowed | **Allow Negative Stock = Yes** (sometimes inevitable during migration) |
| Standardise FIFO across all items | **Valuation Method = FIFO** |
| Per-item flexibility (FIFO for goods, Moving Avg for spare parts) | Set per Item, leave site-wide as preferred default |
| Aggressive automation of re-ordering | Enable **Auto-create Material Request** + tune reorder levels per item |

### Reorder levels

For each Item, set:
- **Re-order Level** — quantity that triggers a Material Request
- **Re-order Quantity** — how much to order
- **Re-order Period** — minimum days between re-orders (avoids duplicate MRs)

ERPNext's reorder system (with Stock Settings auto-create enabled) keeps stock topped up without manual checking.

### Effect on existing data

Settings apply to **new** transactions. Existing Stock Entries, Material Receipts, etc. keep their original rules. Changing **Valuation Method** site-wide doesn't retroactively re-cost existing transactions — run **Repost Item Valuation** if needed.

### Related

- [UOMs](/docs/erpnext/uoms) — units of measure setup
- [Item Groups](/docs/erpnext/item-groups) — categorising your catalogue