Inventory transfer/disbursement

This document explains how to use ERPNext's Stock Entry feature to record warehouse transfers and manufacturing-related issuances.

6 min
Updated: March 5, 2026
Intermediate
Inventory transferStock EntryPayoutReceiving stockwarehouse

What is Stock Entry?

Inventory movement is a form used to record the movement of inventory between warehouses, as well as the issuance of raw materials and the receipt of finished goods for manufacturing. It is a core operation of inventory management in ERPNext.


Types of inventory transfers

PurposeExplanation
Material TransferTransfer from Warehouse A to Warehouse B
Material ReceivingInbound materials from external sources (excluding purchased materials)
Material DisbursementInventory Consumption/Disposal
For ManufacturingDisbursement of raw materials based on manufacturing orders
CompletedInventory of completed products

Inventory transfer for manufacturing

Step 1: Create from production order

  1. Submitted Manufacturing instructions Open
  2. Click "Create ▾""Move Inventory (for Manufacturing)"

Step 2: Review the contents

Raw materials based on the Bill of Materials (BOM) will be automatically entered.

Item NameDescription
Item CodeIngredients
QuantityDisbursement Quantity (BOM × Manufacturing Quantity)
Former WarehouseWarehouse where raw materials are stored
Previous WarehouseWork-in-Progress (WIP) Warehouse

Step 3: Submission

Clicking Submit will result in:

  • Inventory decreased from the former warehouse.
  • Inventory increases in the Work in Progress (WIP) warehouse.

Incoming stock of finished products

Once manufacturing is complete:

  1. Open the production order.
  2. Click "Create ▾""Finish"
  3. Enter the quantity of the finished product.
  4. “Submit”

The finished products will be stored in the designated warehouse.


Inventory transfer between warehouses

When moving inventory between warehouses:

Step 1: Create a new inventory transfer

  1. In the search bar在庫移動 type
  2. Click "+ Add"
  3. Select "Material Transfer" under Purpose.

Step 2: Enter the item

Item NameDescription
Item CodeItem to move
QuantityMoving quantity
Original WarehouseWarehouse to which it was moved
Previous WarehouseDestination Warehouse

Step 3: Submission

Clicking "Submit" will move the inventory from the original warehouse to the destination warehouse.


Disposal of Inventory

When disposing of defective or expired stock:

  1. Create a new inventory transfer.
  2. Objective: Select "Material Dispatch"
  3. Enter the items and quantities to be disposed of.
  4. Inventory decreases upon "Submission"

Next Steps

We've learned all the procedures for the manufacturing section. Now let's move on to the manual for a different role.

- For accounting staff → Setting up account titles - System administrators → Adding users and setting permissions

Want to learn more?

If you have any questions about how to use the system, please get in touch. Our ERPNext implementation specialists will support you directly.