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Stock Picking

This guide explains how to manage stock movements using Stock Pickings (Receipts, Delivery Orders, and Internal Transfers).

Overview

Stock Picking is the core record for moving inventory in the system. It represents a "Pick List" or "Transfer Document" that instructs warehouse staff to move goods from one location to another.

Types of Pickings

  1. Receipts (Incoming): Receiving goods from vendors. Increases your physical stock.
    • From: Vendor Location -> To: Warehouse
  2. Delivery Orders (Outgoing): Shipping goods to customers. Decreases your physical stock.
    • From: Warehouse -> To: Customer Location
  3. Internal Transfers: Moving goods between internal locations (e.g., Warehouse to Shelf).
    • From: Internal Location 1 -> To: Internal Location 2

The Workflow

All pickings follow a standard lifecycle:

  1. Draft: The picking is created but not yet finalized. You can edit products and quantities.
  2. Confirmed: The planned movement is locked.
  3. Assigned: The system checks stock availability (for Deliveries/Transfers).
    • If stock is available, it reserves the items.
  4. Done (Validated): The movement is physically completed and stock levels are updated.

Goods Receipt Note (GRN) from Purchase Orders

When you confirm a Purchase Order with storable products, the system automatically creates a Draft Goods Receipt Note (GRN) — a special type of Receipt picking linked to your PO.

Automatic GRN Creation

  1. You confirm a Purchase Order containing storable products.
  2. The system creates a draft StockPicking of type Receipt.
  3. Stock Moves are created for each storable product line.
  4. The GRN is linked to the PO via purchase_order_id.

Validating the GRN

When goods physically arrive:

  1. Navigate to Inventory > Operations > Transfers and find the GRN linked to your PO.
  2. Verify quantities match what was received.
  3. Click Validate to confirm receipt.
  4. Stock quantities are updated and the PO status changes to Partially Received or Fully Received.

Three-Way Matching

When you create a Vendor Bill linked to a Purchase Order, the system performs three-way matching:

Document What is Checked
Purchase Order What was ordered (quantities, prices)
GRN What was physically received
Vendor Bill What the vendor is charging

Matching statuses:

  • ✅ Fully Matched — All quantities received and match the bill
  • ⚠️ Pending Receipt — Goods not yet received (blocks posting in strict mode)
  • ⚠️ Partially Received — Some goods received, more expected
  • ❌ Quantity Mismatch — Bill quantity differs from received
  • ❌ Price Mismatch — Bill price differs from PO price

1. Receiving Goods (Receipts)

Use this when your vendor delivers products you ordered.

  1. Navigate to Inventory > Operations > Transfers (or created automatically from a Purchase Order).
  2. Open the Receipt.
  3. Check Quantities: Verify the "Planned Quantity" matches what the vendor sent.
  4. Validate: Click the Validate button.
    • Partial Receipt: If you received less than planned, enter the actual quantity received.
    • The system will ask if you want to create a Backorder for the missing items.
      • Create Backorder: Choose this if the vendor will send the rest later.
      • No Backorder: Choose this if the vendor will NOT send the rest (cancels remaining qty).

2. Delivering Goods (Delivery Orders)

Use this to ship products to customers.

  1. Navigate to Inventory > Operations > Transfers (or created automatically from a Sales Order).
  2. Open the Delivery Order.
  3. Check Availability: Ensure the state is Assigned (Ready). If it says "Confirmed" (Waiting), you may not have enough stock.
  4. Assign Lots (Optional): If the product is tracked by lots/serial numbers, click the "Detailed Operations" or assign icon to select which specific lots you are shipping.
  5. Validate: Click Validate to Confirm shipment.
    • Stock is deducted from your inventory.
    • A Journal Entry is automatically created to record the Cost of Goods Sold (COGS).

3. Internal Transfers

Use this to move items inside your own warehouse (e.g., receiving dock to storage shelf).

  1. Create a new Transfer.
  2. Operation Type: Select "Internal Transfer".
  3. Locations:
    • Source Location: Where the item is now.
    • Destination Location: Where you are moving it to.
  4. Add Items: Select products and quantities.
  5. Confirm and Validate.
    • Note: Internal transfers update quantities but do not generate accounting Journal Entries (as the overall inventory value hasn't changed).

Backorders Explained

When you validate a picking for less than the planned quantity, the system allows you to create a Backorder.

  • Result:
    1. The current picking is marked Done for the amount you processed.
    2. A NEW picking is created for the remaining amount.
    3. This new picking stays in "Assigned" or "Confirmed" state until you are ready to process the rest.

Troubleshooting

  • "Check Availability" fails: You likely don't have enough stock in the Source Location. Check your "Stock on Hand" report.
  • Duplicate Entry Error: Ensure you are not double-clicking Validate.
  • Accounting Entries: Receipts debit Inventory; Deliveries debit COGS. Internal transfers do neither.