Whenever we migrate from any legacy software to ERPNext, we will have to upload the Closing Stock from the legacy system as Opening Stock in ERPNext. This provides a snapshot of Stock position as of the cut-off date.

The cut-off date is the date after which you would like to start recording transactions in ERPNext. For example, if you would like to start transacting in ERPNext from 1st April, the cut-off date would be 31st March.

Next, lets understand what is stock reconciliation. It is the process of reconciling the Physical Stock as found in the physical warehouses with the System Stock in ERPNext. The Physical Stock and the System Stock may vary for various errors and omissions which is accounted for in the Stock Reconciliation.

To do a Stock Reconciliation, you will have to do a physical count of Stock in your Warehouse and then compare it with the Stock in the system. Now, let us take a look at how to add Opening Stock and do a Stock Reconciliation on ERPNext.