fix: do not zero out backdated stock at a stock reco adjustment entry (#59271)

* fix: do not zero out backdated stock at a stock reco adjustment entry

* fix: keep a stock reco adjustment entry value-only on cancel and refresh

* fix: read stock reco adjustment rows once and value them from the ledger

erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.py

@@ -800,7 +800,19 @@ class StockReconciliation(StockController):
 				)
 			)
 
-	def get_stranded_stock_value(self, row) -> float:
+	def get_balance_before_reconciliation(self, row) -> dict:
+		from erpnext.stock.stock_ledger import get_previous_sle
+
+		return get_previous_sle(
+			{
+				"item_code": row.item_code,
+				"warehouse": row.warehouse,
+				"posting_date": self.posting_date,
+				"posting_time": self.posting_time,
+			}
+		)
+
+	def get_stranded_stock_value(self, row, previous_sle=None) -> float:
 		"""Stock value the ledger still carries for an item-warehouse that has no quantity on hand.
 
 		This is what an adjustment entry writes off. The write-off is measured at item-warehouse
@@ -809,16 +821,10 @@ class StockReconciliation(StockController):
 		at an already empty batch while other batches of the same item still hold stock would
 		otherwise write off the valuation of the stock that remains.
 		"""
-		from erpnext.stock.stock_ledger import get_previous_sle, get_stock_value_difference
+		from erpnext.stock.stock_ledger import get_stock_value_difference
 
-		previous_sle = get_previous_sle(
-			{
-				"item_code": row.item_code,
-				"warehouse": row.warehouse,
-				"posting_date": self.posting_date,
-				"posting_time": self.posting_time,
-			}
-		)
+		if previous_sle is None:
+			previous_sle = self.get_balance_before_reconciliation(row)
 
 		if flt(previous_sle.get("qty_after_transaction")):
 			return 0.0
@@ -828,13 +834,23 @@ class StockReconciliation(StockController):
 		)
 
 	def make_adjustment_entry(self, row, sl_entries):
-		difference_amount = self.get_stranded_stock_value(row)
+		previous_sle = self.get_balance_before_reconciliation(row)
+		difference_amount = self.get_stranded_stock_value(row, previous_sle=previous_sle)
 
-		if not difference_amount:
+		# rounded, so float dust does not post an entry whose GL counterpart rounds away to zero
+		if not flt(difference_amount, self.precision("difference_amount")):
 			return
 
 		args = self.get_sle_for_items(row)
-		args.update({"stock_value_difference": -1 * difference_amount, "is_adjustment_entry": 1})
+		args.update(
+			{
+				"stock_value_difference": -1 * difference_amount,
+				# the row carries no rate, so carry the running one forward rather than stamp a zero
+				# that later rate lookups would read back as the last known valuation
+				"valuation_rate": flt(previous_sle.get("valuation_rate")),
+				"is_adjustment_entry": 1,
+			}
+		)
 
 		sl_entries.append(args)
 
@@ -897,7 +913,16 @@ class StockReconciliation(StockController):
 				has_dimensions = True
 
 		if self.docstatus == 2:
-			if row.current_qty and current_bundle:
+			if self.is_adjustment_row(row):
+				# Reversing a value-only entry must not shift any quantity, so mirror the balance the
+				# ledger carried across it and let get_stock_reco_qty_shift resolve to zero.
+				data.actual_qty = 0.0
+				data.qty_after_transaction = flt(row.current_qty)
+				data.previous_qty_after_transaction = flt(row.current_qty)
+				data.valuation_rate = flt(row.current_valuation_rate)
+				data.stock_value = flt(row.current_amount)
+				data.stock_value_difference = -1 * flt(row.amount_difference)
+			elif row.current_qty and current_bundle:
 				data.actual_qty = -1 * row.current_qty
 				data.qty_after_transaction = flt(row.current_qty)
 				data.previous_qty_after_transaction = flt(row.qty)
@@ -1029,9 +1054,14 @@ class StockReconciliation(StockController):
 
 		for row in self.items:
 			stock_value_difference = flt(get_row_stock_value_difference(self.doctype, self.name, row.name))
+			amount_difference = flt(stock_value_difference, row.precision("amount_difference"))
+
+			if self.is_adjustment_row(row):
+				self.set_adjustment_row_values(row, amount_difference)
+				difference_amount += amount_difference
+				continue
 
 			amount = flt(flt(row.qty) * flt(row.valuation_rate), row.precision("amount"))
-			amount_difference = flt(stock_value_difference, row.precision("amount_difference"))
 			current_amount = flt(amount - amount_difference, row.precision("current_amount"))
 
 			current_qty = self.get_current_qty_from_ledger(row)
@@ -1061,6 +1091,50 @@ class StockReconciliation(StockController):
 			update_modified=False,
 		)
 
+	def is_adjustment_row(self, row) -> bool:
+		# Read once for the whole voucher: both callers run per row, and a reconciliation
+		# submits and cancels synchronously for up to 100 of them.
+		if self.flags.adjustment_rows is None:
+			self.flags.adjustment_rows = set(
+				frappe.get_all(
+					"Stock Ledger Entry",
+					filters={
+						"voucher_type": self.doctype,
+						"voucher_no": self.name,
+						"is_adjustment_entry": 1,
+						"is_cancelled": 0,
+					},
+					pluck="voucher_detail_no",
+				)
+			)
+
+		return row.name in self.flags.adjustment_rows
+
+	def set_adjustment_row_values(self, row, amount_difference):
+		"""Refresh a value-only row: it moves no stock, so both sides carry the ledger's own figures
+		and ``amount_difference`` is the write-off booked to the GL, not a change in what is on hand.
+		"""
+		previous_sle = self.get_previous_ledger_entry(row) or frappe._dict()
+
+		current_qty = flt(previous_sle.get("qty_after_transaction"), row.precision("current_qty"))
+		current_valuation_rate = flt(
+			previous_sle.get("valuation_rate"), row.precision("current_valuation_rate")
+		)
+		# from the ledger's stock value, since rounding the rate first loses money on large qtys
+		current_amount = flt(previous_sle.get("stock_value"), row.precision("current_amount"))
+
+		row.db_set(
+			{
+				"amount": current_amount,
+				"current_qty": current_qty,
+				"current_valuation_rate": current_valuation_rate,
+				"current_amount": current_amount,
+				"quantity_difference": 0.0,
+				"amount_difference": amount_difference,
+			},
+			update_modified=False,
+		)
+
 	def get_current_qty_from_ledger(self, row):
 		"""Current (pre-reconciliation) qty for a row, recomputed from the ledger after reposting.
 
@@ -1075,6 +1149,14 @@ class StockReconciliation(StockController):
 			)
 			return abs(flt(total_qty, row.precision("current_qty")))
 
+		previous_sle = self.get_previous_ledger_entry(row)
+		if previous_sle is None:
+			return flt(row.current_qty, row.precision("current_qty"))
+
+		return flt(previous_sle.get("qty_after_transaction"), row.precision("current_qty"))
+
+	def get_previous_ledger_entry(self, row):
+		"""Balance, rate and value carried just before this row's own entries, or None if it has none."""
 		reco_sle = frappe.db.get_value(
 			"Stock Ledger Entry",
 			{
@@ -1087,12 +1169,12 @@ class StockReconciliation(StockController):
 			as_dict=True,
 		)
 		if not reco_sle:
-			return flt(row.current_qty, row.precision("current_qty"))
+			return None
 
 		sle = frappe.qb.DocType("Stock Ledger Entry")
 		previous_sle = (
 			frappe.qb.from_(sle)
-			.select(sle.qty_after_transaction)
+			.select(sle.qty_after_transaction, sle.valuation_rate, sle.stock_value)
 			.where(
 				(sle.item_code == row.item_code)
 				& (sle.warehouse == row.warehouse)
@@ -1108,9 +1190,9 @@ class StockReconciliation(StockController):
 			.orderby(sle.posting_datetime, order=frappe.qb.desc)
 			.orderby(sle.creation, order=frappe.qb.desc)
 			.limit(1)
-		).run()
+		).run(as_dict=True)
 
-		return flt(previous_sle[0][0], row.precision("current_qty")) if previous_sle else 0.0
+		return previous_sle[0] if previous_sle else frappe._dict()
 
 	def submit(self):
 		if len(self.items) > 100:

erpnext/stock/doctype/stock_reconciliation/test_stock_reconciliation.py

@@ -2215,6 +2215,211 @@ class TestStockReconciliation(FrappeTestCase, StockTestMixin):
 		self.assertEqual(sles[0].qty_after_transaction, 0)
 		self.assertEqual(flt(sles[0].stock_value_difference), -100.0)
 
+	def test_adjustment_entry_clears_value_stranded_at_zero_qty(self):
+		"""bal_qty 0 with bal_val 500: the write-off has to bring the reported value to zero."""
+		from erpnext.stock.doctype.stock_entry.test_stock_entry import make_stock_entry
+		from erpnext.stock.report.stock_balance.stock_balance import execute
+
+		item_code = self.make_item("Test Stock Reco Stranded Value Non Batch").name
+		warehouse = "_Test Warehouse - _TC"
+
+		receipt = make_stock_entry(
+			item_code=item_code,
+			target=warehouse,
+			qty=10,
+			basic_rate=100,
+			posting_date=add_days(nowdate(), -3),
+		)
+		make_stock_entry(item_code=item_code, source=warehouse, qty=10, posting_date=add_days(nowdate(), -2))
+
+		# strand 500 of value: qty nets out, stock_value_difference does not
+		receipt_sle = frappe.db.get_value(
+			"Stock Ledger Entry", {"voucher_no": receipt.name, "is_cancelled": 0}, "name"
+		)
+		frappe.db.set_value(
+			"Stock Ledger Entry",
+			receipt_sle,
+			"stock_value_difference",
+			flt(frappe.db.get_value("Stock Ledger Entry", receipt_sle, "stock_value_difference")) + 500,
+			update_modified=False,
+		)
+
+		report_filters = frappe._dict(
+			{"item_code": [item_code], "warehouse": [warehouse], "company": "_Test Company"}
+		)
+
+		# this is what the user sees before the reconciliation
+		_columns, data = execute(filters=report_filters)
+		self.assertEqual(flt(data[0].get("bal_qty")), 0.0)
+		self.assertEqual(flt(data[0].get("bal_val")), 500.0)
+
+		sr = create_stock_reconciliation(
+			item_code=item_code, warehouse=warehouse, qty=0, rate=0, do_not_save=1
+		)
+		sr.items[0].allow_zero_valuation_rate = 1
+		sr.save()
+		sr.submit()
+
+		sles = frappe.get_all(
+			"Stock Ledger Entry",
+			filters={"voucher_no": sr.name, "is_cancelled": 0},
+			fields=["actual_qty", "qty_after_transaction", "stock_value_difference", "is_adjustment_entry"],
+		)
+
+		self.assertEqual(len(sles), 1)
+		self.assertEqual(sles[0].is_adjustment_entry, 1)
+		self.assertEqual(flt(sles[0].actual_qty), 0.0)
+		self.assertEqual(flt(sles[0].qty_after_transaction), 0.0)
+		self.assertEqual(flt(sles[0].stock_value_difference), -500.0)
+
+		# the report, and the GL basis behind it, both land on zero
+		# (the row drops out entirely once every figure on it is zero)
+		_columns, data = execute(filters=report_filters)
+		self.assertEqual(flt(data[0].get("bal_val")) if data else 0.0, 0.0)
+		self.assertEqual(
+			flt(get_stock_value_on(warehouses=warehouse, posting_date=nowdate(), item_code=item_code)),
+			0.0,
+		)
+
+	def _make_backdated_adjustment_scenario(self, item_name, valuation_method, backdated_qty=4):
+		"""Strand 100 of value at zero qty, write it off, then backdate a receipt before the write-off."""
+		from erpnext.stock.doctype.stock_entry.test_stock_entry import make_stock_entry
+
+		item_code = self.make_item(item_name, {"valuation_method": valuation_method}).name
+		warehouse = "_Test Warehouse - _TC"
+
+		receipt = make_stock_entry(
+			item_code=item_code,
+			target=warehouse,
+			qty=10,
+			basic_rate=100,
+			posting_date=add_days(nowdate(), -10),
+		)
+		make_stock_entry(item_code=item_code, source=warehouse, qty=10, posting_date=add_days(nowdate(), -9))
+
+		# strand 100 of value on the ledger: qty nets out, stock_value_difference does not
+		receipt_sle = frappe.db.get_value(
+			"Stock Ledger Entry", {"voucher_no": receipt.name, "is_cancelled": 0}, "name"
+		)
+		frappe.db.set_value(
+			"Stock Ledger Entry",
+			receipt_sle,
+			"stock_value_difference",
+			flt(frappe.db.get_value("Stock Ledger Entry", receipt_sle, "stock_value_difference")) + 100,
+			update_modified=False,
+		)
+
+		sr = create_stock_reconciliation(
+			item_code=item_code,
+			warehouse=warehouse,
+			qty=0,
+			rate=0,
+			posting_date=add_days(nowdate(), -5),
+			do_not_save=1,
+		)
+		sr.items[0].allow_zero_valuation_rate = 1
+		sr.save()
+		sr.submit()
+
+		self.assertTrue(
+			frappe.db.exists("Stock Ledger Entry", {"voucher_no": sr.name, "is_adjustment_entry": 1})
+		)
+
+		# a backdated receipt lands before the write-off
+		if backdated_qty:
+			make_stock_entry(
+				item_code=item_code,
+				target=warehouse,
+				qty=backdated_qty,
+				basic_rate=50,
+				posting_date=add_days(nowdate(), -7),
+			)
+
+		return item_code, warehouse, sr
+
+	def _assert_backdated_stock_survives(self, item_code, warehouse, sr):
+		adjustment_sle = frappe.db.get_value(
+			"Stock Ledger Entry",
+			{"voucher_no": sr.name, "is_cancelled": 0},
+			["qty_after_transaction", "stock_value", "stock_value_difference", "valuation_rate"],
+			as_dict=True,
+		)
+
+		# the backdated stock is carried through the adjustment entry, not wiped out by it
+		self.assertEqual(flt(adjustment_sle.qty_after_transaction), 4.0)
+		self.assertEqual(flt(adjustment_sle.stock_value), 200.0)
+		self.assertEqual(flt(adjustment_sle.valuation_rate), 50.0)
+
+		# and the write-off still lands the running ledger value on the stock value it holds
+		self.assertEqual(
+			flt(get_stock_value_on(warehouses=warehouse, posting_date=nowdate(), item_code=item_code)),
+			200.0,
+		)
+		self.assertEqual(get_stock_balance(item_code, warehouse), 4.0)
+
+	def test_adjustment_entry_does_not_zero_out_backdated_stock(self):
+		"""An adjustment entry restates value, so a backdated receipt posted before it must survive."""
+		item_code, warehouse, sr = self._make_backdated_adjustment_scenario(
+			"Test Stock Reco Backdated Adjustment", "FIFO"
+		)
+		self._assert_backdated_stock_survives(item_code, warehouse, sr)
+
+	def test_adjustment_entry_does_not_zero_out_backdated_stock_moving_average(self):
+		"""Same, through the moving average path rather than the queue."""
+		item_code, warehouse, sr = self._make_backdated_adjustment_scenario(
+			"Test Stock Reco Backdated Adjustment MA", "Moving Average"
+		)
+		self._assert_backdated_stock_survives(item_code, warehouse, sr)
+
+	def test_adjustment_row_amount_is_not_distorted_by_rate_rounding(self):
+		"""The refreshed amount comes from the ledger's stock value, not from a rounded rate."""
+		from erpnext.stock.doctype.stock_entry.test_stock_entry import make_stock_entry
+
+		item_code, warehouse, sr = self._make_backdated_adjustment_scenario(
+			"Test Stock Reco Adjustment Rounding", "FIFO", backdated_qty=0
+		)
+
+		# a backdated receipt whose value does not divide evenly into a 2 decimal rate
+		make_stock_entry(
+			item_code=item_code,
+			target=warehouse,
+			qty=10000,
+			basic_rate=1.2345,
+			posting_date=add_days(nowdate(), -7),
+		)
+
+		sr.reload()
+		row = sr.items[0]
+
+		self.assertEqual(flt(row.current_qty), 10000.0)
+		self.assertEqual(flt(row.current_amount), 12345.0)
+
+	def test_cancelling_adjustment_entry_shifts_no_qty(self):
+		"""Reversing a value-only entry must not push the preserved quantity into later entries."""
+		from erpnext.stock.stock_ledger import get_stock_reco_qty_shift
+
+		_item_code, _warehouse, sr = self._make_backdated_adjustment_scenario(
+			"Test Stock Reco Adjustment Cancel", "FIFO"
+		)
+
+		sr.reload()
+		row = sr.items[0]
+
+		# the refreshed document reports the balance the ledger carries and no quantity movement
+		self.assertEqual(flt(row.current_qty), 4.0)
+		self.assertEqual(flt(row.quantity_difference), 0.0)
+		self.assertEqual(flt(row.current_valuation_rate), 50.0)
+		self.assertEqual(flt(row.current_amount), 200.0)
+		self.assertEqual(flt(row.amount_difference), -100.0)
+
+		# the reversal built on cancellation moves nothing, so later entries are not shifted
+		sr.docstatus = 2
+		args = sr.get_sle_for_items(row)
+		args.actual_qty = -flt(args.actual_qty)  # as make_sl_entries flips it for a cancellation
+
+		self.assertEqual(flt(args.actual_qty), 0.0)
+		self.assertEqual(flt(get_stock_reco_qty_shift(args)), 0.0)
+
 
 def create_batch_item_with_batch(item_name, batch_id):
 	batch_item_doc = create_item(item_name, is_stock_item=1)

erpnext/stock/stock_ledger.py

@@ -1057,6 +1057,8 @@ class update_entries_after:
 		else:
 			if (
 				sle.voucher_type == "Stock Reconciliation"
+				# an adjustment entry counted nothing, so it must not assert a balance
+				and not sle.is_adjustment_entry
 				and not sle.batch_no
 				and not sle.has_batch_no
 				and not has_dimensions
@@ -1118,26 +1120,21 @@ class update_entries_after:
 
 		sle.stock_value_difference = stock_value_difference
 
-		if (
-			sle.is_adjustment_entry
-			and flt(sle.qty_after_transaction, self.flt_precision) == 0
-			and (
-				flt(sle.stock_value, self.currency_precision) != 0
-				or flt(sle.stock_value_difference, self.currency_precision) == 0
-			)
-		):
-			sle.stock_value_difference = (
-				get_stock_value_difference(
-					sle.item_code,
-					sle.warehouse,
-					sle.posting_date,
-					sle.posting_time,
-					voucher_detail_no=sle.voucher_detail_no,
-					creation=sle.creation,
-				)
-				* -1
+		# Re-derive the write-off on every repost: whatever brings the running sum of
+		# stock_value_difference back in line with the stock value held at this point. A non-zero
+		# difference above means the entry moved something, so it is not a write-off and is left alone.
+		if sle.is_adjustment_entry and flt(sle.stock_value_difference, self.currency_precision) == 0:
+			value_till_now = get_stock_value_difference(
+				sle.item_code,
+				sle.warehouse,
+				sle.posting_date,
+				sle.posting_time,
+				voucher_detail_no=sle.voucher_detail_no,
+				creation=sle.creation,
 			)
 
+			sle.stock_value_difference = flt(flt(sle.stock_value) - value_till_now, self.currency_precision)
+
 		sle.doctype = "Stock Ledger Entry"
 		sle.modified = now()
 		frappe.get_doc(sle).db_update()