fix: FIFO queue checks and incorrect entries filter in stock ledger reports

- 'Show Incorrect Entries' always returned an empty result (regression
  from #43619); now returns entries from one row before the first
  incorrect one
- FIFO queue columns were computed for serialized/batched SLEs that
  don't maintain a stock queue, showing false differences; left empty
  for such rows
- compare value/valuation differences at currency precision, qty at
  float precision

(cherry picked from commit 94ab09e4a3)

# Conflicts:
#	erpnext/stock/report/stock_ledger_invariant_check/test_stock_ledger_invariant_check.py

erpnext/stock/report/stock_ledger_invariant_check/stock_ledger_invariant_check.py

@@ -20,6 +20,7 @@ SLE_FIELDS = (
 	"outgoing_rate",
 	"stock_queue",
 	"batch_no",
+	"serial_no",
 	"stock_value",
 	"stock_value_difference",
 	"valuation_rate",
@@ -52,16 +53,16 @@ def add_invariant_check_fields(sles, filters):
 	balance_qty = 0.0
 	balance_stock_value = 0.0
 
-	incorrect_idx = 0
+	incorrect_idx = None
-	precision = frappe.get_precision("Stock Ledger Entry", "actual_qty")
+	float_precision = cint(frappe.db.get_single_value("System Settings", "float_precision")) or 3
+	currency_precision = (
+		cint(frappe.db.get_single_value("System Settings", "currency_precision")) or float_precision
+	)
 	for idx, sle in enumerate(sles):
-		queue = json.loads(sle.stock_queue) if sle.stock_queue else []
+		if sle.batch_no:
-
+			sle.use_batchwise_valuation = frappe.db.get_value(
-		fifo_qty = 0.0
+				"Batch", sle.batch_no, "use_batchwise_valuation", cache=True
-		fifo_value = 0.0
+			)
-		for qty, rate in queue:
-			fifo_qty += qty
-			fifo_value += qty * rate
 
 		if sle.actual_qty < 0:
 			sle.consumption_rate = sle.stock_value_difference / sle.actual_qty
@@ -77,57 +78,66 @@ def add_invariant_check_fields(sles, filters):
 			if balance_qty is None:
 				balance_qty = sle.qty_after_transaction
 
-		sle.fifo_queue_qty = fifo_qty
-		sle.fifo_stock_value = fifo_value
-		sle.fifo_valuation_rate = fifo_value / fifo_qty if fifo_qty else None
 		sle.balance_value_by_qty = (
 			sle.stock_value / sle.qty_after_transaction if sle.qty_after_transaction else None
 		)
 		sle.expected_qty_after_transaction = balance_qty
 		sle.stock_value_from_diff = balance_stock_value
 
-		# set difference fields
 		sle.difference_in_qty = sle.qty_after_transaction - sle.expected_qty_after_transaction
-		sle.fifo_qty_diff = sle.qty_after_transaction - fifo_qty
-		sle.fifo_value_diff = sle.stock_value - fifo_value
-		sle.fifo_valuation_diff = (
-			sle.valuation_rate - sle.fifo_valuation_rate if sle.fifo_valuation_rate else None
-		)
 		sle.valuation_diff = (
 			sle.valuation_rate - sle.balance_value_by_qty if sle.balance_value_by_qty else None
 		)
 		sle.diff_value_diff = sle.stock_value_from_diff - sle.stock_value
 
-		if not incorrect_idx and filters.get("show_incorrect_entries"):
+		if maintains_fifo_queue(sle):
-			if is_sle_has_correct_data(sle, precision):
+			add_fifo_fields(sle, sles[idx - 1] if idx else None)
-				continue
-			else:
-				incorrect_idx = idx
 
-		if idx > 0:
+		if incorrect_idx is None and not is_sle_has_correct_data(sle, float_precision, currency_precision):
-			sle.fifo_stock_diff = sle.fifo_stock_value - sles[idx - 1].fifo_stock_value
+			incorrect_idx = idx
-			sle.fifo_difference_diff = sle.fifo_stock_diff - sle.stock_value_difference
-
-		if sle.batch_no:
-			sle.use_batchwise_valuation = frappe.db.get_value(
-				"Batch", sle.batch_no, "use_batchwise_valuation", cache=True
-			)
 
 	if filters.get("show_incorrect_entries"):
-		if incorrect_idx > 0:
+		if incorrect_idx is None:
-			sles = sles[cint(incorrect_idx) - 1 :]
+			return []
-
+		return sles[max(incorrect_idx - 1, 0) :]
-		return []
 
 	return sles
 
 
-def is_sle_has_correct_data(sle, precision):
+def maintains_fifo_queue(sle):
-	if flt(sle.difference_in_qty, precision) != 0.0 or flt(sle.diff_value_diff, precision) != 0:
+	# no queue is maintained for serialized/batchwise-valued stock
-		print(flt(sle.difference_in_qty, precision), flt(sle.diff_value_diff, precision))
+	return not (
-		return False
+		sle.serial_and_batch_bundle or sle.serial_no or (sle.batch_no and sle.use_batchwise_valuation)
+	)
 
-	return True
+
+def add_fifo_fields(sle, prev_sle):
+	queue = json.loads(sle.stock_queue) if sle.stock_queue else []
+
+	fifo_qty = 0.0
+	fifo_value = 0.0
+	for qty, rate in queue:
+		fifo_qty += qty
+		fifo_value += qty * rate
+
+	sle.fifo_queue_qty = fifo_qty
+	sle.fifo_stock_value = fifo_value
+	sle.fifo_valuation_rate = fifo_value / fifo_qty if fifo_qty else None
+	sle.fifo_qty_diff = sle.qty_after_transaction - fifo_qty
+	sle.fifo_value_diff = sle.stock_value - fifo_value
+	sle.fifo_valuation_diff = (
+		sle.valuation_rate - sle.fifo_valuation_rate if sle.fifo_valuation_rate else None
+	)
+	if prev_sle and prev_sle.fifo_stock_value is not None:
+		sle.fifo_stock_diff = sle.fifo_stock_value - prev_sle.fifo_stock_value
+		sle.fifo_difference_diff = sle.fifo_stock_diff - sle.stock_value_difference
+
+
+def is_sle_has_correct_data(sle, float_precision, currency_precision):
+	return (
+		flt(sle.difference_in_qty, float_precision) == 0.0
+		and flt(sle.diff_value_diff, currency_precision) == 0.0
+	)
 
 
 def get_columns():

erpnext/stock/report/stock_ledger_invariant_check/test_stock_ledger_invariant_check.py

@@ -0,0 +1,76 @@
+# Copyright (c) 2026, Frappe Technologies Pvt. Ltd. and Contributors
+# See license.txt
+
+import frappe
+
+from erpnext.stock.doctype.stock_entry.stock_entry_utils import make_stock_entry
+from erpnext.stock.report.stock_ledger_invariant_check.stock_ledger_invariant_check import execute
+from erpnext.tests.utils import ERPNextTestSuite
+
+WAREHOUSE = "Stores - _TC"
+COMPANY = "_Test Company"
+ITEM = "_Test Item"
+
+
+class TestStockLedgerInvariantCheck(ERPNextTestSuite):
+	def run_report(self, **extra):
+		filters = frappe._dict({"company": COMPANY, "warehouse": WAREHOUSE})
+		filters.update(extra)
+		return execute(filters)[1]
+
+	def make_movements(self) -> str:
+		frappe.db.set_value("Item", ITEM, "valuation_method", "FIFO")
+		make_stock_entry(item_code=ITEM, to_warehouse=WAREHOUSE, qty=10, rate=100, posting_date="2026-06-01")
+		make_stock_entry(item_code=ITEM, to_warehouse=WAREHOUSE, qty=5, rate=120, posting_date="2026-06-02")
+		make_stock_entry(item_code=ITEM, from_warehouse=WAREHOUSE, qty=4, rate=0, posting_date="2026-06-03")
+		return ITEM
+
+	def test_diagnostic_rows_have_no_discrepancy(self):
+		item = self.make_movements()
+
+		data = self.run_report(item_code=item)
+
+		self.assertEqual(len(data), 3)
+		for row in data:
+			self.assertLess(abs(row.difference_in_qty), 0.01)
+			self.assertLess(abs(row.fifo_qty_diff), 0.01)
+			self.assertLess(abs(row.diff_value_diff), 0.01)
+
+	def test_running_balance_matches(self):
+		item = self.make_movements()
+
+		data = self.run_report(item_code=item)
+
+		self.assertEqual(data[-1].qty_after_transaction, 11)
+
+	def test_show_incorrect_entries(self):
+		item = self.make_movements()
+
+		self.assertEqual(self.run_report(item_code=item, show_incorrect_entries=1), [])
+
+		sle = frappe.get_last_doc(
+			"Stock Ledger Entry", {"item_code": item, "warehouse": WAREHOUSE, "is_cancelled": 0}
+		)
+		frappe.db.set_value(
+			"Stock Ledger Entry", sle.name, "qty_after_transaction", sle.qty_after_transaction + 5
+		)
+
+		data = self.run_report(item_code=item, show_incorrect_entries=1)
+		self.assertEqual(len(data), 2)  # incorrect entry + one before it for context
+		self.assertEqual(data[-1].name, sle.name)
+
+	def test_batch_item_skips_fifo_queue_checks(self):
+		from erpnext.stock.doctype.item.test_item import make_item
+
+		item = make_item(
+			properties={"has_batch_no": 1, "create_new_batch": 1, "batch_number_series": "SLIC-BAT-.####"}
+		).name
+		make_stock_entry(item_code=item, to_warehouse=WAREHOUSE, qty=10, rate=100)
+
+		data = self.run_report(item_code=item)
+		self.assertTrue(data)
+		for row in data:
+			self.assertIsNone(row.fifo_qty_diff)
+			self.assertIsNone(row.fifo_value_diff)
+
+		self.assertEqual(self.run_report(item_code=item, show_incorrect_entries=1), [])

erpnext/stock/report/stock_ledger_variance/stock_ledger_variance.py

@@ -205,7 +205,10 @@ def get_data(filters=None):
 
 	data = []
 	if item_warehouse_map:
-		precision = cint(frappe.db.get_single_value("System Settings", "float_precision"))
+		float_precision = cint(frappe.db.get_single_value("System Settings", "float_precision")) or 3
+		currency_precision = (
+			cint(frappe.db.get_single_value("System Settings", "currency_precision")) or float_precision
+		)
 
 		for item_warehouse in item_warehouse_map:
 			report_data = stock_ledger_invariant_check(item_warehouse)
@@ -215,7 +218,11 @@ def get_data(filters=None):
 
 			for row in report_data:
 				if has_difference(
-					row, precision, filters.difference_in, item_warehouse.valuation_method or valuation_method
+					row,
+					float_precision,
+					currency_precision,
+					filters.difference_in,
+					item_warehouse.valuation_method or valuation_method,
 				):
 					row.update(
 						{
@@ -261,23 +268,26 @@ def get_item_warehouse_combinations(filters: dict | None = None) -> dict:
 	return query.run(as_dict=1)
 
 
-def has_difference(row, precision, difference_in, valuation_method):
+def has_difference(row, float_precision, currency_precision, difference_in, valuation_method):
 	if valuation_method == "Moving Average":
-		qty_diff = flt(row.difference_in_qty, precision)
+		qty_diff = flt(row.difference_in_qty, float_precision)
-		value_diff = flt(row.diff_value_diff, precision)
+		value_diff = flt(row.diff_value_diff, currency_precision)
-		valuation_diff = flt(row.valuation_diff, precision)
+		valuation_diff = flt(row.valuation_diff, currency_precision)
 	else:
-		qty_diff = flt(row.difference_in_qty, precision)
+		qty_diff = flt(row.difference_in_qty, float_precision)
-		value_diff = flt(row.diff_value_diff, precision)
+		value_diff = flt(row.diff_value_diff, currency_precision)
 
 		if row.stock_queue and json.loads(row.stock_queue):
 			value_diff = value_diff or (
-				flt(row.fifo_value_diff, precision) or flt(row.fifo_difference_diff, precision)
+				flt(row.fifo_value_diff, currency_precision)
+				or flt(row.fifo_difference_diff, currency_precision)
 			)
 
-			qty_diff = qty_diff or flt(row.fifo_qty_diff, precision)
+			qty_diff = qty_diff or flt(row.fifo_qty_diff, float_precision)
 
-		valuation_diff = flt(row.valuation_diff, precision) or flt(row.fifo_valuation_diff, precision)
+		valuation_diff = flt(row.valuation_diff, currency_precision) or flt(
+			row.fifo_valuation_diff, currency_precision
+		)
 
 	if difference_in == "Qty" and qty_diff:
 		return True