diff --git a/erpnext/accounts/doctype/pos_profile/pos_profile.json b/erpnext/accounts/doctype/pos_profile/pos_profile.json
index fd77ff59c1b..cc0b93272e3 100644
--- a/erpnext/accounts/doctype/pos_profile/pos_profile.json
+++ b/erpnext/accounts/doctype/pos_profile/pos_profile.json
@@ -323,7 +323,37 @@
    "set_only_once": 0, 
    "translatable": 0,
    "unique": 0
-  }, 
+  },  
+  {
+   "allow_bulk_edit": 0, 
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "display_items_in_stock", 
+   "fieldtype": "Check", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_global_search": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Display Items In Stock", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  },
   {
    "allow_bulk_edit": 0, 
    "allow_on_submit": 0, 
@@ -1610,4 +1640,4 @@
  "title_field": "pos_profile_name", 
  "track_changes": 0, 
  "track_seen": 0
-}
\ No newline at end of file
+}
diff --git a/erpnext/selling/page/point_of_sale/point_of_sale.py b/erpnext/selling/page/point_of_sale/point_of_sale.py
index c25bcd30df9..ed28204f10b 100644
--- a/erpnext/selling/page/point_of_sale/point_of_sale.py
+++ b/erpnext/selling/page/point_of_sale/point_of_sale.py
@@ -14,8 +14,13 @@ def get_items(start, page_length, price_list, item_group, search_value="", pos_p
 	serial_no = ""
 	batch_no = ""
 	barcode = ""
-
+	warehouse = ""
+	display_items_in_stock = 0
 	item_code = search_value
+
+	if pos_profile:
+		warehouse, display_items_in_stock = frappe.db.get_value('POS Profile', pos_profile, ['warehouse', 'display_items_in_stock'])
+
 	if not frappe.db.exists('Item Group', item_group):
 		item_group = get_root_of('Item Group')
 
@@ -42,28 +47,60 @@ def get_items(start, page_length, price_list, item_group, search_value="", pos_p
 
 	lft, rgt = frappe.db.get_value('Item Group', item_group, ['lft', 'rgt'])
 	# locate function is used to sort by closest match from the beginning of the value
-	res = frappe.db.sql("""select i.name as item_code, i.item_name, i.image as item_image,
-		i.is_stock_item, item_det.price_list_rate, item_det.currency
-		from `tabItem` i LEFT JOIN
-			(select item_code, price_list_rate, currency from
-				`tabItem Price`	where price_list=%(price_list)s) item_det
-		ON
-			(item_det.item_code=i.name or item_det.item_code=i.variant_of)
-		where
-			i.disabled = 0 and i.has_variants = 0 and i.is_sales_item = 1 and ifnull(i.is_fixed_asset, 0) = 0
-			and i.item_group in (select name from `tabItem Group` where lft >= {lft} and rgt <= {rgt})
-			and ifnull(i.end_of_life, curdate()) >= curdate()
-			and {condition}
-		limit {start}, {page_length}""".format(start=start,
-			page_length=page_length, lft=lft, rgt=rgt, condition=condition),
-		{
-			'item_code': item_code,
-			'price_list': price_list
-		} , as_dict=1)
 
-	res = {
+
+	if display_items_in_stock == 0:
+		res = frappe.db.sql("""select i.name as item_code, i.item_name, i.image as item_image,
+			i.is_stock_item, item_det.price_list_rate, item_det.currency
+			from `tabItem` i LEFT JOIN
+				(select item_code, price_list_rate, currency from
+					`tabItem Price`	where price_list=%(price_list)s) item_det
+			ON
+				(item_det.item_code=i.name or item_det.item_code=i.variant_of)
+			where
+				i.disabled = 0 and i.has_variants = 0 and i.is_sales_item = 1
+				and i.item_group in (select name from `tabItem Group` where lft >= {lft} and rgt <= {rgt})
+		        	and {condition} limit {start}, {page_length}""".format(start=start,page_length=page_length,lft=lft, rgt=rgt, 					condition=condition),
+			{
+				'item_code': item_code,
+				'price_list': price_list
+			} , as_dict=1)
+
+		res = {
 		'items': res
-	}
+		}
+
+	elif display_items_in_stock == 1:
+		query = """select i.name as item_code, i.item_name, i.image as item_image,
+				i.is_stock_item, item_det.price_list_rate, item_det.currency
+				from `tabItem` i LEFT JOIN
+					(select item_code, price_list_rate, currency from
+						`tabItem Price`	where price_list=%(price_list)s) item_det
+				ON
+					(item_det.item_code=i.name or item_det.item_code=i.variant_of) INNER JOIN"""
+
+		if warehouse is not None:
+			query = query +  """ (select item_code,actual_qty from `tabBin` where warehouse=%(warehouse)s and actual_qty > 0 group by item_code) item_se"""
+		else:
+			query = query +  """ (select item_code,sum(actual_qty) as actual_qty from `tabBin` group by item_code) item_se"""
+
+		res = frappe.db.sql(query +  """
+			ON
+				((item_se.item_code=i.name or item_det.item_code=i.variant_of) and item_se.actual_qty>0)
+			where
+				i.disabled = 0 and i.has_variants = 0 and i.is_sales_item = 1
+				and i.item_group in (select name from `tabItem Group` where lft >= {lft} and rgt <= {rgt})
+		        	and {condition} limit {start}, {page_length}""".format
+				(start=start,page_length=page_length,lft=lft, 	rgt=rgt, condition=condition),
+			{
+				'item_code': item_code,
+				'price_list': price_list,
+				'warehouse': warehouse
+			} , as_dict=1)
+
+		res = {
+		'items': res
+		}
 
 	if serial_no:
 		res.update({
@@ -114,4 +151,4 @@ def item_group_query(doctype, txt, searchfield, start, page_len, filters):
 	return frappe.db.sql(""" select distinct name from `tabItem Group`
 			where {condition} and (name like %(txt)s) limit {start}, {page_len}"""
 		.format(condition = cond, start=start, page_len= page_len),
-			{'txt': '%%%s%%' % txt})
\ No newline at end of file
+			{'txt': '%%%s%%' % txt})