diff --git a/buying/utils.py b/buying/utils.py
index 3c8f693..23d5593 100644
--- a/buying/utils.py
+++ b/buying/utils.py
@@ -51,6 +51,9 @@
 	
 	out.supplier_part_no = _get_supplier_part_no(args, item_bean)
 	
+	if not out.warehouse:
+		out.warehouse = item_bean.doc.default_warehouse
+	
 	if out.warehouse:
 		out.projected_qty = get_projected_qty(item.name, out.warehouse)
 	
diff --git a/setup/doctype/company/company.py b/setup/doctype/company/company.py
index 54a293f..446d602 100644
--- a/setup/doctype/company/company.py
+++ b/setup/doctype/company/company.py
@@ -201,8 +201,8 @@
 		
 		for a in accounts:
 			account_name = accounts[a] + " - " + self.doc.abbr
-			if not self.doc.fields[a] and webnotes.conn.exists("Account", account_name):
-				webnotes.conn.set(self.doc, account_name)
+			if not self.doc.fields.get(a) and webnotes.conn.exists("Account", account_name):
+				webnotes.conn.set(self.doc, a, account_name)
 
 		if not self.doc.stock_adjustment_cost_center:
 				webnotes.conn.set(self.doc, "stock_adjustment_cost_center", self.doc.cost_center)
diff --git a/stock/doctype/item/item.py b/stock/doctype/item/item.py
index 09a5ce6..295bff3 100644
--- a/stock/doctype/item/item.py
+++ b/stock/doctype/item/item.py
@@ -25,6 +25,7 @@
 from webnotes.model.controller import DocListController
 
 class PriceListCurrencyMismatch(Exception): pass
+class WarehouseNotSet(Exception): pass
 
 class DocType(DocListController):
 	def autoname(self):
@@ -39,7 +40,8 @@
 	def validate(self):
 		if not self.doc.stock_uom:
 			msgprint(_("Please enter Default Unit of Measure"), raise_exception=1)
-			
+		
+		self.check_warehouse_is_set_for_stock_item()
 		self.check_stock_uom_with_bin()
 		self.validate_conversion_factor()
 		self.add_default_uom_in_conversion_factor_table()
@@ -60,6 +62,11 @@
 		self.validate_name_with_item_group()
 		self.update_website()
 
+	def check_warehouse_is_set_for_stock_item(self):
+		if self.doc.is_stock_item=="Yes" and not self.doc.default_warehouse:
+			webnotes.msgprint(_("Default Warehouse is mandatory for Stock Item."),
+				raise_exception=WarehouseNotSet)
+			
 	def add_default_uom_in_conversion_factor_table(self):
 		uom_conv_list = [d.uom for d in self.doclist.get({"parentfield": "uom_conversion_details"})]
 		if self.doc.stock_uom not in uom_conv_list:
diff --git a/stock/doctype/item/item.txt b/stock/doctype/item/item.txt
index 1273b12..d5fcb9e 100644
--- a/stock/doctype/item/item.txt
+++ b/stock/doctype/item/item.txt
@@ -2,7 +2,7 @@
  {
   "creation": "2013-05-03 10:45:46", 
   "docstatus": 0, 
-  "modified": "2013-06-26 21:39:46", 
+  "modified": "2013-07-01 11:45:59", 
   "modified_by": "Administrator", 
   "owner": "Administrator"
  }, 
@@ -205,11 +205,11 @@
  }, 
  {
   "depends_on": "eval:doc.is_stock_item==\"Yes\"", 
-  "description": "Mandatory if Stock Item is \"Yes\"", 
+  "description": "Mandatory if Stock Item is \"Yes\". Also the default warehouse where reserved quantity is set from Sales Order.", 
   "doctype": "DocField", 
   "fieldname": "default_warehouse", 
   "fieldtype": "Link", 
-  "label": "Default Reserved Warehouse", 
+  "label": "Default Warehouse", 
   "oldfieldname": "default_warehouse", 
   "oldfieldtype": "Link", 
   "options": "Warehouse", 
diff --git a/stock/doctype/item/test_item.py b/stock/doctype/item/test_item.py
index 2145631..35cad9d 100644
--- a/stock/doctype/item/test_item.py
+++ b/stock/doctype/item/test_item.py
@@ -35,6 +35,13 @@
 		item_price = item.doclist.get({"doctype": "Item Price"})[0].ref_currency="USD"
 		self.assertRaises(PriceListCurrencyMismatch, item.insert)
 
+	def test_default_warehouse(self):
+		from stock.doctype.item.item import WarehouseNotSet
+		item = webnotes.bean(copy=test_records[0])
+		item.doc.is_stock_item = "Yes"
+		item.doc.default_warehouse = None
+		self.assertRaises(WarehouseNotSet, item.insert)
+		
 
 test_records = [
 	[{
@@ -77,6 +84,7 @@
 		"item_name": "_Test Item Home Desktop 100",
 		"description": "_Test Item Home Desktop 100",
 		"item_group": "_Test Item Group Desktops",
+		"default_warehouse": "_Test Warehouse",
 		"is_stock_item": "Yes",
 		"is_asset_item": "No",
 		"has_batch_no": "No",
@@ -101,6 +109,7 @@
 		"item_name": "_Test Item Home Desktop 200",
 		"description": "_Test Item Home Desktop 200",
 		"item_group": "_Test Item Group Desktops",
+		"default_warehouse": "_Test Warehouse",
 		"is_stock_item": "Yes",
 		"is_asset_item": "No",
 		"has_batch_no": "No",
@@ -140,6 +149,7 @@
 		"description": "_Test FG Item",
 		"item_group": "_Test Item Group Desktops",
 		"is_stock_item": "Yes",
+		"default_warehouse": "_Test Warehouse",
 		"is_asset_item": "No",
 		"has_batch_no": "No",
 		"has_serial_no": "No",
@@ -178,6 +188,7 @@
 		"description": "_Test Serialized Item",
 		"item_group": "_Test Item Group Desktops",
 		"is_stock_item": "Yes",
+		"default_warehouse": "_Test Warehouse",
 		"is_asset_item": "No",
 		"has_batch_no": "No",
 		"has_serial_no": "Yes",