diff --git a/erpnext/patches/repair_tools/set_stock_balance_as_per_serial_no.py b/erpnext/patches/repair_tools/set_stock_balance_as_per_serial_no.py
new file mode 100644
index 0000000..e9a717d
--- /dev/null
+++ b/erpnext/patches/repair_tools/set_stock_balance_as_per_serial_no.py
@@ -0,0 +1,13 @@
+# Copyright (c) 2013, Web Notes Technologies Pvt. Ltd. and Contributors
+# License: GNU General Public License v3. See license.txt
+
+from __future__ import unicode_literals
+import frappe
+
+def execute():
+	from erpnext.utilities.repost_stock import set_stock_balance_as_per_serial_no
+	frappe.db.auto_commit_on_many_writes = 1
+
+	set_stock_balance_as_per_serial_no()
+
+	frappe.db.auto_commit_on_many_writes = 0
diff --git a/erpnext/stock/doctype/stock_ledger/stock_ledger.py b/erpnext/stock/doctype/stock_ledger/stock_ledger.py
index f566e05..b5a6bc8 100644
--- a/erpnext/stock/doctype/stock_ledger/stock_ledger.py
+++ b/erpnext/stock/doctype/stock_ledger/stock_ledger.py
@@ -3,47 +3,7 @@
 
 from __future__ import unicode_literals
 import frappe
-
-from frappe.utils import flt, now
 from frappe.model.document import Document
 
 class StockLedger(Document):
-
-	def update_stock(self, values, is_amended = 'No'):
-		for v in values:
-			sle_id = ''
-
-			# reverse quantities for cancel
-			if v.get('is_cancelled') == 'Yes':
-				v['actual_qty'] = -flt(v['actual_qty'])
-				# cancel matching entry
-				frappe.db.sql("""update `tabStock Ledger Entry` set is_cancelled='Yes',
-					modified=%s, modified_by=%s
-					where voucher_no=%s and voucher_type=%s""",
-					(now(), frappe.session.user, v['voucher_no'], v['voucher_type']))
-
-			if v.get("actual_qty"):
-				sle_id = self.make_entry(v)
-
-			args = v.copy()
-			args.update({
-				"sle_id": sle_id,
-				"is_amended": is_amended
-			})
-
-			frappe.get_doc('Warehouse', v["warehouse"]).update_bin(args)
-
-
-	def make_entry(self, args):
-		args.update({"doctype": "Stock Ledger Entry"})
-		sle = frappe.get_doc(args)
-		sle.ignore_permissions = 1
-		sle.insert()
-		return sle.name
-
-	def repost(self):
-		"""
-		Repost everything!
-		"""
-		for wh in frappe.db.sql("select name from tabWarehouse"):
-			frappe.get_doc('Warehouse', wh[0]).repost_stock()
+	pass
diff --git a/erpnext/utilities/repost_stock.py b/erpnext/utilities/repost_stock.py
index 507974b..e4028b6 100644
--- a/erpnext/utilities/repost_stock.py
+++ b/erpnext/utilities/repost_stock.py
@@ -4,32 +4,34 @@
 from __future__ import unicode_literals
 import frappe
 
-from frappe.utils import flt
-
+from frappe.utils import flt, cstr, nowdate, nowtime
+from erpnext.stock.utils import update_bin
+from erpnext.stock.stock_ledger import update_entries_after
+from erpnext.accounts.utils import get_fiscal_year
 
 def repost(allow_negative_stock=False):
 	"""
 	Repost everything!
 	"""
 	frappe.db.auto_commit_on_many_writes = 1
-	
+
 	if allow_negative_stock:
 		frappe.db.set_default("allow_negative_stock", 1)
-	
-	for d in frappe.db.sql("""select distinct item_code, warehouse from 
+
+	for d in frappe.db.sql("""select distinct item_code, warehouse from
 		(select item_code, warehouse from tabBin
 		union
 		select item_code, warehouse from `tabStock Ledger Entry`) a"""):
 			repost_stock(d[0], d[1], allow_negative_stock)
-			
+
 	if allow_negative_stock:
-		frappe.db.set_default("allow_negative_stock", 
+		frappe.db.set_default("allow_negative_stock",
 			frappe.db.get_value("Stock Settings", None, "allow_negative_stock"))
 	frappe.db.auto_commit_on_many_writes = 0
 
 def repost_stock(item_code, warehouse):
 	repost_actual_qty(item_code, warehouse)
-	
+
 	if item_code and warehouse:
 		update_bin(item_code, warehouse, {
 			"reserved_qty": get_reserved_qty(item_code, warehouse),
@@ -39,17 +41,16 @@
 		})
 
 def repost_actual_qty(item_code, warehouse):
-	from erpnext.stock.stock_ledger import update_entries_after
 	try:
 		update_entries_after({ "item_code": item_code, "warehouse": warehouse })
 	except:
 		pass
-	
+
 def get_reserved_qty(item_code, warehouse):
 	reserved_qty = frappe.db.sql("""
-		select 
+		select
 			sum((dnpi_qty / so_item_qty) * (so_item_qty - so_item_delivered_qty))
-		from 
+		from
 			(
 				(select
 					qty as dnpi_qty,
@@ -60,9 +61,9 @@
 					(
 						select ifnull(delivered_qty, 0) from `tabSales Order Item`
 						where name = dnpi.parent_detail_docname
-					) as so_item_delivered_qty, 
+					) as so_item_delivered_qty,
 					parent, name
-				from 
+				from
 				(
 					select qty, parent_detail_docname, parent, name
 					from `tabPacked Item` dnpi_in
@@ -76,45 +77,45 @@
 				(select qty as dnpi_qty, qty as so_item_qty,
 					ifnull(delivered_qty, 0) as so_item_delivered_qty, parent, name
 				from `tabSales Order Item` so_item
-				where item_code = %s and warehouse = %s 
+				where item_code = %s and reserved_warehouse = %s
 				and exists(select * from `tabSales Order` so
-					where so.name = so_item.parent and so.docstatus = 1 
+					where so.name = so_item.parent and so.docstatus = 1
 					and so.status != 'Stopped'))
 			) tab
-		where 
+		where
 			so_item_qty >= so_item_delivered_qty
 	""", (item_code, warehouse, item_code, warehouse))
 
 	return flt(reserved_qty[0][0]) if reserved_qty else 0
-	
+
 def get_indented_qty(item_code, warehouse):
 	indented_qty = frappe.db.sql("""select sum(pr_item.qty - ifnull(pr_item.ordered_qty, 0))
 		from `tabMaterial Request Item` pr_item, `tabMaterial Request` pr
-		where pr_item.item_code=%s and pr_item.warehouse=%s 
-		and pr_item.qty > ifnull(pr_item.ordered_qty, 0) and pr_item.parent=pr.name 
+		where pr_item.item_code=%s and pr_item.warehouse=%s
+		and pr_item.qty > ifnull(pr_item.ordered_qty, 0) and pr_item.parent=pr.name
 		and pr.status!='Stopped' and pr.docstatus=1""", (item_code, warehouse))
-		
+
 	return flt(indented_qty[0][0]) if indented_qty else 0
 
 def get_ordered_qty(item_code, warehouse):
 	ordered_qty = frappe.db.sql("""
 		select sum((po_item.qty - ifnull(po_item.received_qty, 0))*po_item.conversion_factor)
 		from `tabPurchase Order Item` po_item, `tabPurchase Order` po
-		where po_item.item_code=%s and po_item.warehouse=%s 
-		and po_item.qty > ifnull(po_item.received_qty, 0) and po_item.parent=po.name 
+		where po_item.item_code=%s and po_item.warehouse=%s
+		and po_item.qty > ifnull(po_item.received_qty, 0) and po_item.parent=po.name
 		and po.status!='Stopped' and po.docstatus=1""", (item_code, warehouse))
-		
+
 	return flt(ordered_qty[0][0]) if ordered_qty else 0
-			
+
 def get_planned_qty(item_code, warehouse):
 	planned_qty = frappe.db.sql("""
-		select sum(ifnull(qty, 0) - ifnull(produced_qty, 0)) from `tabProduction Order` 
+		select sum(ifnull(qty, 0) - ifnull(produced_qty, 0)) from `tabProduction Order`
 		where production_item = %s and fg_warehouse = %s and status != "Stopped"
 		and docstatus=1 and ifnull(qty, 0) > ifnull(produced_qty, 0)""", (item_code, warehouse))
 
 	return flt(planned_qty[0][0]) if planned_qty else 0
-	
-	
+
+
 def update_bin(item_code, warehouse, qty_dict=None):
 	from erpnext.stock.utils import get_bin
 	bin = get_bin(item_code, warehouse)
@@ -123,9 +124,69 @@
 		if flt(bin.get(fld)) != flt(val):
 			bin.set(fld, flt(val))
 			mismatch = True
-			
+
 	if mismatch:
 		bin.projected_qty = flt(bin.actual_qty) + flt(bin.ordered_qty) + \
 			flt(bin.indented_qty) + flt(bin.planned_qty) - flt(bin.reserved_qty)
-	
-		bin.save()
\ No newline at end of file
+
+		bin.save()
+
+def set_stock_balance_as_per_serial_no(item_code=None, posting_date=None, posting_time=None,
+	 	fiscal_year=None):
+	if not posting_date: posting_date = nowdate()
+	if not posting_time: posting_time = nowtime()
+	if not fiscal_year: fiscal_year = get_fiscal_year(posting_date)[0]
+
+	condition = " and item.name='%s'" % item_code.replace("'", "\'") if item_code else ""
+
+	bin = frappe.db.sql("""select bin.item_code, bin.warehouse, bin.actual_qty, item.stock_uom
+		from `tabBin` bin, tabItem item
+		where bin.item_code = item.name and item.has_serial_no = 'Yes' %s""" % condition)
+
+	for d in bin:
+		serial_nos = frappe.db.sql("""select count(name) from `tabSerial No`
+			where item_code=%s and warehouse=%s and status = 'Available' and docstatus < 2""", (d[0], d[1]))
+
+		if serial_nos and flt(serial_nos[0][0]) != flt(d[2]):
+			print d[0], d[1], d[2], serial_nos[0][0]
+
+		sle = frappe.db.sql("""select valuation_rate, company from `tabStock Ledger Entry`
+			where item_code = %s and warehouse = %s and ifnull(is_cancelled, 'No') = 'No'
+			order by posting_date desc limit 1""", (d[0], d[1]))
+
+		sle_dict = {
+			'doctype'					: 'Stock Ledger Entry',
+			'item_code'					: d[0],
+			'warehouse'					: d[1],
+			'transaction_date'	 		: nowdate(),
+			'posting_date'				: posting_date,
+			'posting_time'			 	: posting_time,
+			'voucher_type'			 	: 'Stock Reconciliation (Manual)',
+			'voucher_no'				: '',
+			'voucher_detail_no'			: '',
+			'actual_qty'				: flt(serial_nos[0][0]) - flt(d[2]),
+			'stock_uom'					: d[3],
+			'incoming_rate'				: sle and flt(serial_nos[0][0]) > flt(d[2]) and flt(sle[0][0]) or 0,
+			'company'					: sle and cstr(sle[0][1]) or 0,
+			'fiscal_year'				: fiscal_year,
+			'is_cancelled'			 	: 'No',
+			'batch_no'					: '',
+			'serial_no'					: ''
+		}
+
+		sle_doc = frappe.get_doc(sle_dict)
+		sle_doc.insert()
+
+		args = sle_dict.copy()
+		args.update({
+			"sle_id": sle_doc.name,
+			"is_amended": 'No'
+		})
+
+		update_bin(args)
+		update_entries_after({
+			"item_code": d[0],
+			"warehouse": d[1],
+			"posting_date": posting_date,
+			"posting_time": posting_time
+		})