diff --git a/accounts/doctype/account/account.js b/accounts/doctype/account/account.js
index 6b06572..99d8d58 100644
--- a/accounts/doctype/account/account.js
+++ b/accounts/doctype/account/account.js
@@ -32,10 +32,10 @@
 	} else {
 		// credit days and type if customer or supplier
 		cur_frm.set_intro(null);
-		cur_frm.toggle_display(['credit_days', 'credit_limit', 'master_name'], 
-			in_list(['Customer', 'Supplier'], doc.master_type));
-
-		// hide tax_rate
+		cur_frm.toggle_display(['credit_days', 'credit_limit'], in_list(['Customer', 'Supplier'], 
+			doc.master_type));
+		
+		cur_frm.cscript.master_type(doc, cdt, cdn);
 		cur_frm.cscript.account_type(doc, cdt, cdn);
 
 		// show / hide convert buttons
@@ -44,7 +44,10 @@
 }
 
 cur_frm.cscript.master_type = function(doc, cdt, cdn) {
-	cur_frm.toggle_display(['credit_days', 'credit_limit', 'master_name'], 
+	cur_frm.toggle_display(['credit_days', 'credit_limit'], in_list(['Customer', 'Supplier'], 
+		doc.master_type));
+		
+	cur_frm.toggle_display('master_name', doc.account_type=='Warehouse' || 
 		in_list(['Customer', 'Supplier'], doc.master_type));
 }
 
@@ -58,10 +61,10 @@
 // -----------------------------------------
 cur_frm.cscript.account_type = function(doc, cdt, cdn) {
 	if(doc.group_or_ledger=='Ledger') {
-		cur_frm.toggle_display(['tax_rate'], 
-			doc.account_type == 'Tax');
-		cur_frm.toggle_display(['master_type', 'master_name'], 
-			cstr(doc.account_type)=='');		
+		cur_frm.toggle_display(['tax_rate'], doc.account_type == 'Tax');
+		cur_frm.toggle_display('master_type', cstr(doc.account_type)=='');
+		cur_frm.toggle_display('master_name', doc.account_type=='Warehouse' || 
+			in_list(['Customer', 'Supplier'], doc.master_type));
 	}
 }
 
@@ -109,11 +112,15 @@
 }
 
 cur_frm.fields_dict['master_name'].get_query = function(doc) {
-	if (doc.master_type) {
+	if (doc.master_type || doc.account_type=="Warehouse") {
+		var dt = doc.master_type || "Warehouse";
 		return {
-			doctype: doc.master_type,
+			doctype: dt,
 			query: "accounts.doctype.account.account.get_master_name",
-			filters: {	"master_type": doc.master_type }
+			filters: {
+				"master_type": dt,
+				"company": doc.company
+			}
 		}
 	}
 }
diff --git a/accounts/doctype/account/account.py b/accounts/doctype/account/account.py
index d3d467f..3d305d3 100644
--- a/accounts/doctype/account/account.py
+++ b/accounts/doctype/account/account.py
@@ -4,7 +4,7 @@
 from __future__ import unicode_literals
 import webnotes
 
-from webnotes.utils import flt, fmt_money
+from webnotes.utils import flt, fmt_money, cstr, cint
 from webnotes import msgprint, _
 
 sql = webnotes.conn.sql
@@ -16,13 +16,25 @@
 		self.nsm_parent_field = 'parent_account'
 
 	def autoname(self):
-		"""Append abbreviation to company on naming"""
 		self.doc.name = self.doc.account_name.strip() + ' - ' + \
 			webnotes.conn.get_value("Company", self.doc.company, "abbr")
 
 	def get_address(self):
-		address = webnotes.conn.get_value(self.doc.master_type, self.doc.master_name, "address")
-		return {'address': address}
+		return {
+			'address': webnotes.conn.get_value(self.doc.master_type, 
+				self.doc.master_name, "address")
+		}
+		
+	def validate(self): 
+		self.validate_master_name()
+		self.validate_parent()
+		self.validate_duplicate_account()
+		self.validate_root_details()
+		self.validate_mandatory()
+		self.validate_warehouse_account()
+	
+		if not self.doc.parent_account:
+			self.doc.parent_account = ''
 		
 	def validate_master_name(self):
 		"""Remind to add master name"""
@@ -109,16 +121,26 @@
 			msgprint("Debit or Credit field is mandatory", raise_exception=1)
 		if not self.doc.is_pl_account:
 			msgprint("Is PL Account field is mandatory", raise_exception=1)
+			
+	def validate_warehouse_account(self):
+		if not cint(webnotes.defaults.get_global_default("auto_accounting_for_stock")):
+			return
+			
+		if self.doc.account_type == "Warehouse":
+			old_warehouse = cstr(webnotes.conn.get_value("Account", self.doc.name, "master_name"))
+			if old_warehouse != cstr(self.doc.master_name):
+				if old_warehouse:
+					self.validate_warehouse(old_warehouse)
+				if self.doc.master_name:
+					self.validate_warehouse(self.doc.master_name)
+				else:
+					webnotes.throw(_("Master Name is mandatory if account type is Warehouse"))
+		
+	def validate_warehouse(self, warehouse):
+		if webnotes.conn.get_value("Stock Ledger Entry", {"warehouse": warehouse}):
+			webnotes.throw(_("Stock transactions exist against warehouse ") + warehouse + 
+				_(" .You can not assign / modify / remove Master Name"))
 
-	def validate(self): 
-		self.validate_master_name()
-		self.validate_parent()
-		self.validate_duplicate_account()
-		self.validate_root_details()
-		self.validate_mandatory()
-	
-		if not self.doc.parent_account:
-			self.doc.parent_account = ''
 
 	def update_nsm_model(self):
 		"""update lft, rgt indices for nested set model"""
@@ -198,9 +220,11 @@
 		return " - ".join(parts)
 
 def get_master_name(doctype, txt, searchfield, start, page_len, filters):
-	return webnotes.conn.sql("""select name from `tab%s` where %s like %s 
+	conditions = (" and company='%s'"% filters["company"]) if doctype == "Warehouse" else ""
+		
+	return webnotes.conn.sql("""select name from `tab%s` where %s like %s %s
 		order by name limit %s, %s""" %
-		(filters["master_type"], searchfield, "%s", "%s", "%s"), 
+		(filters["master_type"], searchfield, "%s", conditions, "%s", "%s"), 
 		("%%%s%%" % txt, start, page_len), as_list=1)
 		
 def get_parent_account(doctype, txt, searchfield, start, page_len, filters):
diff --git a/accounts/doctype/account/account.txt b/accounts/doctype/account/account.txt
index 7a6ebf8..87006f3 100644
--- a/accounts/doctype/account/account.txt
+++ b/accounts/doctype/account/account.txt
@@ -2,7 +2,7 @@
  {
   "creation": "2013-01-30 12:49:46", 
   "docstatus": 0, 
-  "modified": "2013-07-05 14:23:30", 
+  "modified": "2013-09-16 12:21:10", 
   "modified_by": "Administrator", 
   "owner": "Administrator"
  }, 
@@ -162,7 +162,7 @@
   "label": "Account Type", 
   "oldfieldname": "account_type", 
   "oldfieldtype": "Select", 
-  "options": "\nFixed Asset Account\nBank or Cash\nExpense Account\nTax\nIncome Account\nChargeable", 
+  "options": "\nFixed Asset Account\nBank or Cash\nExpense Account\nTax\nIncome Account\nChargeable\nWarehouse", 
   "permlevel": 0, 
   "search_index": 0
  }, 
diff --git a/accounts/doctype/accounts_settings/accounts_settings.py b/accounts/doctype/accounts_settings/accounts_settings.py
index b18f14d..0d106e8 100644
--- a/accounts/doctype/accounts_settings/accounts_settings.py
+++ b/accounts/doctype/accounts_settings/accounts_settings.py
@@ -13,5 +13,9 @@
 		self.doc, self.doclist = d, dl
 
 	def on_update(self):
-		for key in ["auto_accounting_for_stock"]:
-			webnotes.conn.set_default(key, self.doc.fields.get(key, ''))
+		webnotes.conn.set_default("auto_accounting_for_stock", self.doc.auto_accounting_for_stock)
+		
+		if self.doc.auto_accounting_for_stock:
+			for wh in webnotes.conn.sql("select name from `tabWarehouse`"):
+				wh_bean = webnotes.bean("Warehouse", wh[0])
+				wh_bean.save()
\ No newline at end of file
diff --git a/accounts/doctype/accounts_settings/accounts_settings.txt b/accounts/doctype/accounts_settings/accounts_settings.txt
index 9dbed26..868b660 100644
--- a/accounts/doctype/accounts_settings/accounts_settings.txt
+++ b/accounts/doctype/accounts_settings/accounts_settings.txt
@@ -2,7 +2,7 @@
  {
   "creation": "2013-06-24 15:49:57", 
   "docstatus": 0, 
-  "modified": "2013-08-28 18:55:43", 
+  "modified": "2013-09-16 14:24:39", 
   "modified_by": "Administrator", 
   "owner": "Administrator"
  }, 
@@ -44,7 +44,7 @@
   "doctype": "DocField", 
   "fieldname": "auto_accounting_for_stock", 
   "fieldtype": "Check", 
-  "label": "Make Accounting Entry For Every Stock Entry"
+  "label": "Make Accounting Entry For Every Stock Movement"
  }, 
  {
   "description": "Accounting entry frozen up to this date, nobody can do / modify entry except role specified below.", 
diff --git a/accounts/doctype/sales_invoice/sales_invoice.py b/accounts/doctype/sales_invoice/sales_invoice.py
index fe2ed63..c8eea1b 100644
--- a/accounts/doctype/sales_invoice/sales_invoice.py
+++ b/accounts/doctype/sales_invoice/sales_invoice.py
@@ -192,8 +192,6 @@
 		pos = get_pos_settings(self.doc.company)
 			
 		if pos:
-			self.doc.conversion_rate = flt(pos.conversion_rate)
-			
 			if not for_validate:
 				self.doc.customer = pos.customer
 				self.set_customer_defaults()
diff --git a/accounts/doctype/sales_invoice/test_sales_invoice.py b/accounts/doctype/sales_invoice/test_sales_invoice.py
index c2b9c8f..736cf42 100644
--- a/accounts/doctype/sales_invoice/test_sales_invoice.py
+++ b/accounts/doctype/sales_invoice/test_sales_invoice.py
@@ -6,10 +6,12 @@
 from webnotes.utils import flt, cint
 from webnotes.model.bean import DocstatusTransitionError, TimestampMismatchError
 from accounts.utils import get_stock_and_account_difference
+from stock.doctype.purchase_receipt.test_purchase_receipt import set_perpetual_inventory
 
 class TestSalesInvoice(unittest.TestCase):
 	def make(self):
 		w = webnotes.bean(copy=test_records[0])
+		w.doc.is_pos = 0
 		w.insert()
 		w.submit()
 		return w
@@ -93,7 +95,6 @@
 		si.doclist[1].ref_rate = 1
 		si.doclist[2].export_rate = 3
 		si.doclist[2].ref_rate = 3
-		si.run_method("calculate_taxes_and_totals")
 		si.insert()
 		
 		expected_values = {
@@ -259,6 +260,7 @@
 		
 	def test_payment(self):
 		w = self.make()
+		
 		from accounts.doctype.journal_voucher.test_journal_voucher \
 			import test_records as jv_test_records
 			
@@ -298,8 +300,8 @@
 			"Batched for Billing")
 			
 	def test_sales_invoice_gl_entry_without_aii(self):
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 0)
 		self.clear_stock_account_balance()
+		set_perpetual_inventory(0)
 		si = webnotes.bean(copy=test_records[1])
 		si.insert()
 		si.submit()
@@ -331,10 +333,8 @@
 		self.assertFalse(gle)
 		
 	def test_pos_gl_entry_with_aii(self):
-		webnotes.conn.sql("delete from `tabStock Ledger Entry`")
-		webnotes.conn.sql("delete from `tabGL Entry`")
-		webnotes.conn.sql("delete from `tabBin`")
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 1)
+		self.clear_stock_account_balance()
+		set_perpetual_inventory()
 		
 		self._insert_purchase_receipt()
 		self._insert_pos_settings()
@@ -359,18 +359,19 @@
 			["_Test Item", "_Test Warehouse - _TC", -1.0])
 		
 		# check gl entries
-		
 		gl_entries = webnotes.conn.sql("""select account, debit, credit
 			from `tabGL Entry` where voucher_type='Sales Invoice' and voucher_no=%s
 			order by account asc, debit asc""", si.doc.name, as_dict=1)
 		self.assertTrue(gl_entries)
+		
+		stock_in_hand = webnotes.conn.get_value("Account", {"master_name": "_Test Warehouse - _TC"})
 				
 		expected_gl_entries = sorted([
 			[si.doc.debit_to, 630.0, 0.0],
 			[pos[1]["income_account"], 0.0, 500.0],
 			[pos[2]["account_head"], 0.0, 80.0],
 			[pos[3]["account_head"], 0.0, 50.0],
-			["_Test Account Stock In Hand - _TC", 0.0, 75.0],
+			[stock_in_hand, 0.0, 75.0],
 			[pos[1]["expense_account"], 75.0, 0.0],
 			[si.doc.debit_to, 0.0, 600.0],
 			["_Test Account Bank Account - _TC", 600.0, 0.0]
@@ -389,12 +390,13 @@
 		
 		self.assertFalse(gle)
 		
-		self.assertFalse(get_stock_and_account_difference(["_Test Account Stock In Hand - _TC"]))
+		self.assertFalse(get_stock_and_account_difference([stock_in_hand]))
 		
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 0)
+		set_perpetual_inventory(0)
 		
-	def test_sales_invoice_gl_entry_with_aii_no_item_code(self):		
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 1)
+	def test_sales_invoice_gl_entry_with_aii_no_item_code(self):	
+		self.clear_stock_account_balance()
+		set_perpetual_inventory()
 				
 		si_copy = webnotes.copy_doclist(test_records[1])
 		si_copy[1]["item_code"] = None
@@ -417,12 +419,12 @@
 			self.assertEquals(expected_values[i][0], gle.account)
 			self.assertEquals(expected_values[i][1], gle.debit)
 			self.assertEquals(expected_values[i][2], gle.credit)
-				
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 0)
-	
-	def test_sales_invoice_gl_entry_with_aii_non_stock_item(self):		
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 1)
 		
+		set_perpetual_inventory(0)
+	
+	def test_sales_invoice_gl_entry_with_aii_non_stock_item(self):
+		self.clear_stock_account_balance()
+		set_perpetual_inventory()
 		si_copy = webnotes.copy_doclist(test_records[1])
 		si_copy[1]["item_code"] = "_Test Non Stock Item"
 		si = webnotes.bean(si_copy)
@@ -445,7 +447,7 @@
 			self.assertEquals(expected_values[i][1], gle.debit)
 			self.assertEquals(expected_values[i][2], gle.credit)
 				
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 0)
+		set_perpetual_inventory(0)
 		
 	def _insert_purchase_receipt(self):
 		from stock.doctype.purchase_receipt.test_purchase_receipt import test_records \
diff --git a/controllers/accounts_controller.py b/controllers/accounts_controller.py
index 6761092..7c3855f 100644
--- a/controllers/accounts_controller.py
+++ b/controllers/accounts_controller.py
@@ -5,7 +5,7 @@
 import webnotes
 from webnotes import _, msgprint
 from webnotes.utils import flt, cint, today, cstr
-from setup.utils import get_company_currency, get_price_list_currency
+from setup.utils import get_company_currency
 from accounts.utils import get_fiscal_year, validate_fiscal_year
 from utilities.transaction_base import TransactionBase, validate_conversion_rate
 import json
@@ -13,7 +13,6 @@
 class AccountsController(TransactionBase):
 	def validate(self):
 		self.set_missing_values(for_validate=True)
-		
 		self.validate_date_with_fiscal_year()
 		if self.meta.get_field("currency"):
 			self.calculate_taxes_and_totals()
@@ -54,35 +53,37 @@
 							self.doc.doctype + _(" can not be made."), raise_exception=1)
 			
 	def set_price_list_currency(self, buying_or_selling):
-		company_currency = get_company_currency(self.doc.company)
-		fieldname = buying_or_selling.lower() + "_price_list"
-		# TODO - change this, since price list now has only one currency allowed
-		if self.meta.get_field(fieldname) and self.doc.fields.get(fieldname) and \
-			not self.doc.price_list_currency:
-				self.doc.fields.update(get_price_list_currency(self.doc.fields.get(fieldname)))
-				
-				if self.doc.price_list_currency:
-					if not self.doc.plc_conversion_rate:
-						if self.doc.price_list_currency == company_currency:
-							self.doc.plc_conversion_rate = 1.0
-						else:
-							exchange = self.doc.price_list_currency + "-" + company_currency
-							self.doc.plc_conversion_rate = flt(webnotes.conn.get_value("Currency Exchange",
-								exchange, "exchange_rate"))
-						
-					if not self.doc.currency:
-						self.doc.currency = self.doc.price_list_currency
-						self.doc.conversion_rate = self.doc.plc_conversion_rate
-						
 		if self.meta.get_field("currency"):
-			if self.doc.currency and self.doc.currency != company_currency:
-				if not self.doc.conversion_rate:
-					exchange = self.doc.currency + "-" + company_currency
-					self.doc.conversion_rate = flt(webnotes.conn.get_value("Currency Exchange",
-						exchange, "exchange_rate"))
-			else:
-				self.doc.conversion_rate = 1
-						
+			company_currency = get_company_currency(self.doc.company)
+			
+			# price list part
+			fieldname = "selling_price_list" if buying_or_selling.lower() == "selling" \
+				else "buying_price_list"
+			if self.meta.get_field(fieldname) and self.doc.fields.get(fieldname):
+				if not self.doc.price_list_currency:
+					self.doc.price_list_currency = webnotes.conn.get_value("Price List",
+						self.doc.fields.get(fieldame), "currency")
+				
+				if self.doc.price_list_currency == company_currency:
+					self.doc.plc_conversion_rate = 1.0
+				elif not self.doc.plc_conversion_rate:
+					self.doc.plc_conversion_rate = self.get_exchange_rate(
+						self.doc.price_list_currency, company_currency)
+			
+			# currency
+			if not self.doc.currency:
+				self.doc.currency = self.doc.price_list_currency
+				self.doc.conversion_rate = self.doc.plc_conversion_rate
+			elif self.doc.currency == company_currency:
+				self.doc.conversion_rate = 1.0
+			elif not self.doc.conversion_rate:
+				self.doc.conversion_rate = self.get_exchange_rate(self.doc.currency,
+					company_currency)
+
+	def get_exchange_rate(self, from_currency, to_currency):
+		exchange = "%s-%s" % (from_currency, to_currency)
+		return flt(webnotes.conn.get_value("Currency Exchange", exchange, "exchange_rate"))
+
 	def set_missing_item_details(self, get_item_details):
 		"""set missing item values"""
 		for item in self.doclist.get({"parentfield": self.fname}):
diff --git a/controllers/selling_controller.py b/controllers/selling_controller.py
index 1b41422..f1117ed 100644
--- a/controllers/selling_controller.py
+++ b/controllers/selling_controller.py
@@ -23,7 +23,7 @@
 		self.set_price_list_and_item_details()
 		if self.doc.fields.get("__islocal"):
 			self.set_taxes("other_charges", "charge")
-		
+					
 	def set_missing_lead_customer_details(self):
 		if self.doc.customer:
 			if not (self.doc.contact_person and self.doc.customer_address and self.doc.customer_name):
diff --git a/controllers/stock_controller.py b/controllers/stock_controller.py
index 9adefb0..4734dea 100644
--- a/controllers/stock_controller.py
+++ b/controllers/stock_controller.py
@@ -16,7 +16,7 @@
 			return
 
 		if self.doc.docstatus==1:
-			gl_entries = self.get_gl_entries_for_stock()			
+			gl_entries = self.get_gl_entries_for_stock()
 			make_gl_entries(gl_entries)
 		else:	
 			delete_gl_entries(voucher_type=self.doc.doctype, voucher_no=self.doc.name)
@@ -31,12 +31,12 @@
 			default_cost_center)
 		
 		gl_list = []
+		warehouse_with_no_account = []
 		for detail in voucher_details:
 			sle_list = stock_ledger.get(detail.name)
 			if sle_list:
 				for sle in sle_list:
 					if warehouse_account.get(sle.warehouse):
-						
 						# from warehouse account
 						gl_list.append(self.get_gl_dict({
 							"account": warehouse_account[sle.warehouse],
@@ -54,6 +54,12 @@
 							"remarks": self.doc.remarks or "Accounting Entry for Stock",
 							"credit": sle.stock_value_difference
 						}))
+					elif sle.warehouse not in warehouse_with_no_account:
+						warehouse_with_no_account.append(sle.warehouse)
+						
+		if warehouse_with_no_account:				
+			msgprint(_("No accounting entries for following warehouses") + ": \n" + 
+				"\n".join(warehouse_with_no_account))
 		
 		return process_gl_map(gl_list)
 			
@@ -80,9 +86,11 @@
 		return stock_ledger
 		
 	def get_warehouse_account(self):
-		warehouse_account = dict(webnotes.conn.sql("""select name, account from `tabWarehouse`
-			where ifnull(account, '') != ''"""))
-				
+		for d in webnotes.conn.sql("select name from tabWarehouse"):
+			webnotes.bean("Warehouse", d[0]).save()
+
+		warehouse_account = dict(webnotes.conn.sql("""select master_name, name from tabAccount 
+			where account_type = 'Warehouse' and ifnull(master_name, '') != ''"""))
 		return warehouse_account
 		
 	def update_gl_entries_after(self):
diff --git a/selling/doctype/customer/customer.py b/selling/doctype/customer/customer.py
index fb3c006..b11f308 100644
--- a/selling/doctype/customer/customer.py
+++ b/selling/doctype/customer/customer.py
@@ -68,9 +68,9 @@
 				ac_bean.ignore_permissions = True
 				ac_bean.insert()
 				
-				msgprint("Account Head: %s created" % ac_bean.doc.name)
+				msgprint(_("Account Head") + ": " + ac_bean.doc.name + _(" created"))
 		else :
-			msgprint("Please Select Company under which you want to create account head")
+			msgprint(_("Please Select Company under which you want to create account head"))
 
 	def update_credit_days_limit(self):
 		webnotes.conn.sql("""update tabAccount set credit_days = %s, credit_limit = %s 
diff --git a/setup/doctype/company/company.py b/setup/doctype/company/company.py
index 38093e7..1fd97be 100644
--- a/setup/doctype/company/company.py
+++ b/setup/doctype/company/company.py
@@ -59,14 +59,12 @@
 
 	def create_default_warehouses(self):
 		for whname in ("Stores", "Work In Progress", "Finished Goods"):
-			wh = {
+			webnotes.bean({
 				"doctype":"Warehouse",
 				"warehouse_name": whname,
 				"company": self.doc.name,
-			}
-			wh.update({"account": "Stock In Hand - " + self.doc.abbr})
-				
-			webnotes.bean(wh).insert()
+				"create_account_under": "Stock Assets - " + self.doc.abbr
+			}).insert()
 			
 	def create_default_web_page(self):
 		if not webnotes.conn.get_value("Website Settings", None, "home_page"):
@@ -116,7 +114,6 @@
 					['Securities and Deposits','Current Assets','Group','No','','Debit',self.doc.name,''],
 						['Earnest Money','Securities and Deposits','Ledger','No','','Debit',self.doc.name,''],
 					['Stock Assets','Current Assets','Group','No','','Debit',self.doc.name,''],
-						['Stock In Hand','Stock Assets','Ledger','No','','Debit',self.doc.name,''],
 					['Tax Assets','Current Assets','Group','No','','Debit',self.doc.name,''],
 				['Fixed Assets','Application of Funds (Assets)','Group','No','','Debit',self.doc.name,''],
 					['Capital Equipments','Fixed Assets','Ledger','No','Fixed Asset Account','Debit',self.doc.name,''],
@@ -289,9 +286,6 @@
 		"""
 		rec = webnotes.conn.sql("SELECT name from `tabGL Entry` where company = %s", self.doc.name)
 		if not rec:
-			# delete gl entry
-			webnotes.conn.sql("delete from `tabGL Entry` where company = %s", self.doc.name)
-
 			#delete tabAccount
 			webnotes.conn.sql("delete from `tabAccount` where company = %s order by lft desc, rgt desc", self.doc.name)
 			
@@ -300,6 +294,9 @@
 			#delete cost center
 			webnotes.conn.sql("delete from `tabCost Center` WHERE company = %s order by lft desc, rgt desc", self.doc.name)
 			
+		if not webnotes.conn.get_value("Stock Ledger Entry", {"company": self.doc.name}):
+			webnotes.conn.sql("""delete from `tabWarehouse` where company=%s""", self.doc.name)
+			
 		webnotes.defaults.clear_default("company", value=self.doc.name)
 			
 		webnotes.conn.sql("""update `tabSingles` set value=""
diff --git a/stock/doctype/delivery_note/test_delivery_note.py b/stock/doctype/delivery_note/test_delivery_note.py
index 2b4bfa5..7c52550 100644
--- a/stock/doctype/delivery_note/test_delivery_note.py
+++ b/stock/doctype/delivery_note/test_delivery_note.py
@@ -7,7 +7,7 @@
 import webnotes
 import webnotes.defaults
 from webnotes.utils import cint
-from stock.doctype.purchase_receipt.test_purchase_receipt import get_gl_entries, test_records as pr_test_records
+from stock.doctype.purchase_receipt.test_purchase_receipt import get_gl_entries, set_perpetual_inventory, test_records as pr_test_records
 
 class TestDeliveryNote(unittest.TestCase):
 	def _insert_purchase_receipt(self, item_code=None):
@@ -41,7 +41,7 @@
 	
 	def test_delivery_note_no_gl_entry(self):
 		self.clear_stock_account_balance()
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 0)
+		set_perpetual_inventory(0)
 		self.assertEqual(cint(webnotes.defaults.get_global_default("auto_accounting_for_stock")), 0)
 		
 		self._insert_purchase_receipt()
@@ -65,8 +65,7 @@
 		
 	def test_delivery_note_gl_entry(self):
 		self.clear_stock_account_balance()
-		
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 1)
+		set_perpetual_inventory()
 		self.assertEqual(cint(webnotes.defaults.get_global_default("auto_accounting_for_stock")), 1)
 		webnotes.conn.set_value("Item", "_Test Item", "valuation_method", "FIFO")
 		
@@ -76,8 +75,8 @@
 		dn.doclist[1].expense_account = "Cost of Goods Sold - _TC"
 		dn.doclist[1].cost_center = "Main - _TC"
 
-		stock_in_hand_account = webnotes.conn.get_value("Warehouse", dn.doclist[1].warehouse, 
-			"account")
+		stock_in_hand_account = webnotes.conn.get_value("Account", 
+			{"master_name": dn.doclist[1].warehouse})
 		
 		from accounts.utils import get_balance_on
 		prev_bal = get_balance_on(stock_in_hand_account, dn.doc.posting_date)
@@ -118,12 +117,11 @@
 					
 		dn.cancel()
 		self.assertFalse(get_gl_entries("Delivery Note", dn.doc.name))
-		
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 0)
+		set_perpetual_inventory(0)
 			
 	def test_delivery_note_gl_entry_packing_item(self):
 		self.clear_stock_account_balance()
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 1)
+		set_perpetual_inventory()
 		
 		self._insert_purchase_receipt()
 		self._insert_purchase_receipt("_Test Item Home Desktop 100")
@@ -132,8 +130,8 @@
 		dn.doclist[1].item_code = "_Test Sales BOM Item"
 		dn.doclist[1].qty = 1
 	
-		stock_in_hand_account = webnotes.conn.get_value("Warehouse", dn.doclist[1].warehouse, 
-			"account")
+		stock_in_hand_account = webnotes.conn.get_value("Account", 
+			{"master_name": dn.doclist[1].warehouse})
 		
 		from accounts.utils import get_balance_on
 		prev_bal = get_balance_on(stock_in_hand_account, dn.doc.posting_date)
@@ -158,7 +156,7 @@
 		dn.cancel()
 		self.assertFalse(get_gl_entries("Delivery Note", dn.doc.name))
 		
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 0)
+		set_perpetual_inventory(0)
 		
 	def test_serialized(self):
 		from stock.doctype.stock_entry.test_stock_entry import make_serialized_item
diff --git a/stock/doctype/purchase_receipt/test_purchase_receipt.py b/stock/doctype/purchase_receipt/test_purchase_receipt.py
index 6161511..b4c7cc6 100644
--- a/stock/doctype/purchase_receipt/test_purchase_receipt.py
+++ b/stock/doctype/purchase_receipt/test_purchase_receipt.py
@@ -12,8 +12,8 @@
 
 class TestPurchaseReceipt(unittest.TestCase):
 	def test_make_purchase_invoice(self):
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 0)
 		self._clear_stock_account_balance()
+		set_perpetual_inventory(0)
 		from stock.doctype.purchase_receipt.purchase_receipt import make_purchase_invoice
 
 		pr = webnotes.bean(copy=test_records[0]).insert()
@@ -33,8 +33,8 @@
 		self.assertRaises(webnotes.ValidationError, webnotes.bean(pi).submit)
 		
 	def test_purchase_receipt_no_gl_entry(self):
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 0)
 		self._clear_stock_account_balance()
+		set_perpetual_inventory(0)
 		pr = webnotes.bean(copy=test_records[0])
 		pr.insert()
 		pr.submit()
@@ -53,11 +53,11 @@
 		self.assertFalse(get_gl_entries("Purchase Receipt", pr.doc.name))
 		
 	def test_purchase_receipt_gl_entry(self):
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 1)
-		self.assertEqual(cint(webnotes.defaults.get_global_default("auto_accounting_for_stock")), 1)
-		
 		self._clear_stock_account_balance()
 		
+		set_perpetual_inventory()
+		self.assertEqual(cint(webnotes.defaults.get_global_default("auto_accounting_for_stock")), 1)
+		
 		pr = webnotes.bean(copy=test_records[0])
 		pr.insert()
 		pr.submit()
@@ -66,10 +66,10 @@
 		
 		self.assertTrue(gl_entries)
 		
-		stock_in_hand_account = webnotes.conn.get_value("Warehouse", pr.doclist[1].warehouse, 
-			"account")		
-		fixed_asset_account = webnotes.conn.get_value("Warehouse", pr.doclist[2].warehouse, 
-			"account")
+		stock_in_hand_account = webnotes.conn.get_value("Account", 
+			{"master_name": pr.doclist[1].warehouse})		
+		fixed_asset_account = webnotes.conn.get_value("Account", 
+			{"master_name": pr.doclist[2].warehouse})
 		
 		expected_values = {
 			stock_in_hand_account: [375.0, 0.0],
@@ -84,7 +84,7 @@
 		pr.cancel()
 		self.assertFalse(get_gl_entries("Purchase Receipt", pr.doc.name))
 		
-		webnotes.defaults.set_global_default("auto_accounting_for_stock", 0)
+		set_perpetual_inventory(0)
 		
 	def _clear_stock_account_balance(self):
 		webnotes.conn.sql("delete from `tabStock Ledger Entry`")
@@ -123,6 +123,10 @@
 		from `tabGL Entry` where voucher_type=%s and voucher_no=%s
 		order by account desc""", (voucher_type, voucher_no), as_dict=1)
 		
+def set_perpetual_inventory(enable=1):
+	accounts_settings = webnotes.bean("Accounts Settings")
+	accounts_settings.doc.auto_accounting_for_stock = enable
+	accounts_settings.save()
 	
 		
 test_dependencies = ["BOM"]
diff --git a/stock/doctype/warehouse/test_warehouse.py b/stock/doctype/warehouse/test_warehouse.py
index 40a8ff2..76b1818 100644
--- a/stock/doctype/warehouse/test_warehouse.py
+++ b/stock/doctype/warehouse/test_warehouse.py
@@ -6,18 +6,18 @@
 		"doctype": "Warehouse",
 		"warehouse_name": "_Test Warehouse",
 		"company": "_Test Company", 
-		"account": "_Test Account Stock In Hand - _TC"
+		"create_account_under": "Stock Assets - _TC"
 	}],
 	[{
 		"doctype": "Warehouse",
 		"warehouse_name": "_Test Warehouse 1",
 		"company": "_Test Company",
-		"account": "_Test Account Fixed Assets - _TC"
+		"create_account_under": "Fixed Assets - _TC"
 	}],
 	[{
 		"doctype": "Warehouse",
 		"warehouse_name": "_Test Warehouse 2",
-		"account": "_Test Account Stock In Hand - _TC1",
+		"create_account_under": "Stock Assets - _TC",
 		"company": "_Test Company 1"
 	}, {
 		"doctype": "Warehouse User",
diff --git a/stock/doctype/warehouse/warehouse.js b/stock/doctype/warehouse/warehouse.js
index 34745f5..2a58a38 100644
--- a/stock/doctype/warehouse/warehouse.js
+++ b/stock/doctype/warehouse/warehouse.js
@@ -17,12 +17,12 @@
 	}
 }
 
-cur_frm.set_query("account", function() {
+cur_frm.set_query("create_account_under", function() {
 	return {
 		filters: {
 			"company": cur_frm.doc.company,
 			"debit_or_credit": "Debit",
-			'group_or_ledger': "Ledger"
+			'group_or_ledger': "Group"
 		}
 	}
 })
diff --git a/stock/doctype/warehouse/warehouse.py b/stock/doctype/warehouse/warehouse.py
index 6a532ff..eb84acf 100644
--- a/stock/doctype/warehouse/warehouse.py
+++ b/stock/doctype/warehouse/warehouse.py
@@ -6,7 +6,7 @@
 
 from webnotes.utils import cint, flt, validate_email_add
 from webnotes.model.code import get_obj
-from webnotes import msgprint
+from webnotes import msgprint, _
 
 sql = webnotes.conn.sql
 
@@ -23,21 +23,47 @@
 	def validate(self):
 		if self.doc.email_id and not validate_email_add(self.doc.email_id):
 				msgprint("Please enter valid Email Id", raise_exception=1)
-				
-		self.account_mandatory()
 		
-	def account_mandatory(self):
-		if cint(webnotes.defaults.get_global_default("auto_accounting_for_stock")):
-			sle_exists = webnotes.conn.get_value("Stock Ledger Entry", {"warehouse": self.doc.name})
-			if not self.doc.account and (self.doc.__islocal or not sle_exists):
-				webnotes.throw(_("Asset/Expense Account mandatory"))
+		self.validate_parent_account()
 				
-			if not self.doc.__islocal and sle_exists:
-				old_account = webnotes.conn.get_value("Warehouse", self.doc.name, "account")
-				if old_account != self.doc.account:
-					webnotes.throw(_("Account can not be changed/assigned/removed as \
-						stock transactions exist for this warehouse"))
+	def on_update(self):
+		self.create_account_head()
 						
+	def create_account_head(self):
+		if cint(webnotes.defaults.get_global_default("auto_accounting_for_stock")):
+			if not webnotes.conn.get_value("Account", {"account_type": "Warehouse", 
+					"master_name": self.doc.name}):
+				if self.doc.__islocal or not webnotes.conn.get_value("Stock Ledger Entry", 
+						{"warehouse": self.doc.name}):
+					ac_bean = webnotes.bean({
+						"doctype": "Account",
+						'account_name': self.doc.warehouse_name, 
+						'parent_account': self.doc.create_account_under, 
+						'group_or_ledger':'Ledger', 
+						'company':self.doc.company, 
+						"account_type": "Warehouse",
+						"master_name": self.doc.name,
+						"freeze_account": "No"
+					})
+					ac_bean.ignore_permissions = True
+					ac_bean.insert()
+					
+					msgprint(_("Account Head") + ": " + ac_bean.doc.name + _(" created"))
+	
+	def validate_parent_account(self):
+		if cint(webnotes.defaults.get_global_default("auto_accounting_for_stock")) and \
+			not self.doc.create_account_under:
+				parent_account = webnotes.conn.get_value("Account", 
+					{"account_name": "Stock Assets", "company": self.doc.company})
+				if parent_account:
+					self.doc.create_account_under = parent_account
+				else:
+					webnotes.throw(_("Please enter account group under which account \
+						for warehouse ") + self.doc.name +_(" will be created"))
+			
+	def on_rename(self, new, old):
+		webnotes.conn.set_value("Account", {"account_type": "Warehouse", "master_name": old}, 
+			"master_name", new)
 
 	def merge_warehouses(self):
 		webnotes.conn.auto_commit_on_many_writes = 1
@@ -52,6 +78,15 @@
 		link_fields = rename_doc.get_link_fields('Warehouse')
 		rename_doc.update_link_field_values(link_fields, self.doc.name, self.doc.merge_with)
 		
+		account_link_fields = rename_doc.get_link_fields('Account')
+		old_warehouse_account = webnotes.conn.get_value("Account", {"master_name": self.doc.name})
+		new_warehouse_account = webnotes.conn.get_value("Account", 
+			{"master_name": self.doc.merge_with})
+		rename_doc.update_link_field_values(account_link_fields, old_warehouse_account, 
+			new_warehouse_account)
+			
+		webnotes.conn.delete_doc("Account", old_warehouse_account)
+		
 		for item_code in items:
 			self.repost(item_code[0], self.doc.merge_with)
 			
@@ -160,6 +195,11 @@
 			else:
 				sql("delete from `tabBin` where name = %s", d['name'])
 				
+		warehouse_account = webnotes.conn.get_value("Account", 
+			{"account_type": "Warehosue", "master_name": self.doc.name})
+		if warehouse_account:
+			webnotes.delete_doc("Account", warehouse_account)
+				
 		# delete cancelled sle
 		if sql("""select name from `tabStock Ledger Entry` where warehouse = %s""", self.doc.name):
 			msgprint("""Warehosue can not be deleted as stock ledger entry 
diff --git a/stock/doctype/warehouse/warehouse.txt b/stock/doctype/warehouse/warehouse.txt
index 1b1fc33..76ddac7 100644
--- a/stock/doctype/warehouse/warehouse.txt
+++ b/stock/doctype/warehouse/warehouse.txt
@@ -2,7 +2,7 @@
  {
   "creation": "2013-03-07 18:50:32", 
   "docstatus": 0, 
-  "modified": "2013-08-01 15:27:49", 
+  "modified": "2013-09-16 10:45:49", 
   "modified_by": "Administrator", 
   "owner": "Administrator"
  }, 
@@ -28,9 +28,9 @@
   "parent": "Warehouse", 
   "parentfield": "permissions", 
   "parenttype": "DocType", 
+  "permlevel": 0, 
   "read": 1, 
-  "report": 1, 
-  "submit": 0
+  "report": 1
  }, 
  {
   "doctype": "DocType", 
@@ -71,11 +71,12 @@
   "search_index": 1
  }, 
  {
-  "description": "This account will be used for perpetual accounting for inventory e.g. Stock-in-Hand, Fixed Asset Account etc", 
+  "depends_on": "eval:sys_defaults.auto_accounting_for_stock", 
+  "description": "Account for the warehouse (Perpetual Inventory) will be created under this Account.", 
   "doctype": "DocField", 
-  "fieldname": "account", 
+  "fieldname": "create_account_under", 
   "fieldtype": "Link", 
-  "label": "Account", 
+  "label": "Create Account Under", 
   "options": "Account", 
   "permlevel": 0
  }, 
@@ -231,16 +232,8 @@
   "cancel": 1, 
   "create": 1, 
   "doctype": "DocPerm", 
-  "permlevel": 0, 
   "role": "Material Master Manager", 
-  "write": 1
- }, 
- {
-  "cancel": 1, 
-  "create": 1, 
-  "doctype": "DocPerm", 
-  "permlevel": 0, 
-  "role": "System Manager", 
+  "submit": 0, 
   "write": 1
  }, 
  {
@@ -248,26 +241,20 @@
   "cancel": 0, 
   "create": 0, 
   "doctype": "DocPerm", 
-  "permlevel": 0, 
-  "role": "Material Manager", 
-  "write": 0
- }, 
- {
-  "amend": 0, 
-  "cancel": 0, 
-  "create": 0, 
-  "doctype": "DocPerm", 
-  "permlevel": 0, 
   "role": "Material User", 
+  "submit": 0, 
   "write": 0
  }, 
  {
-  "amend": 0, 
-  "cancel": 0, 
-  "create": 0, 
   "doctype": "DocPerm", 
-  "permlevel": 2, 
-  "role": "System Manager", 
-  "write": 1
+  "role": "Sales User"
+ }, 
+ {
+  "doctype": "DocPerm", 
+  "role": "Purchase User"
+ }, 
+ {
+  "doctype": "DocPerm", 
+  "role": "Accounts User"
  }
 ]
\ No newline at end of file