diff --git a/erpnext/selling/doctype/product_bundle/product_bundle.json b/erpnext/selling/doctype/product_bundle/product_bundle.json
index 3f4e296..a1be948 100644
--- a/erpnext/selling/doctype/product_bundle/product_bundle.json
+++ b/erpnext/selling/doctype/product_bundle/product_bundle.json
@@ -1,21 +1,41 @@
 {
+ "allow_copy": 0, 
  "allow_import": 1, 
+ "allow_rename": 0, 
  "creation": "2013-06-20 11:53:21", 
+ "custom": 0, 
  "description": "Aggregate group of **Items** into another **Item**. This is useful if you are bundling a certain **Items** into a package and you maintain stock of the packed **Items** and not the aggregate **Item**. \n\nThe package **Item** will have \"Is Stock Item\" as \"No\" and \"Is Sales Item\" as \"Yes\".\n\nFor Example: If you are selling Laptops and Backpacks separately and have a special price if the customer buys both, then the Laptop + Backpack will be a new Product Bundle Item.\n\nNote: BOM = Bill of Materials", 
  "docstatus": 0, 
  "doctype": "DocType", 
- "document_type": "Master", 
+ "document_type": "", 
  "fields": [
   {
+   "allow_on_submit": 0, 
    "fieldname": "basic_section", 
    "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
    "label": "", 
-   "permlevel": 0
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
   }, 
   {
-   "description": "The Item that represents the Package. This Item must have \"Is Stock Item\" as \"No\" and \"Is Sales Item\" as \"Yes\"", 
+   "allow_on_submit": 0, 
+   "description": "", 
    "fieldname": "new_item_code", 
    "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
    "in_list_view": 1, 
    "label": "Parent Item", 
    "no_copy": 1, 
@@ -23,30 +43,67 @@
    "oldfieldtype": "Data", 
    "options": "Item", 
    "permlevel": 0, 
-   "reqd": 1
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
   }, 
   {
+   "allow_on_submit": 0, 
    "description": "List items that form the package.", 
    "fieldname": "item_section", 
    "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
    "label": "", 
-   "permlevel": 0
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
   }, 
   {
+   "allow_on_submit": 0, 
    "fieldname": "items", 
    "fieldtype": "Table", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
    "label": "Items", 
+   "no_copy": 0, 
    "oldfieldname": "sales_bom_items", 
    "oldfieldtype": "Table", 
    "options": "Product Bundle Item", 
    "permlevel": 0, 
-   "reqd": 1
+   "print_hide": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
   }
  ], 
+ "hide_heading": 0, 
+ "hide_toolbar": 0, 
  "icon": "icon-sitemap", 
  "idx": 1, 
+ "in_create": 0, 
+ "in_dialog": 0, 
  "is_submittable": 0, 
- "modified": "2015-07-13 05:28:28.140327", 
+ "issingle": 0, 
+ "istable": 0, 
+ "modified": "2015-08-03 11:23:26.263254", 
  "modified_by": "Administrator", 
  "module": "Selling", 
  "name": "Product Bundle", 
@@ -54,14 +111,20 @@
  "permissions": [
   {
    "amend": 0, 
+   "apply_user_permissions": 0, 
+   "cancel": 0, 
    "create": 1, 
    "delete": 1, 
    "email": 1, 
+   "export": 0, 
+   "if_owner": 0, 
+   "import": 0, 
    "permlevel": 0, 
    "print": 1, 
    "read": 1, 
    "report": 1, 
    "role": "Stock Manager", 
+   "set_user_permissions": 0, 
    "share": 1, 
    "submit": 0, 
    "write": 1
@@ -69,31 +132,44 @@
   {
    "amend": 0, 
    "apply_user_permissions": 1, 
+   "cancel": 0, 
    "create": 0, 
    "delete": 0, 
    "email": 1, 
+   "export": 0, 
+   "if_owner": 0, 
+   "import": 0, 
    "permlevel": 0, 
    "print": 1, 
    "read": 1, 
    "report": 1, 
    "role": "Stock User", 
+   "set_user_permissions": 0, 
+   "share": 0, 
    "submit": 0, 
    "write": 0
   }, 
   {
    "amend": 0, 
    "apply_user_permissions": 1, 
+   "cancel": 0, 
    "create": 1, 
    "delete": 1, 
    "email": 1, 
+   "export": 0, 
+   "if_owner": 0, 
+   "import": 0, 
    "permlevel": 0, 
    "print": 1, 
    "read": 1, 
    "report": 1, 
    "role": "Sales User", 
+   "set_user_permissions": 0, 
    "share": 1, 
    "submit": 0, 
    "write": 1
   }
- ]
+ ], 
+ "read_only": 0, 
+ "read_only_onload": 0
 }
\ No newline at end of file
diff --git a/erpnext/selling/doctype/product_bundle/product_bundle.py b/erpnext/selling/doctype/product_bundle/product_bundle.py
index 8c95a45..fdf6b76 100644
--- a/erpnext/selling/doctype/product_bundle/product_bundle.py
+++ b/erpnext/selling/doctype/product_bundle/product_bundle.py
@@ -13,17 +13,9 @@
 		self.name = self.new_item_code
 
 	def validate(self):
-		self.validate_main_item()
-
 		from erpnext.utilities.transaction_base import validate_uom_is_integer
 		validate_uom_is_integer(self, "uom", "qty")
 
-	def validate_main_item(self):
-		"""main item must have Is Stock Item as No and Is Sales Item as Yes"""
-		if not frappe.db.sql("""select name from tabItem where name=%s and
-			is_stock_item = 0 and is_sales_item = 1""", self.new_item_code):
-			frappe.throw(_("Parent Item {0} must be not Stock Item and must be a Sales Item").format(self.new_item_code))
-
 	def get_item_details(self, name):
 		det = frappe.db.sql("""select description, stock_uom from `tabItem`
 			where name = %s""", name)
@@ -36,8 +28,7 @@
 	from erpnext.controllers.queries import get_match_cond
 
 	return frappe.db.sql("""select name, item_name, description from tabItem
-		where is_stock_item=0 and is_sales_item=1
-		and name not in (select name from `tabProduct Bundle`) and %s like %s
-		%s limit %s, %s""" % (searchfield, "%s",
+		where name not in (select name from `tabProduct Bundle`)
+		and %s like %s %s limit %s, %s""" % (searchfield, "%s",
 		get_match_cond(doctype),"%s", "%s"),
 		("%%%s%%" % txt, start, page_len))
diff --git a/erpnext/selling/doctype/product_bundle/test_product_bundle.py b/erpnext/selling/doctype/product_bundle/test_product_bundle.py
index 8c5fe12..39b17f3 100644
--- a/erpnext/selling/doctype/product_bundle/test_product_bundle.py
+++ b/erpnext/selling/doctype/product_bundle/test_product_bundle.py
@@ -5,4 +5,21 @@
 
 
 import frappe
-test_records = frappe.get_test_records('Product Bundle')
\ No newline at end of file
+test_records = frappe.get_test_records('Product Bundle')
+
+def make_product_bundle(parent, items):
+	if frappe.db.exists("Product Bundle", parent):
+		return frappe.get_doc("Product Bundle", parent)
+
+	product_bundle = frappe.get_doc({
+		"doctype": "Product Bundle",
+		"parent_item": parent,
+		"new_item_code": parent
+	})
+
+	for item in items:
+		product_bundle.append("items", {"item_code": item, "qty": 1})
+
+	product_bundle.insert()
+
+	return product_bundle
diff --git a/erpnext/selling/doctype/sales_order/sales_order.py b/erpnext/selling/doctype/sales_order/sales_order.py
index b92e934..109034d 100644
--- a/erpnext/selling/doctype/sales_order/sales_order.py
+++ b/erpnext/selling/doctype/sales_order/sales_order.py
@@ -39,9 +39,8 @@
 		for d in self.get('items'):
 			check_list.append(cstr(d.item_code))
 
-			if (frappe.db.get_value("Item", d.item_code, "is_stock_item")==1 or
-				self.has_product_bundle(d.item_code)) and not d.warehouse:
-					frappe.throw(_("Reserved warehouse required for stock item {0}").format(d.item_code))
+			if frappe.db.get_value("Item", d.item_code, "is_stock_item") and not d.warehouse:
+					frappe.throw(_("Delivery warehouse required for stock item {0}").format(d.item_code))
 
 			# used for production plan
 			d.transaction_date = self.transaction_date
diff --git a/erpnext/selling/doctype/sales_order/test_sales_order.py b/erpnext/selling/doctype/sales_order/test_sales_order.py
index 59e58b0..d4d5f92 100644
--- a/erpnext/selling/doctype/sales_order/test_sales_order.py
+++ b/erpnext/selling/doctype/sales_order/test_sales_order.py
@@ -80,7 +80,7 @@
 
 	def test_reserved_qty_for_partial_delivery(self):
 		existing_reserved_qty = get_reserved_qty()
-		
+
 		so = make_sales_order()
 		self.assertEqual(get_reserved_qty(), existing_reserved_qty + 10)
 
@@ -91,7 +91,7 @@
 		so.load_from_db()
 		so.stop_sales_order()
 		self.assertEqual(get_reserved_qty(), existing_reserved_qty)
-		
+
 		# unstop so
 		so.load_from_db()
 		so.unstop_sales_order()
@@ -99,7 +99,7 @@
 
 		dn.cancel()
 		self.assertEqual(get_reserved_qty(), existing_reserved_qty + 10)
-		
+
 		# cancel
 		so.load_from_db()
 		so.cancel()
@@ -108,9 +108,9 @@
 	def test_reserved_qty_for_over_delivery(self):
 		# set over-delivery tolerance
 		frappe.db.set_value('Item', "_Test Item", 'tolerance', 50)
-		
+
 		existing_reserved_qty = get_reserved_qty()
-		
+
 		so = make_sales_order()
 		self.assertEqual(get_reserved_qty(), existing_reserved_qty + 10)
 
@@ -124,39 +124,39 @@
 	def test_reserved_qty_for_partial_delivery_with_packing_list(self):
 		existing_reserved_qty_item1 = get_reserved_qty("_Test Item")
 		existing_reserved_qty_item2 = get_reserved_qty("_Test Item Home Desktop 100")
-		
+
 		so = make_sales_order(item_code="_Test Product Bundle Item")
-		
+
 		self.assertEqual(get_reserved_qty("_Test Item"), existing_reserved_qty_item1 + 50)
-		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"), 
+		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"),
 			existing_reserved_qty_item2 + 20)
-		
+
 		dn = create_dn_against_so(so.name)
-		
+
 		self.assertEqual(get_reserved_qty("_Test Item"), existing_reserved_qty_item1 + 25)
-		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"), 
+		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"),
 			existing_reserved_qty_item2 + 10)
 
 		# stop so
 		so.load_from_db()
 		so.stop_sales_order()
-		
+
 		self.assertEqual(get_reserved_qty("_Test Item"), existing_reserved_qty_item1)
 		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"), existing_reserved_qty_item2)
 
 		# unstop so
 		so.load_from_db()
 		so.unstop_sales_order()
-		
+
 		self.assertEqual(get_reserved_qty("_Test Item"), existing_reserved_qty_item1 + 25)
-		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"), 
+		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"),
 			existing_reserved_qty_item2 + 10)
 
 		dn.cancel()
 		self.assertEqual(get_reserved_qty("_Test Item"), existing_reserved_qty_item1 + 50)
-		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"), 
+		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"),
 			existing_reserved_qty_item2 + 20)
-		
+
 		so.load_from_db()
 		so.cancel()
 		self.assertEqual(get_reserved_qty("_Test Item"), existing_reserved_qty_item1)
@@ -165,25 +165,25 @@
 	def test_reserved_qty_for_over_delivery_with_packing_list(self):
 		# set over-delivery tolerance
 		frappe.db.set_value('Item', "_Test Product Bundle Item", 'tolerance', 50)
-		
+
 		existing_reserved_qty_item1 = get_reserved_qty("_Test Item")
 		existing_reserved_qty_item2 = get_reserved_qty("_Test Item Home Desktop 100")
-		
+
 		so = make_sales_order(item_code="_Test Product Bundle Item")
-		
+
 		self.assertEqual(get_reserved_qty("_Test Item"), existing_reserved_qty_item1 + 50)
-		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"), 
+		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"),
 			existing_reserved_qty_item2 + 20)
-		
+
 		dn = create_dn_against_so(so.name, 15)
-		
+
 		self.assertEqual(get_reserved_qty("_Test Item"), existing_reserved_qty_item1)
-		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"), 
+		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"),
 			existing_reserved_qty_item2)
-		
+
 		dn.cancel()
 		self.assertEqual(get_reserved_qty("_Test Item"), existing_reserved_qty_item1 + 50)
-		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"), 
+		self.assertEqual(get_reserved_qty("_Test Item Home Desktop 100"),
 			existing_reserved_qty_item2 + 20)
 
 	def test_warehouse_user(self):
@@ -201,7 +201,7 @@
 
 		frappe.set_user("test@example.com")
 
-		so = make_sales_order(company="_Test Company 1", 
+		so = make_sales_order(company="_Test Company 1",
 			warehouse="_Test Warehouse 2 - _TC1", do_not_save=True)
 		so.conversion_rate = 0.02
 		so.plc_conversion_rate = 0.02
@@ -216,14 +216,30 @@
 
 	def test_block_delivery_note_against_cancelled_sales_order(self):
 		so = make_sales_order()
-		
+
 		dn = make_delivery_note(so.name)
 		dn.insert()
-		
+
 		so.cancel()
-		
+
 		self.assertRaises(frappe.CancelledLinkError, dn.submit)
-		
+
+	def test_service_type_product_bundle(self):
+		from erpnext.stock.doctype.item.test_item import make_item
+		from erpnext.selling.doctype.product_bundle.test_product_bundle import make_product_bundle
+
+		make_item("_Test Service Product Bundle", {"is_stock_item": 0, "is_sales_item": 1})
+		make_item("_Test Service Product Bundle Item 1", {"is_stock_item": 0, "is_sales_item": 1})
+		make_item("_Test Service Product Bundle Item 2", {"is_stock_item": 0, "is_sales_item": 1})
+
+		make_product_bundle("_Test Service Product Bundle",
+			["_Test Service Product Bundle Item 1", "_Test Service Product Bundle Item 2"])
+
+		so = make_sales_order(item_code = "_Test Service Product Bundle")
+
+		self.assertTrue("_Test Service Product Bundle Item 1" in [d.item_code for d in so.packed_items])
+		self.assertTrue("_Test Service Product Bundle Item 2" in [d.item_code for d in so.packed_items])
+
 def make_sales_order(**args):
 	so = frappe.new_doc("Sales Order")
 	args = frappe._dict(args)
@@ -246,12 +262,12 @@
 		so.insert()
 		if not args.do_not_submit:
 			so.submit()
-			
+
 	return so
-	
+
 def create_dn_against_so(so, delivered_qty=0):
 	frappe.db.set_value("Stock Settings", None, "allow_negative_stock", 1)
-	
+
 	dn = make_delivery_note(so)
 	dn.get("items")[0].qty = delivered_qty or 5
 	dn.insert()
@@ -261,5 +277,5 @@
 def get_reserved_qty(item_code="_Test Item", warehouse="_Test Warehouse - _TC"):
 	return flt(frappe.db.get_value("Bin", {"item_code": item_code, "warehouse": warehouse},
 		"reserved_qty"))
-	
-test_dependencies = ["Currency Exchange"]
\ No newline at end of file
+
+test_dependencies = ["Currency Exchange"]
diff --git a/erpnext/stock/doctype/item/test_item.py b/erpnext/stock/doctype/item/test_item.py
index f299c4a..0fb01ac 100644
--- a/erpnext/stock/doctype/item/test_item.py
+++ b/erpnext/stock/doctype/item/test_item.py
@@ -12,6 +12,23 @@
 test_ignore = ["BOM"]
 test_dependencies = ["Warehouse"]
 
+def make_item(item_code, properties=None):
+	if frappe.db.exists("Item", item_code):
+		return frappe.get_doc("Item", item_code)
+
+	item = frappe.get_doc({
+		"doctype": "Item",
+		"item_code": item_code,
+		"item_name": item_code,
+		"description": item_code,
+		"item_group": "Products"
+	})
+
+	if properties:
+		item.update(properties)
+		item.insert()
+	return item
+
 class TestItem(unittest.TestCase):
 	def get_item(self, idx):
 		item_code = test_records[idx].get("item_code")