diff --git a/accounts/doctype/accounts_settings/accounts_settings.py b/accounts/doctype/accounts_settings/accounts_settings.py
index b548936..ed7b402 100644
--- a/accounts/doctype/accounts_settings/accounts_settings.py
+++ b/accounts/doctype/accounts_settings/accounts_settings.py
@@ -2,23 +2,24 @@
 
 from __future__ import unicode_literals
 import webnotes
-from webnotes.utils import cint
+from webnotes.utils import cint, cstr
+from webnotes import msgprint, _
 
 class DocType:
 	def __init__(self, d, dl):
 		self.doc, self.doclist = d, dl
 
 	def validate(self):
-		self.make_adjustment_jv_for_auto_inventory()
+		self.validate_perpetual_accounting()
 		
-	def make_adjustment_jv_for_auto_inventory(self):
-		previous_auto_inventory_accounting = cint(webnotes.conn.get_value("Accounts Settings", 
-			None, "auto_inventory_accounting"))
-		if cint(self.doc.auto_inventory_accounting) != previous_auto_inventory_accounting:
-			from accounts.utils import create_stock_in_hand_jv
-			create_stock_in_hand_jv(reverse = \
-				cint(self.doc.auto_inventory_accounting) < previous_auto_inventory_accounting)
-		
+	def validate_perpetual_accounting(self):
+		if cint(self.doc.perpetual_accounting) == 1:
+			previous_val = cint(webnotes.conn.get_value("Accounts Settings", 
+				None, "perpetual_accounting"))
+			if cint(self.doc.perpetual_accounting) != previous_val:
+				from accounts.utils import validate_stock_and_account_balance
+				validate_stock_and_account_balance()
+	
 	def on_update(self):
-		for key in ["auto_inventory_accounting"]:
+		for key in ["perpetual_accounting"]:
 			webnotes.conn.set_default(key, self.doc.fields.get(key, ''))
diff --git a/accounts/doctype/accounts_settings/accounts_settings.txt b/accounts/doctype/accounts_settings/accounts_settings.txt
index b8be161..b7ab69e 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": "2013-07-05 14:23:40", 
+  "modified": "2013-08-01 17:35:16", 
   "modified_by": "Administrator", 
   "owner": "Administrator"
  }, 
@@ -39,11 +39,12 @@
   "name": "Accounts Settings"
  }, 
  {
+  "default": "1", 
   "description": "If enabled, the system will post accounting entries for inventory automatically.", 
   "doctype": "DocField", 
-  "fieldname": "auto_inventory_accounting", 
+  "fieldname": "perpetual_accounting", 
   "fieldtype": "Check", 
-  "label": "Enable Auto Inventory Accounting"
+  "label": "Enable Perpetual Accounting for Inventory"
  }, 
  {
   "description": "Accounting entry frozen up to this date, nobody can do / modify entry except role specified below.",