diff --git a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js
index c655626..c51231e 100644
--- a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js
+++ b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js
@@ -232,7 +232,8 @@
 
 cur_frm.fields_dict['items'].grid.get_field("item_code").get_query = function(doc, cdt, cdn) {
 	return {
-		query: "erpnext.controllers.queries.item_query"
+		query: "erpnext.controllers.queries.item_query",
+		filters: {'is_purchase_item': 1}
 	}
 }
 
diff --git a/erpnext/buying/doctype/purchase_common/purchase_common.js b/erpnext/buying/doctype/purchase_common/purchase_common.js
index 2e76516..6e27546 100644
--- a/erpnext/buying/doctype/purchase_common/purchase_common.js
+++ b/erpnext/buying/doctype/purchase_common/purchase_common.js
@@ -79,7 +79,8 @@
 				}
 			} else {
 				return{
-					query: "erpnext.controllers.queries.item_query"
+					query: "erpnext.controllers.queries.item_query",
+					filters: {'is_purchase_item': 1}
 				}
 			}
 		});
diff --git a/erpnext/crm/doctype/opportunity/opportunity.js b/erpnext/crm/doctype/opportunity/opportunity.js
index 21a7429..c9f1ffb 100644
--- a/erpnext/crm/doctype/opportunity/opportunity.js
+++ b/erpnext/crm/doctype/opportunity/opportunity.js
@@ -51,7 +51,8 @@
 
 		this.frm.set_query("item_code", "items", function() {
 			return {
-				query: "erpnext.controllers.queries.item_query"
+				query: "erpnext.controllers.queries.item_query",
+				filters: {'is_sales_item': 1}
 			};
 		});
 
diff --git a/erpnext/patches/v5_2/change_item_selects_to_checks.py b/erpnext/patches/v5_2/change_item_selects_to_checks.py
index dde0b56..1ee8f6c 100644
--- a/erpnext/patches/v5_2/change_item_selects_to_checks.py
+++ b/erpnext/patches/v5_2/change_item_selects_to_checks.py
@@ -4,8 +4,7 @@
 
 def execute():
 	fields = ("is_stock_item", "is_asset_item", "has_batch_no", "has_serial_no",
-		"inspection_required", "is_sub_contracted_item")
-
+		"is_sales_item", "is_purchase_item", "inspection_required", "is_sub_contracted_item")
 
 	# convert to 1 or 0
 	update_str = ", ".join(["`{0}`=if(`{0}`='Yes',1,0)".format(f) for f in fields])
diff --git a/erpnext/selling/sales_common.js b/erpnext/selling/sales_common.js
index d58adce..402ff11 100644
--- a/erpnext/selling/sales_common.js
+++ b/erpnext/selling/sales_common.js
@@ -66,7 +66,8 @@
 		if(this.frm.fields_dict["items"].grid.get_field('item_code')) {
 			this.frm.set_query("item_code", "items", function() {
 				return {
-					query: "erpnext.controllers.queries.item_query"
+					query: "erpnext.controllers.queries.item_query",
+					filters: {'is_sales_item': 1}
 				}
 			});
 		}
diff --git a/erpnext/setup/setup_wizard/sample_data.py b/erpnext/setup/setup_wizard/sample_data.py
index 8078ebc..955f663 100644
--- a/erpnext/setup/setup_wizard/sample_data.py
+++ b/erpnext/setup/setup_wizard/sample_data.py
@@ -11,7 +11,7 @@
 def make_sample_data():
 	"""Create a few opportunities, quotes, material requests, issues, todos, projects
 	to help the user get started"""
-	items = frappe.get_all("Item")
+	items = frappe.get_all("Item", {'is_sales_item': 1})
 
 	customers = frappe.get_all("Customer")
 	warehouses = frappe.get_all("Warehouse")
@@ -25,7 +25,7 @@
 	make_projects()
 
 	if items and warehouses:
-		make_material_request(items)
+		make_material_request(frappe.get_all("Item"))
 
 	frappe.db.commit()
 
diff --git a/erpnext/setup/setup_wizard/setup_wizard.py b/erpnext/setup/setup_wizard/setup_wizard.py
index c9679bd..191f169 100644
--- a/erpnext/setup/setup_wizard/setup_wizard.py
+++ b/erpnext/setup/setup_wizard/setup_wizard.py
@@ -318,6 +318,8 @@
 					"item_name": item,
 					"description": item,
 					"show_in_website": 1,
+					"is_sales_item": is_sales_item,
+					"is_purchase_item": is_purchase_item,
 					"is_stock_item": is_stock_item and 1 or 0,
 					"item_group": item_group,
 					"stock_uom": args.get("item_uom_" + str(i)),
diff --git a/erpnext/stock/doctype/item/item.json b/erpnext/stock/doctype/item/item.json
index b86378d..a4e3470 100644
--- a/erpnext/stock/doctype/item/item.json
+++ b/erpnext/stock/doctype/item/item.json
@@ -709,33 +709,6 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
-   "default": "Purchase", 
-   "fieldname": "default_material_request_type", 
-   "fieldtype": "Select", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_list_view": 0, 
-   "label": "Default Material Request Type", 
-   "length": 0, 
-   "no_copy": 0, 
-   "options": "Purchase\nMaterial Transfer\nMaterial Issue\nManufacture", 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }, 
-  {
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
    "depends_on": "is_stock_item", 
    "fieldname": "column_break1", 
    "fieldtype": "Column Break", 
@@ -1058,6 +1031,32 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "default": "1", 
+   "fieldname": "is_purchase_item", 
+   "fieldtype": "Check", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Is Purchase Item", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
    "default": "0.00", 
    "depends_on": "is_stock_item", 
    "description": "", 
@@ -1487,6 +1486,32 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "default": "1", 
+   "fieldname": "is_sales_item", 
+   "fieldtype": "Check", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Is Sales Item", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
    "default": "0", 
    "description": "Publish Item to hub.erpnext.com", 
    "fieldname": "publish_in_hub", 
@@ -2335,7 +2360,7 @@
  "issingle": 0, 
  "istable": 0, 
  "max_attachments": 1, 
- "modified": "2016-08-03 17:30:51.323382", 
+ "modified": "2016-08-16 01:59:49.494629", 
  "modified_by": "Administrator", 
  "module": "Stock", 
  "name": "Item",