diff --git a/erpnext/stock/report/stock_balance/stock_balance.js b/erpnext/stock/report/stock_balance/stock_balance.js
index db334f8..1af32ed 100644
--- a/erpnext/stock/report/stock_balance/stock_balance.js
+++ b/erpnext/stock/report/stock_balance/stock_balance.js
@@ -22,7 +22,40 @@
 			"label": __("Item"),
 			"fieldtype": "Link",
 			"width": "80",
-			"options": "Item"
+			"options": "Item",
+			"reqd": 1,
+			"on_change": function(me) {
+				frappe.query_reports["Stock Balance"].toggle_mandatory_filters(me);
+			}
+		},
+		{
+			"fieldname": "warehouse",
+			"label": __("Warehouse"),
+			"fieldtype": "Link",
+			"width": "80",
+			"options": "Warehouse",
+			"reqd": 1,
+			"on_change": function(me) {
+				frappe.query_reports["Stock Balance"].toggle_mandatory_filters(me);
+			}
+		},
+	],
+
+	"toggle_mandatory_filters": function(me) {
+		var values = me.get_values(false);
+		var item_filter = me.filters_by_name["item_code"];
+		var warehouse_filter = me.filters_by_name["warehouse"];
+
+		if (values.item_code) {
+			warehouse_filter.df.reqd = 0;
+		} else if (values.warehouse) {
+			item_filter.df.reqd = 0;
+		} else {
+			item_filter.df.reqd = 1;
+			warehouse_filter.df.reqd = 1;
 		}
-	]
+
+		item_filter.set_mandatory(values.item_code);
+		warehouse_filter.set_mandatory(values.warehouse);
+	}
 }
diff --git a/erpnext/stock/report/stock_balance/stock_balance.py b/erpnext/stock/report/stock_balance/stock_balance.py
index 7dd728f..d465050 100644
--- a/erpnext/stock/report/stock_balance/stock_balance.py
+++ b/erpnext/stock/report/stock_balance/stock_balance.py
@@ -9,7 +9,7 @@
 def execute(filters=None):
 	if not filters: filters = {}
 
-	columns = get_columns(filters)
+	columns = get_columns()
 	item_map = get_item_details(filters)
 	iwb_map = get_item_warehouse_map(filters)
 
@@ -30,8 +30,8 @@
 
 	return columns, data
 
-def get_columns(filters):
-	"""return columns based on filters"""
+def get_columns():
+	"""return columns"""
 
 	columns = [
 		_("Item")+":Link/Item:100",
@@ -68,9 +68,11 @@
 	if filters.get("item_code"):
 		conditions += " and item_code = '%s'" % frappe.db.escape(filters.get("item_code"), percent=False)
 
+	if filters.get("warehouse"):
+		conditions += " and warehouse = '%s'" % frappe.db.escape(filters.get("warehouse"), percent=False)
+
 	return conditions
 
-#get all details
 def get_stock_ledger_entries(filters):
 	conditions = get_conditions(filters)
 	return frappe.db.sql("""select item_code, warehouse, posting_date, actual_qty, valuation_rate,
@@ -125,9 +127,13 @@
 	return iwb_map
 
 def get_item_details(filters):
-	item_map = {}
-	for d in frappe.db.sql("select name, item_name, stock_uom, item_group, brand, \
-		description from tabItem", as_dict=1):
-		item_map.setdefault(d.name, d)
+	condition = ''
+	value = ()
+	if filters.get("item_code"):
+		condition = "where item_code=%s"
+		value = (filters["item_code"],)
 
-	return item_map
+	items = frappe.db.sql("""select name, item_name, stock_uom, item_group, brand, description
+		from tabItem {condition}""".format(condition=condition), value, as_dict=1)
+
+	return dict((d.name, d) for d in items)