diff --git a/home/page/latest_updates/latest_updates.js b/home/page/latest_updates/latest_updates.js
index e11b9c9..f254bf2 100644
--- a/home/page/latest_updates/latest_updates.js
+++ b/home/page/latest_updates/latest_updates.js
@@ -1,6 +1,8 @@
 erpnext.updates = [
 	["2nd May", ["Buying: Warehouse must belong to same company as transaction",
-		"Price List": "Added Currency Field. One price list can have only one currency"]],
+		"Price List: Added Currency Field. One price list can have only one currency",
+		"Item: Naming can now be by series or item code",
+		"Naming Series: Set number of digits in series (optionally)"]],
 	["18th April", ["Cost Center: Set a default Cost Center for a Company"]],
 	["12th April", ["Employee: List of Leave Approvers who can approve the Employee's Leave Applications"]],
 	["10th April", ["Redesigned File Uploads and added File Manager in Setup"]],
diff --git a/setup/doctype/global_defaults/global_defaults.py b/setup/doctype/global_defaults/global_defaults.py
index 8275513..191a47e 100644
--- a/setup/doctype/global_defaults/global_defaults.py
+++ b/setup/doctype/global_defaults/global_defaults.py
@@ -31,6 +31,7 @@
 	'item_group': 'default_item_group',
 	'customer_group': 'default_customer_group',
 	'cust_master_name': 'cust_master_name', 
+	"item_naming_by": "item_naming_by",
 	'supplier_type': 'default_supplier_type',
 	'supp_master_name': 'supp_master_name', 
 	'territory': 'default_territory',
diff --git a/setup/doctype/global_defaults/global_defaults.txt b/setup/doctype/global_defaults/global_defaults.txt
index 7f81618..853bb57 100644
--- a/setup/doctype/global_defaults/global_defaults.txt
+++ b/setup/doctype/global_defaults/global_defaults.txt
@@ -1,8 +1,8 @@
 [
  {
-  "creation": "2013-03-25 11:08:14", 
+  "creation": "2013-04-01 15:05:24", 
   "docstatus": 0, 
-  "modified": "2013-03-28 15:41:03", 
+  "modified": "2013-05-02 15:05:21", 
   "modified_by": "Administrator", 
   "owner": "Administrator"
  }, 
@@ -27,8 +27,6 @@
   "permlevel": 0
  }, 
  {
-  "amend": 0, 
-  "cancel": 0, 
   "create": 1, 
   "doctype": "DocPerm", 
   "name": "__common__", 
@@ -169,6 +167,13 @@
  }, 
  {
   "doctype": "DocField", 
+  "fieldname": "item_naming_by", 
+  "fieldtype": "Select", 
+  "label": "Item Naming By", 
+  "options": "Item Code\nNaming Series"
+ }, 
+ {
+  "doctype": "DocField", 
   "fieldname": "default_item_group", 
   "fieldtype": "Link", 
   "label": "Default Item Group", 
@@ -503,6 +508,11 @@
   "read_only": 0
  }, 
  {
+  "amend": 0, 
+  "cancel": 0, 
+  "doctype": "DocPerm"
+ }, 
+ {
   "doctype": "DocPerm"
  }
 ]
\ No newline at end of file
diff --git a/setup/doctype/naming_series/naming_series.py b/setup/doctype/naming_series/naming_series.py
index 7b804f8..3a6b36d 100644
--- a/setup/doctype/naming_series/naming_series.py
+++ b/setup/doctype/naming_series/naming_series.py
@@ -123,7 +123,14 @@
 			
 	def validate_series_name(self, n):
 		import re
-		if not re.match('[a-zA-Z0-9]+(([-/][a-zA-Z0-9])?[-/][a-zA-Z0-9]*)*',n):
+		if "." in n:
+			parts = n.split(".")
+			if len(parts) > 2:
+				msgprint("Only one dot (.) allowed in " + n, raise_exception=1)
+			if not re.match("#+$", parts[-1]):
+				msgprint("Numbering series must be in hashes (e.g. ####)", raise_exception=1)
+			n = n[0]
+		if not re.match("^[a-zA-Z0-9-/]*$", n):
 			msgprint('Special Characters except "-" and "/" not allowed in naming series')
 			raise Exception
 		
diff --git a/setup/doctype/naming_series/naming_series.txt b/setup/doctype/naming_series/naming_series.txt
index 3de9e5c..0dab9e9 100644
--- a/setup/doctype/naming_series/naming_series.txt
+++ b/setup/doctype/naming_series/naming_series.txt
@@ -1,8 +1,8 @@
 [
  {
-  "creation": "2013-01-10 16:34:23", 
+  "creation": "2013-01-25 11:35:08", 
   "docstatus": 0, 
-  "modified": "2013-01-22 14:56:34", 
+  "modified": "2013-05-02 15:34:41", 
   "modified_by": "Administrator", 
   "owner": "Administrator"
  }, 
@@ -25,8 +25,6 @@
   "permlevel": 0
  }, 
  {
-  "amend": 0, 
-  "cancel": 0, 
   "create": 1, 
   "doctype": "DocPerm", 
   "name": "__common__", 
@@ -62,7 +60,7 @@
   "fieldname": "help_html", 
   "fieldtype": "HTML", 
   "label": "Help HTML", 
-  "options": "<div class=\"help-box\">\nEdit list of Series in the box below. Each Series Prefix on a new line.<br><br>\nAllowed special characters are \"/\" and \"-\"<br>\nExamples:<br>\nINV-<br>\nINV-10-<br>\nINVK-<br>\n</div>"
+  "options": "<div class=\"well\">\nEdit list of Series in the box below. Rules:\n<ul>\n<li>Each Series Prefix on a new line.</li>\n<li>Allowed special characters are \"/\" and \"-\"</li>\n<li>Optionally, set the number of digits in the series using dot (.) followed by hashes (#). For example, \".####\" means that the series will have four digits. Default is five digits.</li>\n</ul>\nExamples:<br>\nINV-<br>\nINV-10-<br>\nINVK-<br>\nINV-.####<br>\n</div>"
  }, 
  {
   "doctype": "DocField", 
diff --git a/stock/doctype/item/item.js b/stock/doctype/item/item.js
index 2635f3e..a344ad3 100644
--- a/stock/doctype/item/item.js
+++ b/stock/doctype/item/item.js
@@ -20,7 +20,11 @@
 	// make sensitive fields(has_serial_no, is_stock_item, valuation_method)
 	// read only if any stock ledger entry exists
 
-	cur_frm.toggle_enable("item_code", doc.__islocal);
+	cur_frm.toggle_display("naming_series", sys_defaults.item_naming_by=="Naming Series" 
+		&& doc.__islocal)
+	cur_frm.toggle_display("item_code", sys_defaults.item_naming_by!="Naming Series"
+		&& doc.__islocal)
+
 
 	if ((!doc.__islocal) && (doc.is_stock_item == 'Yes')) {
 		var callback = function(r, rt) {
diff --git a/stock/doctype/item/item.py b/stock/doctype/item/item.py
index 8a804d8..6327504 100644
--- a/stock/doctype/item/item.py
+++ b/stock/doctype/item/item.py
@@ -27,6 +27,13 @@
 class PriceListCurrencyMismatch(Exception): pass
 
 class DocType(DocListController):
+	def autoname(self):
+		if webnotes.conn.get_default("item_naming_by")=="Naming Series":
+			from webnotes.model.doc import make_autoname
+			self.doc.item_code = make_autoname(self.doc.naming_series+'.#####')
+
+		self.doc.name = self.doc.item_code
+			
 	def validate(self):
 		if not self.doc.stock_uom:
 			msgprint(_("Please enter Default Unit of Measure"), raise_exception=1)
diff --git a/stock/doctype/item/item.txt b/stock/doctype/item/item.txt
index 3497402..274719e 100644
--- a/stock/doctype/item/item.txt
+++ b/stock/doctype/item/item.txt
@@ -1,8 +1,8 @@
 [
  {
-  "creation": "2013-03-28 15:56:38", 
+  "creation": "2013-04-25 10:56:55", 
   "docstatus": 0, 
-  "modified": "2013-04-23 11:44:39", 
+  "modified": "2013-05-02 15:10:53", 
   "modified_by": "Administrator", 
   "owner": "Administrator"
  }, 
@@ -34,7 +34,6 @@
   "parent": "Item", 
   "parentfield": "permissions", 
   "parenttype": "DocType", 
-  "permlevel": 0, 
   "read": 1, 
   "submit": 0
  }, 
@@ -52,6 +51,13 @@
   "read_only": 0
  }, 
  {
+  "doctype": "DocField", 
+  "fieldname": "naming_series", 
+  "fieldtype": "Select", 
+  "label": "Naming Series", 
+  "options": "\nITEM"
+ }, 
+ {
   "description": "Item will be saved by this name in the data base.", 
   "doctype": "DocField", 
   "fieldname": "item_code", 
@@ -878,16 +884,11 @@
   "read_only": 0
  }, 
  {
-  "cancel": 1, 
-  "create": 1, 
-  "doctype": "DocPerm", 
-  "role": "Material Master Manager", 
-  "write": 1
- }, 
- {
   "cancel": 0, 
   "create": 0, 
   "doctype": "DocPerm", 
+  "permlevel": 1, 
+  "report": 0, 
   "role": "Material Manager", 
   "write": 0
  }, 
@@ -895,7 +896,63 @@
   "cancel": 0, 
   "create": 0, 
   "doctype": "DocPerm", 
+  "permlevel": 0, 
+  "report": 1, 
+  "role": "Material Manager", 
+  "write": 0
+ }, 
+ {
+  "cancel": 0, 
+  "create": 0, 
+  "doctype": "DocPerm", 
+  "permlevel": 1, 
+  "report": 0, 
   "role": "Material User", 
   "write": 0
+ }, 
+ {
+  "cancel": 0, 
+  "create": 0, 
+  "doctype": "DocPerm", 
+  "permlevel": 0, 
+  "report": 1, 
+  "role": "Material User", 
+  "write": 0
+ }, 
+ {
+  "cancel": 1, 
+  "create": 1, 
+  "doctype": "DocPerm", 
+  "permlevel": 0, 
+  "report": 1, 
+  "role": "Material Master Manager", 
+  "write": 1
+ }, 
+ {
+  "cancel": 0, 
+  "create": 0, 
+  "doctype": "DocPerm", 
+  "permlevel": 1, 
+  "report": 0, 
+  "role": "Material Master Manager", 
+  "write": 0
+ }, 
+ {
+  "cancel": 1, 
+  "create": 1, 
+  "doctype": "DocPerm", 
+  "permlevel": 0, 
+  "report": 1, 
+  "role": "System Manager", 
+  "write": 1
+ }, 
+ {
+  "cancel": 0, 
+  "create": 0, 
+  "doctype": "DocPerm", 
+  "permlevel": 1, 
+  "report": 0, 
+  "role": "System Manager", 
+  "write": 0
  }
 ]
\ No newline at end of file