Local Purchase & Sales with Inventory

1) Select Product/Service -> Stock Item
Create the stock item as below:-
Create Item

2) Record purchase transaction
New Vouchers -> Local Purchase
Type the item name in "Select Product/Service" box
Local Purchase

3) Fill all required information and save purchase invoice as below:-
Purchase Preview

4) Record Sales Transaction of the newly created item:- 
5)  Click on Reports -> Stock Summary / Stock Movements / Stock Query  / Stock Search to view  stock

Stock Summary