diff --git a/models/inventory/tests/testSerialNos.spec.ts b/models/inventory/tests/testSerialNos.spec.ts
new file mode 100644
index 00000000..8b808533
--- /dev/null
+++ b/models/inventory/tests/testSerialNos.spec.ts
@@ -0,0 +1,312 @@
+import { assertThrows } from 'backend/database/tests/helpers';
+import { ModelNameEnum } from 'models/types';
+import test from 'tape';
+import { closeTestFyo, getTestFyo, setupTestFyo } from 'tests/helpers';
+import { MovementType } from '../types';
+import { getItem, getStockMovement } from './helpers';
+
+const fyo = getTestFyo();
+
+setupTestFyo(fyo, __filename);
+
+const itemMap = {
+  Pen: {
+    name: 'Pen',
+    rate: 700,
+  },
+  Ink: {
+    name: 'Ink',
+    rate: 50,
+  },
+};
+
+const locationMap = {
+  LocationOne: 'LocationOne',
+  LocationTwo: 'LocationTwo',
+};
+
+const partyMap = {
+  partyOne: { name: 'Someone', Role: 'Both' },
+};
+
+const serialNoMap = {
+  serialOne: {
+    name: 'PN-AB001',
+    item: itemMap.Pen.name,
+  },
+  serialTwo: {
+    name: 'PN-AB002',
+    item: itemMap.Pen.name,
+  },
+  serialThree: {
+    name: 'PN-AB003',
+    item: itemMap.Pen.name,
+  },
+};
+
+test('create dummy items, locations, party & serialNos', async (t) => {
+  // Create Items
+  for (const { name, rate } of Object.values(itemMap)) {
+    const item = getItem(name, rate, false, true);
+    await fyo.doc.getNewDoc(ModelNameEnum.Item, item).sync();
+  }
+
+  // Create Locations
+  for (const name of Object.values(locationMap)) {
+    await fyo.doc.getNewDoc(ModelNameEnum.Location, { name }).sync();
+  }
+
+  // Create Party
+  await fyo.doc.getNewDoc(ModelNameEnum.Party, partyMap.partyOne).sync();
+
+  t.ok(
+    await fyo.db.exists(ModelNameEnum.Party, partyMap.partyOne.name),
+    'party created'
+  );
+
+  // Create SerialNos
+  for (const serialNo of Object.values(serialNoMap)) {
+    const doc = fyo.doc.getNewDoc(ModelNameEnum.SerialNo, serialNo);
+    await doc.sync();
+
+    const status = await fyo.getValue(
+      ModelNameEnum.SerialNo,
+      serialNo.name,
+      'status'
+    );
+    t.equal(
+      status,
+      'Inactive',
+      `${serialNo.name} exists and inital status Inactive`
+    );
+  }
+});
+
+test('serialNo enabled item, create stock movement, material receipt', async (t) => {
+  const { rate } = itemMap.Pen;
+  const serialNo =
+    serialNoMap.serialOne.name + '\n' + serialNoMap.serialTwo.name;
+  const stockMovement = await getStockMovement(
+    MovementType.MaterialReceipt,
+    new Date('2022-11-03T09:57:04.528'),
+    [
+      {
+        item: itemMap.Pen.name,
+        to: locationMap.LocationOne,
+        quantity: 2,
+        serialNo,
+        rate,
+      },
+    ],
+    fyo
+  );
+
+  await (await stockMovement.sync()).submit();
+
+  t.equal(
+    await fyo.db.getStockQuantity(
+      itemMap.Pen.name,
+      locationMap.LocationOne,
+      undefined,
+      undefined,
+      undefined,
+      serialNoMap.serialOne.name
+    ),
+    1,
+    'serialNo one has quantity one'
+  );
+
+  t.equal(
+    await fyo.db.getStockQuantity(
+      itemMap.Pen.name,
+      locationMap.LocationOne,
+      undefined,
+      undefined,
+      undefined,
+      serialNoMap.serialTwo.name
+    ),
+    1,
+    'serialNo two has quantity one'
+  );
+
+  t.equal(
+    await fyo.db.getStockQuantity(
+      itemMap.Pen.name,
+      locationMap.LocationOne,
+      undefined,
+      undefined,
+      undefined,
+      serialNoMap.serialThree.name
+    ),
+    null,
+    'serialNo three has no quantity'
+  );
+
+  t.equal(
+    await fyo.db.getStockQuantity(
+      itemMap.Ink.name,
+      locationMap.LocationOne,
+      undefined,
+      undefined,
+      undefined,
+      serialNoMap.serialOne.name
+    ),
+    null,
+    'non transacted item has no quantity'
+  );
+});
+
+test('serialNo enabled item, create stock movement, material issue', async (t) => {
+  const { rate } = itemMap.Pen;
+  const quantity = 1;
+
+  const stockMovement = await getStockMovement(
+    MovementType.MaterialIssue,
+    new Date('2022-11-03T10:00:00.528'),
+    [
+      {
+        item: itemMap.Pen.name,
+        from: locationMap.LocationOne,
+        serialNo: serialNoMap.serialOne.name,
+        quantity,
+        rate,
+      },
+    ],
+    fyo
+  );
+
+  await (await stockMovement.sync()).submit();
+  t.equal(
+    await fyo.db.getStockQuantity(
+      itemMap.Pen.name,
+      locationMap.LocationOne,
+      undefined,
+      undefined,
+      undefined,
+      serialNoMap.serialOne.name
+    ),
+    0,
+    'serialNo one quantity transacted out'
+  );
+
+  t.equal(
+    await fyo.db.getStockQuantity(
+      itemMap.Pen.name,
+      locationMap.LocationOne,
+      undefined,
+      undefined,
+      undefined,
+      serialNoMap.serialTwo.name
+    ),
+    1,
+    'serialNo two quantity intact'
+  );
+});
+
+test('serialNo enabled item, create stock movement, material transfer', async (t) => {
+  const { rate } = itemMap.Pen;
+  const quantity = 1;
+  const serialNo = serialNoMap.serialTwo.name;
+
+  const stockMovement = await getStockMovement(
+    MovementType.MaterialTransfer,
+    new Date('2022-11-03T09:58:04.528'),
+    [
+      {
+        item: itemMap.Pen.name,
+        from: locationMap.LocationOne,
+        to: locationMap.LocationTwo,
+        serialNo,
+        quantity,
+        rate,
+      },
+    ],
+    fyo
+  );
+
+  await (await stockMovement.sync()).submit();
+  t.equal(
+    await fyo.db.getStockQuantity(
+      itemMap.Pen.name,
+      locationMap.LocationOne,
+      undefined,
+      undefined,
+      undefined,
+      serialNo
+    ),
+    0,
+    'location one serialNoTwo transacted out'
+  );
+
+  t.equal(
+    await fyo.db.getStockQuantity(
+      itemMap.Pen.name,
+      locationMap.LocationTwo,
+      undefined,
+      undefined,
+      undefined,
+      serialNo
+    ),
+    quantity,
+    'location two serialNo transacted in'
+  );
+});
+
+test('serialNo enabled item, create invalid stock movements', async (t) => {
+  const { name, rate } = itemMap.Pen;
+  const quantity = await fyo.db.getStockQuantity(
+    itemMap.Pen.name,
+    locationMap.LocationTwo,
+    undefined,
+    undefined,
+    undefined,
+    serialNoMap.serialTwo.name
+  );
+
+  t.equal(quantity, 1, 'location two, serialNo one has quantity');
+  if (!quantity) {
+    return;
+  }
+
+  let stockMovement = await getStockMovement(
+    MovementType.MaterialIssue,
+    new Date('2022-11-03T09:59:04.528'),
+    [
+      {
+        item: itemMap.Pen.name,
+        from: locationMap.LocationTwo,
+        serialNo: serialNoMap.serialOne.name,
+        quantity,
+        rate,
+      },
+    ],
+    fyo
+  );
+
+  await assertThrows(
+    async () => (await stockMovement.sync()).submit(),
+    'invalid stockMovement with insufficient quantity did not throw'
+  );
+
+  stockMovement = await getStockMovement(
+    MovementType.MaterialIssue,
+    new Date('2022-11-03T09:59:04.528'),
+    [
+      {
+        item: itemMap.Pen.name,
+        from: locationMap.LocationTwo,
+        quantity,
+        rate,
+      },
+    ],
+    fyo
+  );
+
+  await assertThrows(
+    async () => (await stockMovement.sync()).submit(),
+    'invalid stockMovement without serialNo did not throw'
+  );
+  t.equal(await fyo.db.getStockQuantity(name), 1, 'item still has quantity');
+});
+
+closeTestFyo(fyo, __filename);