diff --git a/client/src/modules/stock/StockExitForm.service.js b/client/src/modules/stock/StockExitForm.service.js
index 93b0a2f6da..3b8f4694b0 100644
--- a/client/src/modules/stock/StockExitForm.service.js
+++ b/client/src/modules/stock/StockExitForm.service.js
@@ -50,9 +50,11 @@ function StockExitFormService(
     this.cache = AppCache(cacheKey);
     this.details = { is_exit : 1 };
     this.store = new Store({ identifier : 'uuid', data : [] });
-    this.allowExpired = true;
     this.exitTypePredefined = false;
 
+    // this flag will filter out lots from the display that contain expired elements
+    this.allowExpired = true;
+
     // this variable is private and will contain the stock for the current depot.
     this._pool = new Pool('lot_uuid', []);
 
@@ -159,11 +161,7 @@ function StockExitFormService(
     // get the quantity in stock for this depot
     return Depots.getStockQuantityForDate(depotUuid, parameters)
       .then(stock => {
-
-        const rawStock = this.allowExpired ? stock
-          : stock.filter(lot => lot.is_asset || !lot.is_expired);
-
-        const available = rawStock
+        const available = stock
           .map(item => {
             const lot = new Lot(item);
 
@@ -195,6 +193,7 @@ function StockExitFormService(
   StockExitForm.prototype.listLotsForInventory = function listLotsForInventory(inventoryUuid, lotUuid) {
     const available = this._pool.list()
       .filter(row => row.inventory_uuid === inventoryUuid)
+      .filter(row => (this.allowExpired ? true : !row.isExpired(this.details.date)))
       .sort((a, b) => a.expiration_date > b.expiration_date);
 
     if (lotUuid) {
@@ -208,7 +207,11 @@ function StockExitFormService(
   };
 
   StockExitForm.prototype.listAvailableInventory = function listAvailableInventory() {
-    return util.getUniqueBy(this._pool.list(), 'inventory_uuid');
+    // prefilter by the expiration condition
+    const available = this._pool.list()
+      .filter(row => (this.allowExpired ? true : !row.isExpired(this.details.date)));
+
+    return util.getUniqueBy(available, 'inventory_uuid');
   };
 
   /**
diff --git a/client/src/modules/stock/exit/exit.js b/client/src/modules/stock/exit/exit.js
index 25ad6e87f6..c8fe3f9e9d 100644
--- a/client/src/modules/stock/exit/exit.js
+++ b/client/src/modules/stock/exit/exit.js
@@ -7,9 +7,7 @@ StockExitController.$inject = [
   'StockExitFormService', 'StockEntryExitTypeService', 'uiGridConstants', 'GridExportService', 'ShipmentService',
   'DepotService', '$timeout', 'BarcodeService',
 ];
-
-/**
- * @class StockExitController
+/** @class StockExitController
  *
  * @description
  * This controller is responsible to handle stock exit module.
@@ -25,6 +23,9 @@ function StockExitController(
 
   vm.stockForm = new StockForm('StockExit');
 
+  // set allowExpired to be false
+  vm.stockForm.setAllowExpired(false);
+
   vm.gridApi = {};
   vm.ROW_ERROR_FLAG = bhConstants.grid.ROW_ERROR_FLAG;
   vm.DATE_FMT = bhConstants.dates.format;
@@ -182,6 +183,13 @@ function StockExitController(
       break;
     }
 
+    // only allow expired stock if we are exiting to stock loss
+    if (exitType.label === 'loss') {
+      vm.stockForm.setAllowExpired(true);
+    } else {
+      vm.stockForm.setAllowExpired(false);
+    }
+
     vm.validate();
   }
 
@@ -204,6 +212,7 @@ function StockExitController(
     // Handle startups from a shipment
     if (params.shipment) {
       vm.loading = true;
+
       Shipments.readAll(params.shipment)
         .then(shipment => {
           vm.shipment = shipment;