fix: standalone sales invoice return should not fallback to item master for valuation rate

(cherry picked from commit a85a0ae)

Author: mihir-kandoi

erpnext/accounts/doctype/sales_invoice_item/sales_invoice_item.json

@@ -843,6 +843,7 @@
    "fieldtype": "Currency",
    "label": "Incoming Rate (Costing)",
    "no_copy": 1,
+   "non_negative": 1,
    "options": "Company:company:default_currency",
    "print_hide": 1
   },
@@ -1009,7 +1010,7 @@
  "idx": 1,
  "istable": 1,
  "links": [],
- "modified": "2026-02-15 21:08:57.341638",
+ "modified": "2026-02-23 14:37:14.853941",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Sales Invoice Item",

erpnext/accounts/report/gross_profit/test_gross_profit.py

@@ -444,6 +444,7 @@ def test_standalone_cr_notes(self):
 			qty=-1, rate=100, posting_date=nowdate(), do_not_save=True, do_not_submit=True
 		)
 		sinv.is_return = 1
+		sinv.items[0].allow_zero_valuation_rate = 1
 		sinv = sinv.save().submit()
 
 		filters = frappe._dict(

erpnext/controllers/selling_controller.py

@@ -498,10 +498,34 @@ def update_reserved_qty(self):
 				sales_order.update_reserved_qty(so_item_rows)
 
 	def set_incoming_rate(self):
+		def reset_incoming_rate():
+			old_item = next(
+				(
+					item
+					for item in (old_doc.get("items") + (old_doc.get("packed_items") or []))
+					if item.name == d.name
+				),
+				None,
+			)
+			if old_item:
+				old_qty = flt(old_item.get("stock_qty") or old_item.get("actual_qty") or old_item.get("qty"))
+				if (
+					old_item.item_code != d.item_code
+					or old_item.warehouse != d.warehouse
+					or old_qty != qty
+					or old_item.serial_no != d.serial_no
+					or get_serial_nos(old_item.serial_and_batch_bundle)
+					!= get_serial_nos(d.serial_and_batch_bundle)
+					or old_item.batch_no != d.batch_no
+					or get_batch_nos(old_item.serial_and_batch_bundle)
+					!= get_batch_nos(d.serial_and_batch_bundle)
+				):
+					d.incoming_rate = 0
+
 		if self.doctype not in ("Delivery Note", "Sales Invoice"):
 			return
 
-		from erpnext.stock.serial_batch_bundle import get_batch_nos
+		from erpnext.stock.serial_batch_bundle import get_batch_nos, get_serial_nos
 
 		allow_at_arms_length_price = frappe.get_cached_value(
 			"Stock Settings", None, "allow_internal_transfer_at_arms_length_price"
@@ -510,6 +534,8 @@ def set_incoming_rate(self):
 			"Selling Settings", "set_zero_rate_for_expired_batch"
 		)
 
+		is_standalone = self.is_return and not self.return_against
+
 		old_doc = self.get_doc_before_save()
 		items = self.get("items") + (self.get("packed_items") or [])
 		for d in items:
@@ -541,27 +567,7 @@ def set_incoming_rate(self):
 				qty = flt(d.get("stock_qty") or d.get("actual_qty") or d.get("qty"))
 
 				if old_doc:
-					old_item = next(
-						(
-							item
-							for item in (old_doc.get("items") + (old_doc.get("packed_items") or []))
-							if item.name == d.name
-						),
-						None,
-					)
-					if old_item:
-						old_qty = flt(
-							old_item.get("stock_qty") or old_item.get("actual_qty") or old_item.get("qty")
-						)
-						if (
-							old_item.item_code != d.item_code
-							or old_item.warehouse != d.warehouse
-							or old_qty != qty
-							or old_item.batch_no != d.batch_no
-							or get_batch_nos(old_item.serial_and_batch_bundle)
-							!= get_batch_nos(d.serial_and_batch_bundle)
-						):
-							d.incoming_rate = 0
+					reset_incoming_rate()
 
 				if (
 					not d.incoming_rate
@@ -583,11 +589,12 @@ def set_incoming_rate(self):
 							"voucher_type": self.doctype,
 							"voucher_no": self.name,
 							"voucher_detail_no": d.name,
-							"allow_zero_valuation": d.get("allow_zero_valuation"),
+							"allow_zero_valuation": d.get("allow_zero_valuation_rate"),
 							"batch_no": d.batch_no,
 							"serial_no": d.serial_no,
 						},
-						raise_error_if_no_rate=False,
+						raise_error_if_no_rate=is_standalone,
+						fallbacks=not is_standalone,
 					)
 
 				if (

erpnext/stock/stock_ledger.py

@@ -1910,6 +1910,7 @@ def get_valuation_rate(
 	allow_zero_rate=False,
 	currency=None,
 	company=None,
+	fallbacks=True,
 	raise_error_if_no_rate=True,
 	batch_no=None,
 	serial_and_batch_bundle=None,
@@ -1970,23 +1971,20 @@ def get_valuation_rate(
 	):
 		return flt(last_valuation_rate[0][0])
 
-	# If negative stock allowed, and item delivered without any incoming entry,
-	# system does not found any SLE, then take valuation rate from Item
-	valuation_rate = frappe.db.get_value("Item", item_code, "valuation_rate")
-
-	if not valuation_rate:
-		# try Item Standard rate
-		valuation_rate = frappe.db.get_value("Item", item_code, "standard_rate")
-
-		if not valuation_rate:
-			# try in price list
-			valuation_rate = frappe.db.get_value(
+	if fallbacks:
+		# If negative stock allowed, and item delivered without any incoming entry,
+		# system does not found any SLE, then take valuation rate from Item
+		if rate := (
+			frappe.db.get_value("Item", item_code, "valuation_rate")
+			or frappe.db.get_value("Item", item_code, "standard_rate")
+			or frappe.db.get_value(
 				"Item Price", dict(item_code=item_code, buying=1, currency=currency), "price_list_rate"
 			)
+		):
+			return flt(rate)
 
 	if (
 		not allow_zero_rate
-		and not valuation_rate
 		and raise_error_if_no_rate
 		and cint(erpnext.is_perpetual_inventory_enabled(company))
 	):
@@ -2016,8 +2014,6 @@ def get_valuation_rate(
 
 		frappe.throw(msg=msg, title=_("Valuation Rate Missing"))
 
-	return valuation_rate
-
 
 def update_qty_in_future_sle(args, allow_negative_stock=False):
 	"""Recalculate Qty after Transaction in future SLEs based on current SLE."""

erpnext/stock/utils.py

@@ -237,7 +237,7 @@ def _create_bin(item_code, warehouse):
 
 
 @frappe.whitelist()
-def get_incoming_rate(args, raise_error_if_no_rate=True):
+def get_incoming_rate(args, raise_error_if_no_rate=True, fallbacks: bool = True):
 	"""Get Incoming Rate based on valuation method"""
 	from erpnext.stock.stock_ledger import get_previous_sle, get_valuation_rate
 
@@ -325,6 +325,7 @@ def get_incoming_rate(args, raise_error_if_no_rate=True):
 			args.get("allow_zero_valuation"),
 			currency=erpnext.get_company_currency(args.get("company")),
 			company=args.get("company"),
+			fallbacks=fallbacks,
 			raise_error_if_no_rate=raise_error_if_no_rate,
 		)