diff --git a/erpnext/controllers/stock_controller.py b/erpnext/controllers/stock_controller.py
index 4aa1cad..2d2fff8 100644
--- a/erpnext/controllers/stock_controller.py
+++ b/erpnext/controllers/stock_controller.py
@@ -247,16 +247,17 @@
 		for d in self.items:
 			if not d.batch_no: continue
 
+			serial_nos = [sr.name for sr in frappe.get_all("Serial No",
+				{'batch_no': d.batch_no, 'status': 'Inactive'})]
+
+			if serial_nos:
+				frappe.db.set_value("Serial No", { 'name': ['in', serial_nos] }, "batch_no", None)
+
 			d.batch_no = None
 			d.db_set("batch_no", None)
 
 		for data in frappe.get_all("Batch",
 			{'reference_name': self.name, 'reference_doctype': self.doctype}):
-
-			serial_nos = [sr.name for sr in frappe.get_all("Serial No", {'batch_no': data.name})]
-			if serial_nos:
-				frappe.db.set_value("Serial No", { 'name': ['in', serial_nos] }, "batch_no", None)
-
 			frappe.delete_doc("Batch", data.name)
 
 	def get_sl_entries(self, d, args):