diff --git a/erpnext/manufacturing/doctype/work_order/test_work_order.py b/erpnext/manufacturing/doctype/work_order/test_work_order.py
index c72232a..e1c1069 100644
--- a/erpnext/manufacturing/doctype/work_order/test_work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/test_work_order.py
@@ -1383,8 +1383,9 @@
 
 		# Inward raw materials in Stores warehouse
 		ste_doc.submit()
+		ste_doc.reload()
 
-		serial_nos_list = sorted(get_serial_nos(ste_doc.items[0].serial_no))
+		serial_nos_list = sorted(get_serial_nos_from_bundle(ste_doc.items[0].serial_and_batch_bundle))
 
 		wo_doc = make_wo_order_test_record(production_item=fg_item, qty=4)
 		transferred_ste_doc = frappe.get_doc(
@@ -1396,19 +1397,22 @@
 
 		# First Manufacture stock entry
 		manufacture_ste_doc1 = frappe.get_doc(make_stock_entry(wo_doc.name, "Manufacture", 1))
+		manufacture_ste_doc1.submit()
+		manufacture_ste_doc1.reload()
 
 		# Serial nos should be same as transferred Serial nos
-		self.assertEqual(get_serial_nos(manufacture_ste_doc1.items[0].serial_no), serial_nos_list[0:1])
+		self.assertEqual(
+			sorted(get_serial_nos_from_bundle(manufacture_ste_doc1.items[0].serial_and_batch_bundle)),
+			serial_nos_list[0:1],
+		)
 		self.assertEqual(manufacture_ste_doc1.items[0].qty, 1)
 
-		manufacture_ste_doc1.submit()
-
 		# Second Manufacture stock entry
-		manufacture_ste_doc2 = frappe.get_doc(make_stock_entry(wo_doc.name, "Manufacture", 2))
+		manufacture_ste_doc2 = frappe.get_doc(make_stock_entry(wo_doc.name, "Manufacture", 3))
 
 		# Serial nos should be same as transferred Serial nos
-		self.assertEqual(get_serial_nos(manufacture_ste_doc2.items[0].serial_no), serial_nos_list[1:3])
-		self.assertEqual(manufacture_ste_doc2.items[0].qty, 2)
+		self.assertEqual(get_serial_nos(manufacture_ste_doc2.items[0].serial_no), serial_nos_list[1:4])
+		self.assertEqual(manufacture_ste_doc2.items[0].qty, 3)
 
 	def test_backflushed_serial_no_batch_raw_materials_based_on_transferred(self):
 		frappe.db.set_single_value(
@@ -1542,19 +1546,9 @@
 				row.qty -= 2
 				row.transfer_qty -= 2
 
-			if not row.serial_and_batch_bundle:
-				continue
-
-			bundle_id = row.serial_and_batch_bundle
-			bundle_doc = frappe.get_doc("Serial and Batch Bundle", bundle_id)
-			if bundle_doc.has_serial_no:
-				bundle_doc.set("entries", bundle_doc.entries[0:5])
-			else:
-				for bundle_row in bundle_doc.entries:
-					bundle_row.qty += 2
-
-			bundle_doc.save()
-			bundle_doc.load_from_db()
+			if row.serial_no:
+				serial_nos = get_serial_nos(row.serial_no)
+				row.serial_no = "\n".join(serial_nos[:5])
 
 		ste_doc.save()
 		ste_doc.submit()
@@ -1897,6 +1891,71 @@
 			"Manufacturing Settings", {"disable_capacity_planning": 1, "mins_between_operations": 0}
 		)
 
+	def test_partial_material_consumption_with_batch(self):
+		from erpnext.stock.doctype.stock_entry.test_stock_entry import (
+			make_stock_entry as make_stock_entry_test_record,
+		)
+
+		frappe.db.set_single_value("Manufacturing Settings", "material_consumption", 1)
+		frappe.db.set_single_value(
+			"Manufacturing Settings",
+			"backflush_raw_materials_based_on",
+			"Material Transferred for Manufacture",
+		)
+
+		fg_item = make_item(
+			"Test FG Item For Partial Material Consumption",
+			{"is_stock_item": 1},
+		).name
+
+		rm_item = make_item(
+			"Test RM Item For Partial Material Consumption",
+			{
+				"is_stock_item": 1,
+				"has_batch_no": 1,
+				"create_new_batch": 1,
+				"batch_number_series": "TST-BATCH-PMCC-.####",
+			},
+		).name
+
+		make_bom(
+			item=fg_item,
+			source_warehouse="Stores - _TC",
+			raw_materials=[rm_item],
+		)
+
+		make_stock_entry_test_record(
+			purpose="Material Receipt",
+			item_code=rm_item,
+			target="Stores - _TC",
+			qty=10,
+			basic_rate=100,
+		)
+
+		wo_order = make_wo_order_test_record(item=fg_item, qty=10)
+
+		stock_entry = frappe.get_doc(
+			make_stock_entry(wo_order.name, "Material Transfer for Manufacture", 10)
+		)
+		stock_entry.submit()
+		stock_entry.reload()
+
+		batch_no = get_batch_from_bundle(stock_entry.items[0].serial_and_batch_bundle)
+
+		stock_entry = frappe.get_doc(
+			make_stock_entry(wo_order.name, "Material Consumption for Manufacture", 10)
+		)
+
+		self.assertEqual(stock_entry.items[0].batch_no, batch_no)
+		self.assertEqual(stock_entry.items[0].use_serial_batch_fields, 1)
+
+		frappe.db.set_single_value("Manufacturing Settings", "material_consumption", 0)
+		frappe.db.set_single_value(
+			"Manufacturing Settings",
+			"backflush_raw_materials_based_on",
+			"BOM",
+		)
+
 
 def make_operation(**kwargs):
 	kwargs = frappe._dict(kwargs)
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index 399e698..d8d9d68 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -2168,23 +2168,42 @@
 		if not qty:
 			return
 
+		use_serial_batch_fields = frappe.db.get_single_value("Stock Settings", "use_serial_batch_fields")
+
 		ste_item_details = {
 			"from_warehouse": item.warehouse,
 			"to_warehouse": "",
 			"qty": qty,
 			"item_name": item.item_name,
-			"serial_and_batch_bundle": create_serial_and_batch_bundle(self, row, item, "Outward"),
+			"serial_and_batch_bundle": create_serial_and_batch_bundle(self, row, item, "Outward")
+			if not use_serial_batch_fields
+			else "",
 			"description": item.description,
 			"stock_uom": item.stock_uom,
 			"expense_account": item.expense_account,
 			"cost_center": item.buying_cost_center,
 			"original_item": item.original_item,
+			"serial_no": "\n".join(row.serial_nos)
+			if row.serial_nos and not row.batches_to_be_consume
+			else "",
+			"use_serial_batch_fields": use_serial_batch_fields,
 		}
 
 		if self.is_return:
 			ste_item_details["to_warehouse"] = item.s_warehouse
 
-		self.add_to_stock_entry_detail({item.item_code: ste_item_details})
+		if use_serial_batch_fields and not row.serial_no and row.batches_to_be_consume:
+			for batch_no, batch_qty in row.batches_to_be_consume.items():
+				ste_item_details.update(
+					{
+						"batch_no": batch_no,
+						"qty": batch_qty,
+					}
+				)
+
+				self.add_to_stock_entry_detail({item.item_code: ste_item_details})
+		else:
+			self.add_to_stock_entry_detail({item.item_code: ste_item_details})
 
 	@staticmethod
 	def get_serial_nos_based_on_transferred_batch(batch_no, serial_nos) -> list:
@@ -2335,6 +2354,9 @@
 				"item_name",
 				"serial_and_batch_bundle",
 				"allow_zero_valuation_rate",
+				"use_serial_batch_fields",
+				"batch_no",
+				"serial_no",
 			]:
 				if item_row.get(field):
 					se_child.set(field, item_row.get(field))
@@ -2983,7 +3005,7 @@
 			if row.batch_no:
 				item_data.batch_details[row.batch_no] += row.qty
 
-			if row.batch_nos:
+			elif row.batch_nos:
 				for batch_no, qty in row.batch_nos.items():
 					item_data.batch_details[batch_no] += qty
 
@@ -2991,7 +3013,7 @@
 				item_data.serial_nos.extend(get_serial_nos(row.serial_no))
 				item_data.serial_nos.sort()
 
-			if row.serial_nos:
+			elif row.serial_nos:
 				item_data.serial_nos.extend(get_serial_nos(row.serial_nos))
 				item_data.serial_nos.sort()
 		else:
@@ -3001,7 +3023,7 @@
 			if row.batch_no:
 				item_data.batch_details[row.batch_no] -= row.qty
 
-			if row.batch_nos:
+			elif row.batch_nos:
 				for batch_no, qty in row.batch_nos.items():
 					item_data.batch_details[batch_no] += qty
 
@@ -3009,7 +3031,7 @@
 				for serial_no in get_serial_nos(row.serial_no):
 					item_data.serial_nos.remove(serial_no)
 
-			if row.serial_nos:
+			elif row.serial_nos:
 				for serial_no in get_serial_nos(row.serial_nos):
 					item_data.serial_nos.remove(serial_no)