diff --git a/erpnext/accounts/doctype/accounting_dimension/accounting_dimension.py b/erpnext/accounts/doctype/accounting_dimension/accounting_dimension.py
index cfe5e6e..3a2c3cb 100644
--- a/erpnext/accounts/doctype/accounting_dimension/accounting_dimension.py
+++ b/erpnext/accounts/doctype/accounting_dimension/accounting_dimension.py
@@ -265,20 +265,21 @@
 
 @frappe.whitelist()
 def get_dimensions(with_cost_center_and_project=False):
-	dimension_filters = frappe.db.sql(
-		"""
-		SELECT label, fieldname, document_type
-		FROM `tabAccounting Dimension`
-		WHERE disabled = 0
-	""",
-		as_dict=1,
-	)
 
-	default_dimensions = frappe.db.sql(
-		"""SELECT p.fieldname, c.company, c.default_dimension
-		FROM `tabAccounting Dimension Detail` c, `tabAccounting Dimension` p
-		WHERE c.parent = p.name""",
-		as_dict=1,
+	c = frappe.qb.DocType("Accounting Dimension Detail")
+	p = frappe.qb.DocType("Accounting Dimension")
+	dimension_filters = (
+		frappe.qb.from_(p)
+		.select(p.label, p.fieldname, p.document_type)
+		.where(p.disabled == 0)
+		.run(as_dict=1)
+	)
+	default_dimensions = (
+		frappe.qb.from_(c)
+		.inner_join(p)
+		.on(c.parent == p.name)
+		.select(p.fieldname, c.company, c.default_dimension)
+		.run(as_dict=1)
 	)
 
 	if isinstance(with_cost_center_and_project, str):
diff --git a/erpnext/accounts/doctype/accounting_dimension/test_accounting_dimension.py b/erpnext/accounts/doctype/accounting_dimension/test_accounting_dimension.py
index 25ef2ea..cb7f5f5 100644
--- a/erpnext/accounts/doctype/accounting_dimension/test_accounting_dimension.py
+++ b/erpnext/accounts/doctype/accounting_dimension/test_accounting_dimension.py
@@ -84,12 +84,22 @@
 	frappe.set_user("Administrator")
 
 	if not frappe.db.exists("Accounting Dimension", {"document_type": "Department"}):
-		frappe.get_doc(
+		dimension = frappe.get_doc(
 			{
 				"doctype": "Accounting Dimension",
 				"document_type": "Department",
 			}
-		).insert()
+		)
+		dimension.append(
+			"dimension_defaults",
+			{
+				"company": "_Test Company",
+				"reference_document": "Department",
+				"default_dimension": "_Test Department - _TC",
+			},
+		)
+		dimension.insert()
+		dimension.save()
 	else:
 		dimension = frappe.get_doc("Accounting Dimension", "Department")
 		dimension.disabled = 0
diff --git a/erpnext/accounts/doctype/pos_closing_entry/test_pos_closing_entry.py b/erpnext/accounts/doctype/pos_closing_entry/test_pos_closing_entry.py
index 93ba90a..62b342a 100644
--- a/erpnext/accounts/doctype/pos_closing_entry/test_pos_closing_entry.py
+++ b/erpnext/accounts/doctype/pos_closing_entry/test_pos_closing_entry.py
@@ -5,6 +5,10 @@
 
 import frappe
 
+from erpnext.accounts.doctype.accounting_dimension.test_accounting_dimension import (
+	create_dimension,
+	disable_dimension,
+)
 from erpnext.accounts.doctype.pos_closing_entry.pos_closing_entry import (
 	make_closing_entry_from_opening,
 )
@@ -140,6 +144,43 @@
 		pos_inv1.load_from_db()
 		self.assertEqual(pos_inv1.status, "Paid")
 
+	def test_pos_closing_for_required_accounting_dimension_in_pos_profile(self):
+		"""
+		test case to check whether we can create POS Closing Entry without mandatory accounting dimension
+		"""
+
+		create_dimension()
+		pos_profile = make_pos_profile(do_not_insert=1, do_not_set_accounting_dimension=1)
+
+		self.assertRaises(frappe.ValidationError, pos_profile.insert)
+
+		pos_profile.location = "Block 1"
+		pos_profile.insert()
+		self.assertTrue(frappe.db.exists("POS Profile", pos_profile.name))
+
+		test_user = init_user_and_profile(do_not_create_pos_profile=1)
+
+		opening_entry = create_opening_entry(pos_profile, test_user.name)
+		pos_inv1 = create_pos_invoice(rate=350, do_not_submit=1, pos_profile=pos_profile.name)
+		pos_inv1.append("payments", {"mode_of_payment": "Cash", "account": "Cash - _TC", "amount": 3500})
+		pos_inv1.submit()
+
+		# if in between a mandatory accounting dimension is added to the POS Profile then
+		accounting_dimension_department = frappe.get_doc("Accounting Dimension", {"name": "Department"})
+		accounting_dimension_department.dimension_defaults[0].mandatory_for_bs = 1
+		accounting_dimension_department.save()
+
+		pcv_doc = make_closing_entry_from_opening(opening_entry)
+		# will assert coz the new mandatory accounting dimension bank is not set in POS Profile
+		self.assertRaises(frappe.ValidationError, pcv_doc.submit)
+
+		accounting_dimension_department = frappe.get_doc(
+			"Accounting Dimension Detail", {"parent": "Department"}
+		)
+		accounting_dimension_department.mandatory_for_bs = 0
+		accounting_dimension_department.save()
+		disable_dimension()
+
 
 def init_user_and_profile(**args):
 	user = "test@example.com"
@@ -149,6 +190,9 @@
 	test_user.add_roles(*roles)
 	frappe.set_user(user)
 
+	if args.get("do_not_create_pos_profile"):
+		return test_user
+
 	pos_profile = make_pos_profile(**args)
 	pos_profile.append("applicable_for_users", {"default": 1, "user": user})
 
diff --git a/erpnext/accounts/doctype/pos_invoice_merge_log/pos_invoice_merge_log.py b/erpnext/accounts/doctype/pos_invoice_merge_log/pos_invoice_merge_log.py
index b587ce6..d42b1e4 100644
--- a/erpnext/accounts/doctype/pos_invoice_merge_log/pos_invoice_merge_log.py
+++ b/erpnext/accounts/doctype/pos_invoice_merge_log/pos_invoice_merge_log.py
@@ -12,6 +12,8 @@
 from frappe.utils.background_jobs import enqueue, is_job_enqueued
 from frappe.utils.scheduler import is_scheduler_inactive
 
+from erpnext.accounts.doctype.pos_profile.pos_profile import required_accounting_dimensions
+
 
 class POSInvoiceMergeLog(Document):
 	def validate(self):
@@ -163,7 +165,8 @@
 				for i in items:
 					if (
 						i.item_code == item.item_code
-						and not i.serial_and_batch_bundle
+						and not i.serial_no
+						and not i.batch_no
 						and i.uom == item.uom
 						and i.net_rate == item.net_rate
 						and i.warehouse == item.warehouse
@@ -238,6 +241,22 @@
 		invoice.disable_rounded_total = cint(
 			frappe.db.get_value("POS Profile", invoice.pos_profile, "disable_rounded_total")
 		)
+		accounting_dimensions = required_accounting_dimensions()
+		dimension_values = frappe.db.get_value(
+			"POS Profile", {"name": invoice.pos_profile}, accounting_dimensions, as_dict=1
+		)
+		for dimension in accounting_dimensions:
+			dimension_value = dimension_values.get(dimension)
+
+			if not dimension_value:
+				frappe.throw(
+					_("Please set Accounting Dimension {} in {}").format(
+						frappe.bold(frappe.unscrub(dimension)),
+						frappe.get_desk_link("POS Profile", invoice.pos_profile),
+					)
+				)
+
+			invoice.set(dimension, dimension_value)
 
 		if self.merge_invoices_based_on == "Customer Group":
 			invoice.flags.ignore_pos_profile = True
@@ -424,11 +443,9 @@
 				)
 				merge_log.customer = customer
 				merge_log.pos_closing_entry = closing_entry.get("name") if closing_entry else None
-
 				merge_log.set("pos_invoices", _invoices)
 				merge_log.save(ignore_permissions=True)
 				merge_log.submit()
-
 		if closing_entry:
 			closing_entry.set_status(update=True, status="Submitted")
 			closing_entry.db_set("error_message", "")
diff --git a/erpnext/accounts/doctype/pos_profile/pos_profile.js b/erpnext/accounts/doctype/pos_profile/pos_profile.js
index 0a89aee..ceaafaa 100755
--- a/erpnext/accounts/doctype/pos_profile/pos_profile.js
+++ b/erpnext/accounts/doctype/pos_profile/pos_profile.js
@@ -1,6 +1,5 @@
 // Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and Contributors
 // License: GNU General Public License v3. See license.txt
-
 frappe.ui.form.on('POS Profile', {
 	setup: function(frm) {
 		frm.set_query("selling_price_list", function() {
@@ -140,6 +139,7 @@
 	company: function(frm) {
 		frm.trigger("toggle_display_account_head");
 		erpnext.accounts.dimensions.update_dimension(frm, frm.doctype);
+
 	},
 
 	toggle_display_account_head: function(frm) {
diff --git a/erpnext/accounts/doctype/pos_profile/pos_profile.py b/erpnext/accounts/doctype/pos_profile/pos_profile.py
index e8aee73..58be2d3 100644
--- a/erpnext/accounts/doctype/pos_profile/pos_profile.py
+++ b/erpnext/accounts/doctype/pos_profile/pos_profile.py
@@ -3,7 +3,7 @@
 
 
 import frappe
-from frappe import _, msgprint
+from frappe import _, msgprint, scrub, unscrub
 from frappe.model.document import Document
 from frappe.utils import get_link_to_form, now
 
@@ -14,6 +14,21 @@
 		self.validate_all_link_fields()
 		self.validate_duplicate_groups()
 		self.validate_payment_methods()
+		self.validate_accounting_dimensions()
+
+	def validate_accounting_dimensions(self):
+		acc_dim_names = required_accounting_dimensions()
+		for acc_dim in acc_dim_names:
+			if not self.get(acc_dim):
+				frappe.throw(
+					_(
+						"{0} is a mandatory Accounting Dimension. <br>"
+						"Please set a value for {0} in Accounting Dimensions section."
+					).format(
+						unscrub(frappe.bold(acc_dim)),
+					),
+					title=_("Mandatory Accounting Dimension"),
+				)
 
 	def validate_default_profile(self):
 		for row in self.applicable_for_users:
@@ -152,6 +167,24 @@
 	)
 
 
+def required_accounting_dimensions():
+
+	p = frappe.qb.DocType("Accounting Dimension")
+	c = frappe.qb.DocType("Accounting Dimension Detail")
+
+	acc_dim_doc = (
+		frappe.qb.from_(p)
+		.inner_join(c)
+		.on(p.name == c.parent)
+		.select(c.parent)
+		.where((c.mandatory_for_bs == 1) | (c.mandatory_for_pl == 1))
+		.where(p.disabled == 0)
+	).run(as_dict=1)
+
+	acc_dim_names = [scrub(d.parent) for d in acc_dim_doc]
+	return acc_dim_names
+
+
 @frappe.whitelist()
 @frappe.validate_and_sanitize_search_inputs
 def pos_profile_query(doctype, txt, searchfield, start, page_len, filters):
diff --git a/erpnext/accounts/doctype/pos_profile/test_pos_profile.py b/erpnext/accounts/doctype/pos_profile/test_pos_profile.py
index 788aa62..b468ad3 100644
--- a/erpnext/accounts/doctype/pos_profile/test_pos_profile.py
+++ b/erpnext/accounts/doctype/pos_profile/test_pos_profile.py
@@ -5,7 +5,10 @@
 
 import frappe
 
-from erpnext.accounts.doctype.pos_profile.pos_profile import get_child_nodes
+from erpnext.accounts.doctype.pos_profile.pos_profile import (
+	get_child_nodes,
+	required_accounting_dimensions,
+)
 from erpnext.stock.get_item_details import get_pos_profile
 
 test_dependencies = ["Item"]
@@ -118,6 +121,7 @@
 			"warehouse": args.warehouse or "_Test Warehouse - _TC",
 			"write_off_account": args.write_off_account or "_Test Write Off - _TC",
 			"write_off_cost_center": args.write_off_cost_center or "_Test Write Off Cost Center - _TC",
+			"location": "Block 1" if not args.do_not_set_accounting_dimension else None,
 		}
 	)
 
@@ -132,6 +136,7 @@
 	pos_profile.append("payments", {"mode_of_payment": "Cash", "default": 1})
 
 	if not frappe.db.exists("POS Profile", args.name or "_Test POS Profile"):
-		pos_profile.insert()
+		if not args.get("do_not_insert"):
+			pos_profile.insert()
 
 	return pos_profile