diff --git a/erpnext/public/js/controllers/transaction.js b/erpnext/public/js/controllers/transaction.js
index 3023a9f..7f563dd 100644
--- a/erpnext/public/js/controllers/transaction.js
+++ b/erpnext/public/js/controllers/transaction.js
@@ -881,7 +881,8 @@
 	
 	set_gross_profit: function(item) {
 		if (this.frm.doc.doctype == "Sales Order" && item.valuation_rate) {
-			item.gross_profit = flt((((item.rate - item.valuation_rate) * item.qty) * (this.frm.doc.conversion_rate || 1)), precision("amount", item));
+			rate = flt(item.rate) * flt(this.frm.doc.conversion_rate || 1);
+			item.gross_profit = flt(((rate - item.valuation_rate) * item.qty), precision("amount", item));
 		}
 	}
 });
diff --git a/erpnext/selling/doctype/product_bundle/product_bundle.py b/erpnext/selling/doctype/product_bundle/product_bundle.py
index 363d334..c8a7167 100644
--- a/erpnext/selling/doctype/product_bundle/product_bundle.py
+++ b/erpnext/selling/doctype/product_bundle/product_bundle.py
@@ -14,6 +14,7 @@
 
 	def validate(self):
 		self.validate_main_item()
+		self.validate_child_items()
 		from erpnext.utilities.transaction_base import validate_uom_is_integer
 		validate_uom_is_integer(self, "uom", "qty")
 
@@ -21,7 +22,12 @@
 		"""Validates, main Item is not a stock item"""
 		if frappe.db.get_value("Item", self.new_item_code, "is_stock_item"):
 			frappe.throw(_("Parent Item {0} must not be a Stock Item").format(self.new_item_code))
-
+			
+	def validate_child_items(self):
+		for item in self.items:
+			if frappe.db.exists("Product Bundle", item.item_code):
+				frappe.throw(_("Child Item should not be a Product Bundle. Please remove item `{0}` and save").format(item.item_code))
+				
 def get_new_item_code(doctype, txt, searchfield, start, page_len, filters):
 	from erpnext.controllers.queries import get_match_cond
 
diff --git a/erpnext/stock/get_item_details.py b/erpnext/stock/get_item_details.py
index 7160eb4..8f35de5 100644
--- a/erpnext/stock/get_item_details.py
+++ b/erpnext/stock/get_item_details.py
@@ -45,19 +45,21 @@
 	if out.get("warehouse"):
 		out.update(get_bin_details(args.item_code, out.warehouse))
 
-	if is_item_product_bundle(args.item_code):
-		bundled_items = get_bundled_items(args.item_code)
+	if frappe.db.exists("Product Bundle", args.item_code):
 		valuation_rate = 0.0
-				
-		for item in bundled_items:
-			valuation_rate += flt(get_valuation_rate(item.item_code, out).get("valuation_rate") * item.qty)
+		bundled_items = frappe.get_doc("Product Bundle", args.item_code)
+		
+		for bundle_item in bundled_items.items:
+			valuation_rate += \
+				flt(get_valuation_rate(bundle_item.item_code, out.get("warehouse")).get("valuation_rate") \
+					* bundle_item.qty)
 
 		out.update({
 			"valuation_rate": valuation_rate
 		})
-		
+
 	else:
-		out.update(get_valuation_rate(args.item_code, out))
+		out.update(get_valuation_rate(args.item_code, out.get("warehouse")))
 
 	get_price_list_rate(args, item_doc, out)
 
@@ -483,11 +485,9 @@
 		else:
 			frappe.throw(_("No default BOM exists for Item {0}").format(item_code))
 			
-def get_valuation_rate(item_code, out):
+def get_valuation_rate(item_code, warehouse=None):
 	item = frappe.get_doc("Item", item_code)
 	if item.is_stock_item:
-		warehouse = out.get("warehouse")
-		
 		if not warehouse:
 			warehouse = item.default_warehouse
 			
@@ -503,29 +503,7 @@
 			return {"valuation_rate": valuation_rate[0][0] or 0.0}
 	else:
 		return {"valuation_rate": 0.0}
-			
-def is_item_product_bundle(item_code):
-	if frappe.db.get_value("Product Bundle", item_code):
-		return True
-	return False
-	
-def get_bundled_items(item_code, bundled_items=None):
-	if not bundled_items:
-		bundled_items = []
-	
-	doc = frappe.get_doc("Product Bundle", item_code)
-	
-	for item in doc.items:
-		if is_item_product_bundle(item.item_code):
-			get_bundled_items(item.item_code, bundled_items)
-			
-		bundled_items.append(frappe._dict({
-			"item_code": item.item_code,
-			"qty": item.qty
-		}))
 		
-	return bundled_items
-			
 def get_gross_profit(out):
 	if out.valuation_rate:
 		out.update({
@@ -533,4 +511,4 @@
 		})
 	
 	return out
-	
+	
\ No newline at end of file