diff --git a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
index 589bc40..7ab7901 100644
--- a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
+++ b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
@@ -53,6 +53,9 @@
 		if (self.is_paid == 1):
 			self.validate_cash()
 
+		if self._action=="submit" and self.update_stock:
+			self.make_batches('warehouse')
+
 		self.check_conversion_rate()
 		self.validate_credit_to_acc()
 		self.clear_unallocated_advances("Purchase Invoice Advance", "advances")
diff --git a/erpnext/accounts/doctype/purchase_invoice/test_purchase_invoice.py b/erpnext/accounts/doctype/purchase_invoice/test_purchase_invoice.py
index 8bbd6c5..3454a2e 100644
--- a/erpnext/accounts/doctype/purchase_invoice/test_purchase_invoice.py
+++ b/erpnext/accounts/doctype/purchase_invoice/test_purchase_invoice.py
@@ -403,6 +403,27 @@
 			self.assertEquals(expected_gl_entries[gle.account][1], gle.debit)
 			self.assertEquals(expected_gl_entries[gle.account][2], gle.credit)
 
+	def test_auto_batch(self):
+		item_code = frappe.db.get_value('Item',
+			{'has_batch_no': 1, 'create_new_batch':1}, 'name')
+
+		if not item_code:
+			doc = frappe.get_doc({
+				'doctype': 'Item',
+				'is_stock_item': 1,
+				'item_code': 'test batch item',
+				'item_group': 'Products',
+				'has_batch_no': 1,
+				'create_new_batch': 1
+			}).insert(ignore_permissions=True)
+			item_code = doc.name
+
+		pi = make_purchase_invoice(update_stock=1, posting_date=frappe.utils.nowdate(),
+			posting_time=frappe.utils.nowtime(), item_code=item_code)
+
+		self.assertTrue(frappe.db.get_value('Batch',
+			{'item': item_code, 'reference_name': pi.name}))
+
 	def test_update_stock_and_purchase_return(self):
 		actual_qty_0 = get_qty_after_transaction()
 
diff --git a/erpnext/public/js/controllers/transaction.js b/erpnext/public/js/controllers/transaction.js
index c798ade..3a8ddb5 100644
--- a/erpnext/public/js/controllers/transaction.js
+++ b/erpnext/public/js/controllers/transaction.js
@@ -261,7 +261,7 @@
 		var item = frappe.get_doc(cdt, cdn);
 		var update_stock = 0, show_batch_dialog = 0;
 
-		if(['Sales Invoice', 'Purchase Invoice'].includes(this.frm.doc.doctype)) {
+		if(['Sales Invoice'].includes(this.frm.doc.doctype)) {
 			update_stock = cint(me.frm.doc.update_stock);
 			show_batch_dialog = update_stock;