diff --git a/erpnext/stock/doctype/stock_ledger_entry/test_stock_ledger_entry.py b/erpnext/stock/doctype/stock_ledger_entry/test_stock_ledger_entry.py
index b0df45f..9e819dd 100644
--- a/erpnext/stock/doctype/stock_ledger_entry/test_stock_ledger_entry.py
+++ b/erpnext/stock/doctype/stock_ledger_entry/test_stock_ledger_entry.py
@@ -595,7 +595,7 @@
 		for details in details_list:
 			check_sle_details_against_expected(*details)
 
-	def test_mixed_valuation_batches(self):
+	def test_mixed_valuation_batches_fifo(self):
 		item_code, warehouses, batches = setup_item_valuation_test(use_batchwise_valuation=0)
 		warehouse = warehouses[0]
 
@@ -665,6 +665,34 @@
 			{"actual_qty": -10, "stock_value_difference": -10*40, "stock_queue": []},
 		]))
 
+	def test_mixed_valuation_batches_moving_average(self):
+		item_code, warehouses, batches = setup_item_valuation_test(use_batchwise_valuation=0, valuation_method="Moving Average")
+		warehouse = warehouses[0]
+
+		make_stock_entry(item_code=item_code, target=warehouse, batch_no=batches[0],
+				qty=10, rate=10)
+		make_stock_entry(item_code=item_code, target=warehouse, batch_no=batches[1],
+				qty=10, rate=20)
+		make_stock_entry(item_code=item_code, target=warehouse, batch_no=batches[0],
+				qty=5, rate=15)
+
+		new1 = make_stock_entry(item_code=item_code, target=warehouse, qty=10, rate=40)
+		batches.append(new1.items[0].batch_no)
+		new2 = make_stock_entry(item_code=item_code, target=warehouse, qty=10, rate=42)
+		batches.append(new2.items[0].batch_no)
+
+		# consume old batch as per FIFO
+		make_stock_entry(item_code=item_code, source=warehouse, qty=15, batch_no=batches[0])
+		# consume new batch as per batch
+		make_stock_entry(item_code=item_code, source=warehouse, qty=10, batch_no=batches[-1])
+		# finish all old batches
+		make_stock_entry(item_code=item_code, source=warehouse, qty=10, batch_no=batches[1])
+
+		# finish all new batches
+		consume_new1 = make_stock_entry(item_code=item_code, source=warehouse, qty=10, batch_no=batches[-2])
+		self.assertSLEs(consume_new1, ([
+			{"stock_value": 0},
+		]))
 
 
 def create_repack_entry(**args):