diff --git a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
index daa0166..ea6f927 100644
--- a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
@@ -2430,6 +2430,41 @@
 
 		frappe.db.set_single_value("Stock Settings", "use_serial_batch_fields", 0)
 
+	def test_pr_billed_amount_against_return_entry(self):
+		from erpnext.accounts.doctype.purchase_invoice.purchase_invoice import make_debit_note
+		from erpnext.stock.doctype.purchase_receipt.purchase_receipt import (
+			make_purchase_invoice as make_pi_from_pr,
+		)
+
+		# Create a Purchase Receipt and Fully Bill it
+		pr = make_purchase_receipt(qty=10)
+		pi = make_pi_from_pr(pr.name)
+		pi.insert()
+		pi.submit()
+
+		# Debit Note - 50% Qty & enable updating PR billed amount
+		pi_return = make_debit_note(pi.name)
+		pi_return.items[0].qty = -5
+		pi_return.update_billed_amount_in_purchase_receipt = 1
+		pi_return.submit()
+
+		# Check if the billed amount reduced
+		pr.reload()
+		self.assertEqual(pr.per_billed, 50)
+
+		pi_return.reload()
+		pi_return.cancel()
+
+		# Debit Note - 50% Qty & disable updating PR billed amount
+		pi_return = make_debit_note(pi.name)
+		pi_return.items[0].qty = -5
+		pi_return.update_billed_amount_in_purchase_receipt = 0
+		pi_return.submit()
+
+		# Check if the billed amount stayed the same
+		pr.reload()
+		self.assertEqual(pr.per_billed, 100)
+
 
 def prepare_data_for_internal_transfer():
 	from erpnext.accounts.doctype.sales_invoice.test_sales_invoice import create_internal_supplier