diff --git a/erpnext/controllers/status_updater.py b/erpnext/controllers/status_updater.py
index d58ba4b..4034306 100644
--- a/erpnext/controllers/status_updater.py
+++ b/erpnext/controllers/status_updater.py
@@ -46,8 +46,8 @@
 		["Draft", None],
 		["Submitted", "eval:self.docstatus==1"],
 		["Return", "eval:self.is_return==1 and self.docstatus==1"],
-		["Credit Note Issued", "eval:self.outstanding_amount < 0 and self.docstatus==1"],
-		["Paid", "eval:self.outstanding_amount==0 and self.docstatus==1 and self.is_return==0"],
+		["Paid", "eval:self.outstanding_amount<=0 and self.docstatus==1 and self.is_return==0"],
+		["Credit Note Issued", "eval:self.outstanding_amount < 0 and self.docstatus==1 and self.is_return==0 and get_value('Sales Invoice', {'is_return': 1, 'return_against': self.name, 'docstatus': 1})"],
 		["Unpaid", "eval:self.outstanding_amount > 0 and getdate(self.due_date) >= getdate(nowdate()) and self.docstatus==1"],
 		["Overdue", "eval:self.outstanding_amount > 0 and getdate(self.due_date) < getdate(nowdate()) and self.docstatus==1"],
 		["Cancelled", "eval:self.docstatus==2"],
@@ -56,8 +56,8 @@
 		["Draft", None],
 		["Submitted", "eval:self.docstatus==1"],
 		["Return", "eval:self.is_return==1 and self.docstatus==1"],
-		["Debit Note Issued", "eval:self.outstanding_amount < 0 and self.docstatus==1"],
-		["Paid", "eval:self.outstanding_amount==0 and self.docstatus==1 and self.is_return==0"],
+		["Paid", "eval:self.outstanding_amount<=0 and self.docstatus==1 and self.is_return==0"],
+		["Debit Note Issued", "eval:self.outstanding_amount < 0 and self.docstatus==1 and self.is_return==0 and get_value('Purchase Invoice', {'is_return': 1, 'return_against': self.name, 'docstatus': 1})"],
 		["Unpaid", "eval:self.outstanding_amount > 0 and getdate(self.due_date) >= getdate(nowdate()) and self.docstatus==1"],
 		["Overdue", "eval:self.outstanding_amount > 0 and getdate(self.due_date) < getdate(nowdate()) and self.docstatus==1"],
 		["Cancelled", "eval:self.docstatus==2"],
@@ -119,7 +119,8 @@
 					self.status = s[0]
 					break
 				elif s[1].startswith("eval:"):
-					if frappe.safe_eval(s[1][5:], None, { "self": self.as_dict(), "getdate": getdate, "nowdate": nowdate }):
+					if frappe.safe_eval(s[1][5:], None, { "self": self.as_dict(), "getdate": getdate, 
+							"nowdate": nowdate, "get_value": frappe.db.get_value }):
 						self.status = s[0]
 						break
 				elif getattr(self, s[1])():
diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index 8136793..ac91f60 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -394,4 +394,5 @@
 erpnext.patches.v8_0.disable_instructor_role
 erpnext.patches.v8_0.merge_student_batch_and_student_group
 erpnext.patches.v8_0.rename_total_margin_to_rate_with_margin # 11-05-2017
-erpnext.patches.v8_0.make_payments_table_blank_for_non_pos_invoice
\ No newline at end of file
+erpnext.patches.v8_0.fix_status_for_invoices_with_negative_outstanding
+erpnext.patches.v8_0.make_payments_table_blank_for_non_pos_invoice
diff --git a/erpnext/patches/v8_0/fix_status_for_invoices_with_negative_outstanding.py b/erpnext/patches/v8_0/fix_status_for_invoices_with_negative_outstanding.py
new file mode 100644
index 0000000..2e7f360
--- /dev/null
+++ b/erpnext/patches/v8_0/fix_status_for_invoices_with_negative_outstanding.py
@@ -0,0 +1,23 @@
+# Copyright (c) 2017, Frappe and Contributors
+# License: GNU General Public License v3. See license.txt
+
+from __future__ import unicode_literals
+import frappe
+
+def execute():
+	for dt, status in [["Sales Invoice", "Credit Note Issued"], ["Purchase Invoice", "Debit Note Issued"]]:
+		invoices = frappe.db.sql("""
+			select name 
+			from `tab{0}`
+			where 
+				status = %s
+				and outstanding_amount < 0
+				and docstatus=1
+				and is_return=0
+		""".format(dt), status)
+		
+		for inv in invoices:
+			return_inv = frappe.db.sql("""select name from `tab{0}` 
+				where is_return=1 and return_against=%s and docstatus=1""".format(dt), inv[0])
+			if not return_inv:
+				frappe.db.sql("update `tab{0}` set status='Paid' where name = %s".format(dt), inv[0])
\ No newline at end of file
diff --git a/erpnext/stock/doctype/item/item.json b/erpnext/stock/doctype/item/item.json
index d42e60d..25f3055 100644
--- a/erpnext/stock/doctype/item/item.json
+++ b/erpnext/stock/doctype/item/item.json
@@ -519,6 +519,39 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
+   "depends_on": "eval:!doc.__islocal", 
+   "description": "", 
+   "fieldname": "tolerance", 
+   "fieldtype": "Float", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_global_search": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Allow over delivery or receipt upto this percent", 
+   "length": 0, 
+   "no_copy": 0, 
+   "oldfieldname": "tolerance", 
+   "oldfieldtype": "Currency", 
+   "permlevel": 0, 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_bulk_edit": 0, 
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "image", 
    "fieldtype": "Attach Image", 
    "hidden": 1, 
@@ -807,39 +840,6 @@
    "collapsible": 0, 
    "columns": 0, 
    "depends_on": "is_stock_item", 
-   "description": "", 
-   "fieldname": "tolerance", 
-   "fieldtype": "Float", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "label": "Allow over delivery or receipt upto this percent", 
-   "length": 0, 
-   "no_copy": 0, 
-   "oldfieldname": "tolerance", 
-   "oldfieldtype": "Currency", 
-   "permlevel": 0, 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }, 
-  {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
-   "depends_on": "is_stock_item", 
    "fieldname": "valuation_method", 
    "fieldtype": "Select", 
    "hidden": 0, 
@@ -3143,7 +3143,7 @@
  "issingle": 0, 
  "istable": 0, 
  "max_attachments": 1, 
- "modified": "2017-05-03 09:55:11.624283", 
+ "modified": "2017-05-15 11:49:47.525859", 
  "modified_by": "Administrator", 
  "module": "Stock", 
  "name": "Item",