diff --git a/erpnext/buying/doctype/purchase_common/purchase_common.py b/erpnext/buying/doctype/purchase_common/purchase_common.py
index 68a6e93..2cf8673 100644
--- a/erpnext/buying/doctype/purchase_common/purchase_common.py
+++ b/erpnext/buying/doctype/purchase_common/purchase_common.py
@@ -3,15 +3,13 @@
 
 from __future__ import unicode_literals
 import frappe
-
-from frappe.utils import cstr, flt
+from frappe.utils import flt
 from frappe import _
 
 from erpnext.stock.doctype.item.item import get_last_purchase_details
 from erpnext.controllers.buying_controller import BuyingController
 
 class PurchaseCommon(BuyingController):
-
 	def update_last_purchase_rate(self, obj, is_submit):
 		"""updates last_purchase_rate in item table for each item"""
 
@@ -123,27 +121,6 @@
 				else:
 					chk_dupl_itm.append(f)
 
-	def get_qty(self, curr_doctype, ref_tab_fname, ref_tab_dn, ref_doc_tname, transaction, curr_parent_name):
-		# Get total Quantities of current doctype (eg. PR) except for qty of this transaction
-		#------------------------------
-		# please check as UOM changes from Material Request - Purchase Order ,so doing following else uom should be same .
-		# i.e. in PO uom is NOS then in PR uom should be NOS
-		# but if in Material Request uom KG it can change in PO
-
-		get_qty = (transaction == 'Material Request - Purchase Order') and 'qty * conversion_factor' or 'qty'
-		qty = frappe.db.sql("""select sum(%s) from `tab%s` where %s = %s and
-			docstatus = 1 and parent != %s""" % (get_qty, curr_doctype, ref_tab_fname, '%s', '%s'),
-			(ref_tab_dn, curr_parent_name))
-		qty = qty and flt(qty[0][0]) or 0
-
-		# get total qty of ref doctype
-		#--------------------
-		max_qty = frappe.db.sql("""select qty from `tab%s` where name = %s
-			and docstatus = 1""" % (ref_doc_tname, '%s'), ref_tab_dn)
-		max_qty = max_qty and flt(max_qty[0][0]) or 0
-
-		return cstr(qty)+'~~~'+cstr(max_qty)
-
 	def check_for_stopped_status(self, doctype, docname):
 		stopped = frappe.db.sql("""select name from `tab%s` where name = %s and
 			status = 'Stopped'""" % (doctype, '%s'), docname)
diff --git a/erpnext/buying/doctype/purchase_order/purchase_order.py b/erpnext/buying/doctype/purchase_order/purchase_order.py
index 0bfd3e5..9b473c1 100644
--- a/erpnext/buying/doctype/purchase_order/purchase_order.py
+++ b/erpnext/buying/doctype/purchase_order/purchase_order.py
@@ -96,50 +96,45 @@
 				check_list.append(d.prevdoc_docname)
 				pc_obj.check_for_stopped_status( d.prevdoc_doctype, d.prevdoc_docname)
 
+	def update_requested_qty(self):
+		material_request_map = {}
+		for d in self.get("po_details"):
+			if d.prevdoc_doctype and d.prevdoc_doctype == "Material Request" and d.prevdoc_detail_docname:
+				material_request_map.setdefault(d.prevdoc_docname, []).append(d.prevdoc_detail_docname)
 
-	def update_bin(self, is_submit, is_stopped = 0):
-		from erpnext.stock.utils import update_bin
-		pc_obj = frappe.get_doc('Purchase Common')
-		for d in self.get('po_details'):
-			#1. Check if is_stock_item == 'Yes'
-			if frappe.db.get_value("Item", d.item_code, "is_stock_item") == "Yes":
-				# this happens when item is changed from non-stock to stock item
-				if not d.warehouse:
-					continue
+		for mr, mr_item_rows in material_request_map.items():
+			if mr and mr_item_rows:
+				mr_obj = frappe.get_doc("Material Request", mr)
 
-				ind_qty, po_qty = 0, flt(d.qty) * flt(d.conversion_factor)
-				if is_stopped:
-					po_qty = flt(d.qty) > flt(d.received_qty) and \
-						flt( flt(flt(d.qty) - flt(d.received_qty))*flt(d.conversion_factor)) or 0
+				if mr_obj.status in ["Stopped", "Cancelled"]:
+					frappe.throw(_("Material Request {0} is cancelled or stopped").format(mr), frappe.InvalidStatusError)
 
-				# No updates in Material Request on Stop / Unstop
-				if cstr(d.prevdoc_doctype) == 'Material Request' and not is_stopped:
-					# get qty and pending_qty of prevdoc
-					curr_ref_qty = pc_obj.get_qty(d.doctype, 'prevdoc_detail_docname',
-					 	d.prevdoc_detail_docname, 'Material Request Item',
-						'Material Request - Purchase Order', self.name)
-					max_qty, qty, curr_qty = flt(curr_ref_qty.split('~~~')[1]), \
-					 	flt(curr_ref_qty.split('~~~')[0]), 0
+				mr_obj.update_requested_qty(mr_item_rows)
 
-					if flt(qty) + flt(po_qty) > flt(max_qty):
-						curr_qty = flt(max_qty) - flt(qty)
-						# special case as there is no restriction
-						# for Material Request - Purchase Order
-						curr_qty = curr_qty > 0 and curr_qty or 0
-					else:
-						curr_qty = flt(po_qty)
+	def update_ordered_qty(self, po_item_rows=None):
+		"""update requested qty (before ordered_qty is updated)"""
+		from erpnext.stock.utils import get_bin
 
-					ind_qty = -flt(curr_qty)
+		def _update_ordered_qty(item_code, warehouse):
+			ordered_qty = frappe.db.sql("""
+				select sum((po_item.qty - ifnull(po_item.received_qty, 0))*po_item.conversion_factor)
+				from `tabPurchase Order Item` po_item, `tabPurchase Order` po
+				where po_item.item_code=%s and po_item.warehouse=%s
+				and po_item.qty > ifnull(po_item.received_qty, 0) and po_item.parent=po.name
+				and po.status!='Stopped' and po.docstatus=1""", (item_code, warehouse))
 
-				# Update ordered_qty and indented_qty in bin
-				args = {
-					"item_code": d.item_code,
-					"warehouse": d.warehouse,
-					"ordered_qty": (is_submit and 1 or -1) * flt(po_qty),
-					"indented_qty": (is_submit and 1 or -1) * flt(ind_qty),
-					"posting_date": self.transaction_date
-				}
-				update_bin(args)
+			bin_doc = get_bin(item_code, warehouse)
+			bin_doc.ordered_qty = flt(ordered_qty[0][0]) if ordered_qty else 0
+			bin_doc.save()
+
+		item_wh_list = []
+		for d in self.get("po_details"):
+			if (not po_item_rows or d.name in po_item_rows) and [d.item_code, d.warehouse] not in item_wh_list \
+					and frappe.db.get_value("Item", d.item_code, "is_stock_item") == "Yes" and d.warehouse:
+				item_wh_list.append([d.item_code, d.warehouse])
+
+		for item_code, warehouse in item_wh_list:
+			_update_ordered_qty(item_code, warehouse)
 
 	def check_modified_date(self):
 		mod_db = frappe.db.sql("select modified from `tabPurchase Order` where name = %s",
@@ -152,13 +147,11 @@
 
 	def update_status(self, status):
 		self.check_modified_date()
-		# step 1:=> Set Status
 		frappe.db.set(self,'status',cstr(status))
 
-		# step 2:=> Update Bin
-		self.update_bin(is_submit = (status == 'Submitted') and 1 or 0, is_stopped = 1)
+		self.update_requested_qty()
+		self.update_ordered_qty()
 
-		# step 3:=> Acknowledge user
 		msgprint(_("Status of {0} {1} is now {2}").format(self.doctype, self.name, status))
 
 	def on_submit(self):
@@ -167,7 +160,8 @@
 		purchase_controller = frappe.get_doc("Purchase Common")
 
 		self.update_prevdoc_status()
-		self.update_bin(is_submit = 1, is_stopped = 0)
+		self.update_requested_qty()
+		self.update_ordered_qty()
 
 		frappe.get_doc('Authorization Control').validate_approving_authority(self.doctype,
 			self.company, self.grand_total)
@@ -192,8 +186,13 @@
 			throw(_("Purchase Invoice {0} is already submitted").format(", ".join(submitted)))
 
 		frappe.db.set(self,'status','Cancelled')
+
 		self.update_prevdoc_status()
-		self.update_bin( is_submit = 0, is_stopped = 0)
+
+		# Must be called after updating ordered qty in Material Request
+		self.update_requested_qty()
+		self.update_ordered_qty()
+
 		pc_obj.update_last_purchase_rate(self, is_submit = 0)
 
 	def on_update(self):
diff --git a/erpnext/buying/doctype/purchase_order/test_purchase_order.py b/erpnext/buying/doctype/purchase_order/test_purchase_order.py
index 842409f..fc31a9a 100644
--- a/erpnext/buying/doctype/purchase_order/test_purchase_order.py
+++ b/erpnext/buying/doctype/purchase_order/test_purchase_order.py
@@ -29,8 +29,7 @@
 		frappe.get_doc(pr).insert()
 
 	def test_ordered_qty(self):
-		frappe.db.sql("delete from tabBin")
-
+		existing_ordered_qty = self._get_ordered_qty("_Test Item", "_Test Warehouse - _TC")
 		from erpnext.buying.doctype.purchase_order.purchase_order import make_purchase_receipt
 
 		po = frappe.copy_doc(test_records[0]).insert()
@@ -43,8 +42,7 @@
 		po.get("po_details")[0].item_code = "_Test Item"
 		po.submit()
 
-		self.assertEquals(frappe.db.get_value("Bin", {"item_code": "_Test Item",
-			"warehouse": "_Test Warehouse - _TC"}, "ordered_qty"), 10)
+		self.assertEquals(self._get_ordered_qty("_Test Item", "_Test Warehouse - _TC"), existing_ordered_qty + 10)
 
 		pr = make_purchase_receipt(po.name)
 
@@ -56,8 +54,9 @@
 		pr.insert()
 		pr.submit()
 
-		self.assertEquals(flt(frappe.db.get_value("Bin", {"item_code": "_Test Item",
-			"warehouse": "_Test Warehouse - _TC"}, "ordered_qty")), 6.0)
+		po.load_from_db()
+		self.assertEquals(po.get("po_details")[0].received_qty, 4)
+		self.assertEquals(self._get_ordered_qty("_Test Item", "_Test Warehouse - _TC"), existing_ordered_qty + 6)
 
 		frappe.db.set_value('Item', '_Test Item', 'tolerance', 50)
 
@@ -68,8 +67,16 @@
 		pr1.insert()
 		pr1.submit()
 
-		self.assertEquals(flt(frappe.db.get_value("Bin", {"item_code": "_Test Item",
-			"warehouse": "_Test Warehouse - _TC"}, "ordered_qty")), 0.0)
+		po.load_from_db()
+		self.assertEquals(po.get("po_details")[0].received_qty, 12)
+		self.assertEquals(self._get_ordered_qty("_Test Item", "_Test Warehouse - _TC"), existing_ordered_qty)
+
+		pr1.load_from_db()
+		pr1.cancel()
+
+		po.load_from_db()
+		self.assertEquals(po.get("po_details")[0].received_qty, 4)
+		self.assertEquals(self._get_ordered_qty("_Test Item", "_Test Warehouse - _TC"), existing_ordered_qty + 6)
 
 	def test_make_purchase_invoice(self):
 		from erpnext.buying.doctype.purchase_order.purchase_order import make_purchase_invoice
@@ -111,6 +118,9 @@
 		from erpnext.controllers.tests.test_recurring_document import test_recurring_document
 		test_recurring_document(self, test_records)
 
+	def _get_ordered_qty(self, item_code, warehouse):
+		return flt(frappe.db.get_value("Bin", {"item_code": item_code, "warehouse": warehouse}, "ordered_qty"))
+
 
 test_dependencies = ["BOM", "Item Price"]
 
diff --git a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
index 13495a0..f38ee5d 100644
--- a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
@@ -8,7 +8,6 @@
 
 from frappe import _
 import frappe.defaults
-from erpnext.stock.utils import update_bin
 
 from erpnext.controllers.buying_controller import BuyingController
 
@@ -157,29 +156,19 @@
 		self.make_sl_entries(sl_entries)
 
 	def update_ordered_qty(self):
-		stock_items = self.get_stock_items()
+		po_map = {}
 		for d in self.get("purchase_receipt_details"):
-			if d.item_code in stock_items and d.warehouse \
-					and cstr(d.prevdoc_doctype) == 'Purchase Order':
+			if d.prevdoc_doctype and d.prevdoc_doctype == "Purchase Order" and d.prevdoc_detail_docname:
+				po_map.setdefault(d.prevdoc_docname, []).append(d.prevdoc_detail_docname)
 
-				already_received_qty = self.get_already_received_qty(d.prevdoc_docname,
-					d.prevdoc_detail_docname)
-				po_qty, ordered_warehouse = self.get_po_qty_and_warehouse(d.prevdoc_detail_docname)
+		for po, po_item_rows in po_map.items():
+			if po and po_item_rows:
+				po_obj = frappe.get_doc("Purchase Order", po)
 
-				if not ordered_warehouse:
-					frappe.throw(_("Warehouse is missing in Purchase Order"))
+				if po_obj.status in ["Stopped", "Cancelled"]:
+					frappe.throw(_("Material Request {0} is cancelled or stopped").format(po), frappe.InvalidStatusError)
 
-				if already_received_qty + d.qty > po_qty:
-					ordered_qty = - (po_qty - already_received_qty) * flt(d.conversion_factor)
-				else:
-					ordered_qty = - flt(d.qty) * flt(d.conversion_factor)
-
-				update_bin({
-					"item_code": d.item_code,
-					"warehouse": ordered_warehouse,
-					"posting_date": self.posting_date,
-					"ordered_qty": flt(ordered_qty) if self.docstatus==1 else -flt(ordered_qty)
-				})
+				po_obj.update_ordered_qty(po_item_rows)
 
 	def get_already_received_qty(self, po, po_detail):
 		qty = frappe.db.sql("""select sum(qty) from `tabPurchase Receipt Item`
@@ -265,11 +254,13 @@
 
 		frappe.db.set(self,'status','Cancelled')
 
-		self.update_ordered_qty()
-
 		self.update_stock_ledger()
 
 		self.update_prevdoc_status()
+
+		# Must be called after updating received qty in PO
+		self.update_ordered_qty()
+
 		pc_obj.update_last_purchase_rate(self, 0)
 
 		self.make_gl_entries_on_cancel()