diff --git a/erpnext/buying/doctype/buying_settings/buying_settings.json b/erpnext/buying/doctype/buying_settings/buying_settings.json
index 21e9485..add0fd5 100644
--- a/erpnext/buying/doctype/buying_settings/buying_settings.json
+++ b/erpnext/buying/doctype/buying_settings/buying_settings.json
@@ -339,6 +339,7 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
+   "default": "Material Transferred for Subcontract", 
    "fieldname": "backflush_raw_materials_of_subcontract_based_on", 
    "fieldtype": "Select", 
    "hidden": 0, 
@@ -377,7 +378,7 @@
  "issingle": 1, 
  "istable": 0, 
  "max_attachments": 0, 
- "modified": "2018-05-30 16:28:46.899823", 
+ "modified": "2018-06-12 03:41:41.739193", 
  "modified_by": "Administrator", 
  "module": "Buying", 
  "name": "Buying Settings", 
diff --git a/erpnext/controllers/stock_controller.py b/erpnext/controllers/stock_controller.py
index 31c034d..a76a3b3 100644
--- a/erpnext/controllers/stock_controller.py
+++ b/erpnext/controllers/stock_controller.py
@@ -33,7 +33,7 @@
 				items, warehouses = self.get_items_and_warehouses()
 				update_gl_entries_after(self.posting_date, self.posting_time, warehouses, items,
 					warehouse_account)
-		elif self.doctype in ['Purchase Receipt', 'Purchase Invoice']:
+		elif self.doctype in ['Purchase Receipt', 'Purchase Invoice'] and self.docstatus == 1:
 			gl_entries = []
 			gl_entries = self.get_asset_gl_entry(gl_entries)
 			make_gl_entries(gl_entries, from_repost=from_repost)
diff --git a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
index 1abc0f4..c199271 100644
--- a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
@@ -92,6 +92,7 @@
 	def test_subcontracting(self):
 		from erpnext.stock.doctype.stock_entry.test_stock_entry import make_stock_entry
 
+		frappe.db.set_value("Buying Settings", None, "backflush_raw_materials_of_subcontract_based_on", "BOM")
 		make_stock_entry(item_code="_Test Item", target="_Test Warehouse 1 - _TC", qty=100, basic_rate=100)
 		make_stock_entry(item_code="_Test Item Home Desktop 100", target="_Test Warehouse 1 - _TC",
 			qty=100, basic_rate=100)
@@ -314,9 +315,10 @@
 
 				asset_category = doc.name
 
-			asset_item = make_item(asset_item, {'is_stock_item':0,
+			item_data = make_item(asset_item, {'is_stock_item':0,
 				'stock_uom': 'Box', 'is_fixed_asset': 1, 'has_serial_no': 1,
 				'asset_category': asset_category, 'serial_no_series': 'ABC.###'})
+			asset_item = item_data.item_code
 
 		if not frappe.db.exists('Location', 'Test Location'):
 			frappe.get_doc({
@@ -334,7 +336,6 @@
 		serial_nos = frappe.get_all('Serial No', {'asset': asset}, 'name') or []
 		self.assertEquals(len(serial_nos), 0)
 		frappe.db.sql("delete from `tabLocation")
-		frappe.db.sql("delete from `tabAsset Category`")
 		frappe.db.sql("delete from `tabAsset`")
 
 def get_gl_entries(voucher_type, voucher_no):