diff --git a/erpnext/patches/v12_0/set_total_batch_quantity.py b/erpnext/patches/v12_0/set_total_batch_quantity.py
index b02da30..d373275 100644
--- a/erpnext/patches/v12_0/set_total_batch_quantity.py
+++ b/erpnext/patches/v12_0/set_total_batch_quantity.py
@@ -5,5 +5,7 @@
 	frappe.reload_doc("stock", "doctype", "batch")
 
 	for batch in frappe.get_all("Batch", fields=["name", "batch_id"]):
-		batch_qty = frappe.db.get_value("Stock Ledger Entry", {"docstatus": 1, "batch_no": batch.batch_id}, "sum(actual_qty)") or 0.0
+		batch_qty = frappe.db.get_value("Stock Ledger Entry",
+			{"docstatus": 1, "batch_no": batch.batch_id, "is_cancelled": "No"},
+			"sum(actual_qty)") or 0.0
 		frappe.db.set_value("Batch", batch.name, "batch_qty", batch_qty, update_modified=False)
diff --git a/erpnext/stock/doctype/batch/batch.py b/erpnext/stock/doctype/batch/batch.py
index 9c53209..9b7249e 100644
--- a/erpnext/stock/doctype/batch/batch.py
+++ b/erpnext/stock/doctype/batch/batch.py
@@ -111,15 +111,11 @@
 
 	def validate(self):
 		self.item_has_batch_enabled()
-		self.calculate_batch_qty()
 
 	def item_has_batch_enabled(self):
 		if frappe.db.get_value("Item", self.item, "has_batch_no") == 0:
 			frappe.throw(_("The selected item cannot have Batch"))
 
-	def calculate_batch_qty(self):
-		self.batch_qty = frappe.db.get_value("Stock Ledger Entry", {"docstatus": 1, "batch_no": self.batch_id}, "sum(actual_qty)")
-
 	def before_save(self):
 		has_expiry_date, shelf_life_in_days = frappe.db.get_value('Item', self.item, ['has_expiry_date', 'shelf_life_in_days'])
 		if not self.expiry_date and has_expiry_date and shelf_life_in_days:
diff --git a/erpnext/stock/doctype/batch/test_batch.py b/erpnext/stock/doctype/batch/test_batch.py
index 32445a6..1fce504 100644
--- a/erpnext/stock/doctype/batch/test_batch.py
+++ b/erpnext/stock/doctype/batch/test_batch.py
@@ -7,7 +7,7 @@
 import unittest
 
 from erpnext.stock.doctype.batch.batch import get_batch_qty, UnableToSelectBatchError, get_batch_no
-from frappe.utils import cint
+from frappe.utils import cint, flt
 from erpnext.stock.doctype.purchase_receipt.test_purchase_receipt import set_perpetual_inventory
 
 class TestBatch(unittest.TestCase):
@@ -35,12 +35,13 @@
 		receipt = frappe.get_doc(dict(
 			doctype='Purchase Receipt',
 			supplier='_Test Supplier',
+			company='_Test Company',
 			items=[
 				dict(
 					item_code='ITEM-BATCH-1',
 					qty=batch_qty,
 					rate=10,
-					warehouse= 'Stores - WP'
+					warehouse= 'Stores - _TC'
 				)
 			]
 		)).insert()
@@ -175,6 +176,18 @@
 
 		self.assertEqual(get_batch_qty('batch a', '_Test Warehouse - _TC'), 90)
 
+	def test_total_batch_qty(self):
+		self.make_batch_item('ITEM-BATCH-3')
+		existing_batch_qty = flt(frappe.db.get_value("Batch", "B100", "batch_qty"))
+		stock_entry = self.make_new_batch_and_entry('ITEM-BATCH-3', 'B100', '_Test Warehouse - _TC')
+
+		current_batch_qty = flt(frappe.db.get_value("Batch", "B100", "batch_qty"))
+		self.assertEqual(current_batch_qty, existing_batch_qty + 90)
+
+		stock_entry.cancel()
+		current_batch_qty = flt(frappe.db.get_value("Batch", "B100", "batch_qty"))
+		self.assertEqual(current_batch_qty, existing_batch_qty)
+		
 	@classmethod
 	def make_new_batch_and_entry(cls, item_name, batch_name, warehouse):
 		'''Make a new stock entry for given target warehouse and batch name of item'''
@@ -208,6 +221,8 @@
 		stock_entry.insert()
 		stock_entry.submit()
 
+		return stock_entry
+
 	def test_batch_name_with_naming_series(self):
 		stock_settings = frappe.get_single('Stock Settings')
 		use_naming_series = cint(stock_settings.use_naming_series)
diff --git a/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py b/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py
index 19394ce..45ed498 100644
--- a/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py
+++ b/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py
@@ -43,12 +43,11 @@
 			from erpnext.stock.doctype.serial_no.serial_no import process_serial_no
 			process_serial_no(self)
 
-	def on_cancel(self):
-		self.calculate_batch_qty()
-
 	def calculate_batch_qty(self):
 		if self.batch_no:
-			batch_qty = frappe.db.get_value("Stock Ledger Entry", {"docstatus": 1, "batch_no": self.batch_no}, "sum(actual_qty)")
+			batch_qty = frappe.db.get_value("Stock Ledger Entry", 
+				{"docstatus": 1, "batch_no": self.batch_no, "is_cancelled": "No"},
+				"sum(actual_qty)") or 0
 			frappe.db.set_value("Batch", self.batch_no, "batch_qty", batch_qty)
 
 	#check for item quantity available in stock