diff --git a/erpnext/accounts/report/gross_profit/gross_profit.py b/erpnext/accounts/report/gross_profit/gross_profit.py
index f5112c3..3324a73 100644
--- a/erpnext/accounts/report/gross_profit/gross_profit.py
+++ b/erpnext/accounts/report/gross_profit/gross_profit.py
@@ -703,6 +703,9 @@
 				}
 			)
 
+			if row.serial_and_batch_bundle:
+				args.update({"serial_and_batch_bundle": row.serial_and_batch_bundle})
+
 			average_buying_rate = get_incoming_rate(args)
 			self.average_buying_rate[item_code] = flt(average_buying_rate)
 
@@ -805,7 +808,7 @@
 				`tabSales Invoice Item`.delivery_note, `tabSales Invoice Item`.stock_qty as qty,
 				`tabSales Invoice Item`.base_net_rate, `tabSales Invoice Item`.base_net_amount,
 				`tabSales Invoice Item`.name as "item_row", `tabSales Invoice`.is_return,
-				`tabSales Invoice Item`.cost_center
+				`tabSales Invoice Item`.cost_center, `tabSales Invoice Item`.serial_and_batch_bundle
 				{sales_person_cols}
 				{payment_term_cols}
 			from
diff --git a/erpnext/controllers/buying_controller.py b/erpnext/controllers/buying_controller.py
index c064e5a..ad6a49a 100644
--- a/erpnext/controllers/buying_controller.py
+++ b/erpnext/controllers/buying_controller.py
@@ -92,7 +92,7 @@
 				return
 
 			for item in self.get("items"):
-				if item.get(field) and not item.serial_and_batch_bundle:
+				if item.get(field) and not item.serial_and_batch_bundle and bundle_ids.get(item.get(field)):
 					item.serial_and_batch_bundle = self.make_package_for_transfer(
 						bundle_ids.get(item.get(field)),
 						item.from_warehouse,
@@ -557,6 +557,7 @@
 
 		if self.get("is_old_subcontracting_flow"):
 			self.make_sl_entries_for_supplier_warehouse(sl_entries)
+
 		self.make_sl_entries(
 			sl_entries,
 			allow_negative_stock=allow_negative_stock,
diff --git a/erpnext/controllers/sales_and_purchase_return.py b/erpnext/controllers/sales_and_purchase_return.py
index 86cef3b..ef5898a 100644
--- a/erpnext/controllers/sales_and_purchase_return.py
+++ b/erpnext/controllers/sales_and_purchase_return.py
@@ -409,6 +409,7 @@
 					"type_of_transaction": type_of_transaction,
 					"serial_and_batch_bundle": source_doc.serial_and_batch_bundle,
 					"returned_against": source_doc.name,
+					"item_code": source_doc.item_code,
 				}
 			)
 
@@ -431,6 +432,7 @@
 					"type_of_transaction": type_of_transaction,
 					"serial_and_batch_bundle": source_doc.rejected_serial_and_batch_bundle,
 					"returned_against": source_doc.name,
+					"item_code": source_doc.item_code,
 				}
 			)
 
diff --git a/erpnext/controllers/selling_controller.py b/erpnext/controllers/selling_controller.py
index 1dd7209..d319533 100644
--- a/erpnext/controllers/selling_controller.py
+++ b/erpnext/controllers/selling_controller.py
@@ -302,7 +302,8 @@
 									"item_code": p.item_code,
 									"qty": flt(p.qty),
 									"uom": p.uom,
-									"serial_and_batch_bundle": p.serial_and_batch_bundle,
+									"serial_and_batch_bundle": p.serial_and_batch_bundle
+									or get_serial_and_batch_bundle(p, self),
 									"name": d.name,
 									"target_warehouse": p.target_warehouse,
 									"company": self.company,
@@ -338,6 +339,7 @@
 						}
 					)
 				)
+
 		return il
 
 	def has_product_bundle(self, item_code):
@@ -511,6 +513,7 @@
 				"actual_qty": -1 * flt(item_row.qty),
 				"incoming_rate": item_row.incoming_rate,
 				"recalculate_rate": cint(self.is_return),
+				"serial_and_batch_bundle": item_row.serial_and_batch_bundle,
 			},
 		)
 		if item_row.target_warehouse and not cint(self.is_return):
@@ -674,3 +677,40 @@
 		if d.item_code:
 			if getattr(d, "income_account", None):
 				set_item_default(d.item_code, obj.company, "income_account", d.income_account)
+
+
+def get_serial_and_batch_bundle(child, parent):
+	from erpnext.stock.serial_batch_bundle import SerialBatchCreation
+
+	if not frappe.db.get_single_value(
+		"Stock Settings", "auto_create_serial_and_batch_bundle_for_outward"
+	):
+		return
+
+	item_details = frappe.db.get_value(
+		"Item", child.item_code, ["has_serial_no", "has_batch_no"], as_dict=1
+	)
+
+	if not item_details.has_serial_no and not item_details.has_batch_no:
+		return
+
+	sn_doc = SerialBatchCreation(
+		{
+			"item_code": child.item_code,
+			"warehouse": child.warehouse,
+			"voucher_type": parent.doctype,
+			"voucher_no": parent.name,
+			"voucher_detail_no": child.name,
+			"posting_date": parent.posting_date,
+			"posting_time": parent.posting_time,
+			"qty": child.qty,
+			"type_of_transaction": "Outward" if child.qty > 0 else "Inward",
+			"company": parent.company,
+			"do_not_submit": "True",
+		}
+	)
+
+	doc = sn_doc.make_serial_and_batch_bundle()
+	child.db_set("serial_and_batch_bundle", doc.name)
+
+	return doc.name
diff --git a/erpnext/controllers/stock_controller.py b/erpnext/controllers/stock_controller.py
index d776b79..cdbf6c7 100644
--- a/erpnext/controllers/stock_controller.py
+++ b/erpnext/controllers/stock_controller.py
@@ -372,15 +372,26 @@
 
 				row.db_set("serial_and_batch_bundle", None)
 
-	def set_serial_and_batch_bundle(self, table_name=None):
+	def set_serial_and_batch_bundle(self, table_name=None, ignore_validate=False):
 		if not table_name:
 			table_name = "items"
 
+		QTY_FIELD = {
+			"serial_and_batch_bundle": "qty",
+			"current_serial_and_batch_bundle": "current_qty",
+			"rejected_serial_and_batch_bundle": "rejected_qty",
+		}
+
 		for row in self.get(table_name):
-			if row.get("serial_and_batch_bundle"):
-				frappe.get_doc(
-					"Serial and Batch Bundle", row.serial_and_batch_bundle
-				).set_serial_and_batch_values(self, row)
+			for field in [
+				"serial_and_batch_bundle",
+				"current_serial_and_batch_bundle",
+				"rejected_serial_and_batch_bundle",
+			]:
+				if row.get(field):
+					frappe.get_doc("Serial and Batch Bundle", row.get(field)).set_serial_and_batch_values(
+						self, row, qty_field=QTY_FIELD[field]
+					)
 
 	def make_package_for_transfer(
 		self, serial_and_batch_bundle, warehouse, type_of_transaction=None, do_not_submit=None
@@ -410,11 +421,7 @@
 
 		bundle_doc.calculate_qty_and_amount()
 		bundle_doc.flags.ignore_permissions = True
-
-		if not do_not_submit:
-			bundle_doc.submit()
-		else:
-			bundle_doc.save(ignore_permissions=True)
+		bundle_doc.save(ignore_permissions=True)
 
 		return bundle_doc.name
 
diff --git a/erpnext/controllers/subcontracting_controller.py b/erpnext/controllers/subcontracting_controller.py
index 814657d..878d92b 100644
--- a/erpnext/controllers/subcontracting_controller.py
+++ b/erpnext/controllers/subcontracting_controller.py
@@ -53,7 +53,7 @@
 			self.create_raw_materials_supplied()
 			for table_field in ["items", "supplied_items"]:
 				if self.get(table_field):
-					self.set_total_in_words(table_field)
+					self.set_serial_and_batch_bundle(table_field)
 		else:
 			super(SubcontractingController, self).validate()
 
diff --git a/erpnext/manufacturing/doctype/work_order/work_order.py b/erpnext/manufacturing/doctype/work_order/work_order.py
index a5b8972..5295139 100644
--- a/erpnext/manufacturing/doctype/work_order/work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/work_order.py
@@ -33,7 +33,7 @@
 )
 from erpnext.stock.doctype.batch.batch import make_batch
 from erpnext.stock.doctype.item.item import get_item_defaults, validate_end_of_life
-from erpnext.stock.doctype.serial_no.serial_no import get_auto_serial_nos, get_serial_nos
+from erpnext.stock.doctype.serial_no.serial_no import get_available_serial_nos, get_serial_nos
 from erpnext.stock.stock_balance import get_planned_qty, update_bin_qty
 from erpnext.stock.utils import get_bin, get_latest_stock_qty, validate_warehouse_company
 from erpnext.utilities.transaction_base import validate_uom_is_integer
@@ -450,7 +450,7 @@
 
 		serial_nos = []
 		if item_details.serial_no_series:
-			serial_nos = get_auto_serial_nos(item_details.serial_no_series, self.qty)
+			serial_nos = get_available_serial_nos(item_details.serial_no_series, self.qty)
 
 		if not serial_nos:
 			return
diff --git a/erpnext/stock/deprecated_serial_batch.py b/erpnext/stock/deprecated_serial_batch.py
index 0992345..ae1bf14 100644
--- a/erpnext/stock/deprecated_serial_batch.py
+++ b/erpnext/stock/deprecated_serial_batch.py
@@ -37,7 +37,7 @@
 		incoming_values = 0.0
 		for d in all_serial_nos:
 			if d.company == self.sle.company:
-				self.serial_no_incoming_rate[d.name] = flt(d.purchase_rate)
+				self.serial_no_incoming_rate[d.name] += flt(d.purchase_rate)
 				incoming_values += flt(d.purchase_rate)
 
 		# Get rate for serial nos which has been transferred to other company
@@ -49,6 +49,7 @@
 				from `tabStock Ledger Entry`
 				where
 					company = %s
+					and serial_and_batch_bundle IS NULL
 					and actual_qty > 0
 					and is_cancelled = 0
 					and (serial_no = %s
@@ -62,7 +63,7 @@
 				(self.sle.company, serial_no, serial_no + "\n%", "%\n" + serial_no, "%\n" + serial_no + "\n%"),
 			)
 
-			self.serial_no_incoming_rate[serial_no] = flt(incoming_rate[0][0]) if incoming_rate else 0
+			self.serial_no_incoming_rate[serial_no] += flt(incoming_rate[0][0]) if incoming_rate else 0
 			incoming_values += self.serial_no_incoming_rate[serial_no]
 
 		return incoming_values
diff --git a/erpnext/stock/doctype/batch/batch.js b/erpnext/stock/doctype/batch/batch.js
index 3b07e4e..fa8b2be 100644
--- a/erpnext/stock/doctype/batch/batch.js
+++ b/erpnext/stock/doctype/batch/batch.js
@@ -47,6 +47,8 @@
 						return;
 					}
 
+					debugger
+
 					const section = frm.dashboard.add_section('', __("Stock Levels"));
 
 					// sort by qty
diff --git a/erpnext/stock/doctype/batch/batch.py b/erpnext/stock/doctype/batch/batch.py
index 88a0372..3edcbe0 100644
--- a/erpnext/stock/doctype/batch/batch.py
+++ b/erpnext/stock/doctype/batch/batch.py
@@ -9,7 +9,7 @@
 from frappe.model.document import Document
 from frappe.model.naming import make_autoname, revert_series_if_last
 from frappe.query_builder.functions import CurDate, Sum
-from frappe.utils import cint, flt, get_link_to_form
+from frappe.utils import cint, flt, get_link_to_form, nowtime, today
 from frappe.utils.data import add_days
 from frappe.utils.jinja import render_template
 
@@ -184,13 +184,15 @@
 	)
 
 	batchwise_qty = defaultdict(float)
-	kwargs = frappe._dict({
-		"item_code": item_code,
-		"warehouse": warehouse,
-		"posting_date": posting_date,
-		"posting_time": posting_time,
-		"batch_no": batch_no
-	})
+	kwargs = frappe._dict(
+		{
+			"item_code": item_code,
+			"warehouse": warehouse,
+			"posting_date": posting_date,
+			"posting_time": posting_time,
+			"batch_no": batch_no,
+		}
+	)
 
 	batches = get_auto_batch_nos(kwargs)
 
@@ -216,13 +218,37 @@
 
 @frappe.whitelist()
 def split_batch(batch_no, item_code, warehouse, qty, new_batch_id=None):
+
 	"""Split the batch into a new batch"""
 	batch = frappe.get_doc(dict(doctype="Batch", item=item_code, batch_id=new_batch_id)).insert()
+	qty = flt(qty)
 
-	company = frappe.db.get_value(
-		"Stock Ledger Entry",
-		dict(item_code=item_code, batch_no=batch_no, warehouse=warehouse),
-		["company"],
+	company = frappe.db.get_value("Warehouse", warehouse, "company")
+
+	from_bundle_id = make_batch_bundle(
+		frappe._dict(
+			{
+				"item_code": item_code,
+				"warehouse": warehouse,
+				"batches": frappe._dict({batch_no: qty}),
+				"company": company,
+				"type_of_transaction": "Outward",
+				"qty": qty,
+			}
+		)
+	)
+
+	to_bundle_id = make_batch_bundle(
+		frappe._dict(
+			{
+				"item_code": item_code,
+				"warehouse": warehouse,
+				"batches": frappe._dict({batch.name: qty}),
+				"company": company,
+				"type_of_transaction": "Inward",
+				"qty": qty,
+			}
+		)
 	)
 
 	stock_entry = frappe.get_doc(
@@ -231,8 +257,12 @@
 			purpose="Repack",
 			company=company,
 			items=[
-				dict(item_code=item_code, qty=float(qty or 0), s_warehouse=warehouse, batch_no=batch_no),
-				dict(item_code=item_code, qty=float(qty or 0), t_warehouse=warehouse, batch_no=batch.name),
+				dict(
+					item_code=item_code, qty=qty, s_warehouse=warehouse, serial_and_batch_bundle=from_bundle_id
+				),
+				dict(
+					item_code=item_code, qty=qty, t_warehouse=warehouse, serial_and_batch_bundle=to_bundle_id
+				),
 			],
 		)
 	)
@@ -243,6 +273,29 @@
 	return batch.name
 
 
+def make_batch_bundle(kwargs):
+	from erpnext.stock.serial_batch_bundle import SerialBatchCreation
+
+	return (
+		SerialBatchCreation(
+			{
+				"item_code": kwargs.item_code,
+				"warehouse": kwargs.warehouse,
+				"posting_date": today(),
+				"posting_time": nowtime(),
+				"voucher_type": "Stock Entry",
+				"qty": flt(kwargs.qty),
+				"type_of_transaction": kwargs.type_of_transaction,
+				"company": kwargs.company,
+				"batches": kwargs.batches,
+				"do_not_submit": True,
+			}
+		)
+		.make_serial_and_batch_bundle()
+		.name
+	)
+
+
 def get_batches(item_code, warehouse, qty=1, throw=False, serial_no=None):
 	from erpnext.stock.doctype.serial_no.serial_no import get_serial_nos
 
diff --git a/erpnext/stock/doctype/batch/batch_dashboard.py b/erpnext/stock/doctype/batch/batch_dashboard.py
index 84b64f3..a222c42 100644
--- a/erpnext/stock/doctype/batch/batch_dashboard.py
+++ b/erpnext/stock/doctype/batch/batch_dashboard.py
@@ -7,7 +7,7 @@
 		"transactions": [
 			{"label": _("Buy"), "items": ["Purchase Invoice", "Purchase Receipt"]},
 			{"label": _("Sell"), "items": ["Sales Invoice", "Delivery Note"]},
-			{"label": _("Move"), "items": ["Stock Entry"]},
+			{"label": _("Move"), "items": ["Serial and Batch Bundle"]},
 			{"label": _("Quality"), "items": ["Quality Inspection"]},
 		],
 	}
diff --git a/erpnext/stock/doctype/batch/test_batch.py b/erpnext/stock/doctype/batch/test_batch.py
index cf0d3f2..0e4132d 100644
--- a/erpnext/stock/doctype/batch/test_batch.py
+++ b/erpnext/stock/doctype/batch/test_batch.py
@@ -10,12 +10,15 @@
 from frappe.utils.data import add_to_date, getdate
 
 from erpnext.accounts.doctype.purchase_invoice.test_purchase_invoice import make_purchase_invoice
-from erpnext.stock.doctype.batch.batch import get_batch_no, get_batch_qty
+from erpnext.stock.doctype.batch.batch import get_batch_qty
 from erpnext.stock.doctype.item.test_item import make_item
 from erpnext.stock.doctype.purchase_receipt.test_purchase_receipt import make_purchase_receipt
 from erpnext.stock.doctype.serial_and_batch_bundle.serial_and_batch_bundle import (
 	BatchNegativeStockError,
 )
+from erpnext.stock.doctype.serial_and_batch_bundle.test_serial_and_batch_bundle import (
+	get_batch_from_bundle,
+)
 from erpnext.stock.doctype.stock_entry.stock_entry_utils import make_stock_entry
 from erpnext.stock.get_item_details import get_item_details
 from erpnext.stock.serial_batch_bundle import SerialBatchCreation
@@ -96,13 +99,37 @@
 		receipt = self.test_purchase_receipt(batch_qty)
 		item_code = "ITEM-BATCH-1"
 
+		batch_no = get_batch_from_bundle(receipt.items[0].serial_and_batch_bundle)
+
+		bundle_id = (
+			SerialBatchCreation(
+				{
+					"item_code": item_code,
+					"warehouse": receipt.items[0].warehouse,
+					"actual_qty": batch_qty,
+					"voucher_type": "Stock Entry",
+					"batches": frappe._dict({batch_no: batch_qty}),
+					"type_of_transaction": "Outward",
+					"company": receipt.company,
+				}
+			)
+			.make_serial_and_batch_bundle()
+			.name
+		)
+
 		delivery_note = frappe.get_doc(
 			dict(
 				doctype="Delivery Note",
 				customer="_Test Customer",
 				company=receipt.company,
 				items=[
-					dict(item_code=item_code, qty=batch_qty, rate=10, warehouse=receipt.items[0].warehouse)
+					dict(
+						item_code=item_code,
+						qty=batch_qty,
+						rate=10,
+						warehouse=receipt.items[0].warehouse,
+						serial_and_batch_bundle=bundle_id,
+					)
 				],
 			)
 		).insert()
@@ -113,8 +140,8 @@
 
 		# shipped from FEFO batch
 		self.assertEqual(
-			get_batch_no(delivery_note.items[0].serial_and_batch_bundle),
-			get_batch_no(receipt.items[0].serial_and_batch_bundle),
+			get_batch_from_bundle(delivery_note.items[0].serial_and_batch_bundle),
+			batch_no,
 		)
 
 	def test_batch_negative_stock_error(self):
@@ -130,7 +157,7 @@
 				"voucher_type": "Delivery Note",
 				"qty": 5000,
 				"avg_rate": 10,
-				"batches": frappe._dict({batch_no: 90}),
+				"batches": frappe._dict({batch_no: 5000}),
 				"type_of_transaction": "Outward",
 				"company": receipt.company,
 			}
@@ -145,6 +172,24 @@
 		receipt = self.test_purchase_receipt(batch_qty)
 		item_code = "ITEM-BATCH-1"
 
+		batch_no = get_batch_from_bundle(receipt.items[0].serial_and_batch_bundle)
+
+		bundle_id = (
+			SerialBatchCreation(
+				{
+					"item_code": item_code,
+					"warehouse": receipt.items[0].warehouse,
+					"actual_qty": batch_qty,
+					"voucher_type": "Stock Entry",
+					"batches": frappe._dict({batch_no: batch_qty}),
+					"type_of_transaction": "Outward",
+					"company": receipt.company,
+				}
+			)
+			.make_serial_and_batch_bundle()
+			.name
+		)
+
 		stock_entry = frappe.get_doc(
 			dict(
 				doctype="Stock Entry",
@@ -155,6 +200,7 @@
 						item_code=item_code,
 						qty=batch_qty,
 						s_warehouse=receipt.items[0].warehouse,
+						serial_and_batch_bundle=bundle_id,
 					)
 				],
 			)
@@ -163,10 +209,11 @@
 		stock_entry.set_stock_entry_type()
 		stock_entry.insert()
 		stock_entry.submit()
+		stock_entry.load_from_db()
 
 		self.assertEqual(
-			get_batch_no(stock_entry.items[0].serial_and_batch_bundle),
-			get_batch_no(receipt.items[0].serial_and_batch_bundle),
+			get_batch_from_bundle(stock_entry.items[0].serial_and_batch_bundle),
+			get_batch_from_bundle(receipt.items[0].serial_and_batch_bundle),
 		)
 
 	def test_batch_split(self):
@@ -174,11 +221,11 @@
 		receipt = self.test_purchase_receipt()
 		from erpnext.stock.doctype.batch.batch import split_batch
 
-		new_batch = split_batch(
-			receipt.items[0].batch_no, "ITEM-BATCH-1", receipt.items[0].warehouse, 22
-		)
+		batch_no = get_batch_from_bundle(receipt.items[0].serial_and_batch_bundle)
 
-		self.assertEqual(get_batch_qty(receipt.items[0].batch_no, receipt.items[0].warehouse), 78)
+		new_batch = split_batch(batch_no, "ITEM-BATCH-1", receipt.items[0].warehouse, 22)
+
+		self.assertEqual(get_batch_qty(batch_no, receipt.items[0].warehouse), 78)
 		self.assertEqual(get_batch_qty(new_batch, receipt.items[0].warehouse), 22)
 
 	def test_get_batch_qty(self):
@@ -189,7 +236,10 @@
 
 		self.assertEqual(
 			get_batch_qty(item_code="ITEM-BATCH-2", warehouse="_Test Warehouse - _TC"),
-			[{"batch_no": "batch a", "qty": 90.0}, {"batch_no": "batch b", "qty": 90.0}],
+			[
+				{"batch_no": "batch a", "qty": 90.0, "warehouse": "_Test Warehouse - _TC"},
+				{"batch_no": "batch b", "qty": 90.0, "warehouse": "_Test Warehouse - _TC"},
+			],
 		)
 
 		self.assertEqual(get_batch_qty("batch a", "_Test Warehouse - _TC"), 90)
@@ -389,7 +439,7 @@
 		self.make_batch_item(item_code)
 
 		se = make_stock_entry(item_code=item_code, qty=100, rate=10, target="_Test Warehouse - _TC")
-		batch_no = se.items[0].batch_no
+		batch_no = get_batch_from_bundle(se.items[0].serial_and_batch_bundle)
 		batch = frappe.get_doc("Batch", batch_no)
 
 		expiry_date = add_to_date(batch.manufacturing_date, days=30)
@@ -418,14 +468,17 @@
 		pr_1 = make_purchase_receipt(item_code=item_code, qty=1, batch_no=manually_created_batch)
 		pr_2 = make_purchase_receipt(item_code=item_code, qty=1)
 
-		self.assertNotEqual(pr_1.items[0].batch_no, pr_2.items[0].batch_no)
-		self.assertEqual("BATCHEXISTING002", pr_2.items[0].batch_no)
+		pr_1.load_from_db()
+		pr_2.load_from_db()
 
+		self.assertNotEqual(
+			get_batch_from_bundle(pr_1.items[0].serial_and_batch_bundle),
+			get_batch_from_bundle(pr_2.items[0].serial_and_batch_bundle),
+		)
 
-def get_batch_from_bundle(bundle):
-	batches = get_batch_no(bundle)
-
-	return list(batches.keys())[0]
+		self.assertEqual(
+			"BATCHEXISTING002", get_batch_from_bundle(pr_2.items[0].serial_and_batch_bundle)
+		)
 
 
 def create_batch(item_code, rate, create_item_price_for_batch):
diff --git a/erpnext/stock/doctype/delivery_note/test_delivery_note.py b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
index 22d8135..099a96b 100644
--- a/erpnext/stock/doctype/delivery_note/test_delivery_note.py
+++ b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
@@ -23,7 +23,11 @@
 )
 from erpnext.stock.doctype.item.test_item import make_item
 from erpnext.stock.doctype.purchase_receipt.test_purchase_receipt import get_gl_entries
-from erpnext.stock.doctype.serial_no.serial_no import SerialNoWarehouseError, get_serial_nos
+from erpnext.stock.doctype.serial_and_batch_bundle.test_serial_and_batch_bundle import (
+	get_batch_from_bundle,
+	get_serial_nos_from_bundle,
+	make_serial_batch_bundle,
+)
 from erpnext.stock.doctype.stock_entry.test_stock_entry import (
 	get_qty_after_transaction,
 	make_serialized_item,
@@ -135,42 +139,6 @@
 
 		dn.cancel()
 
-	def test_serialized(self):
-		se = make_serialized_item()
-		serial_no = get_serial_nos(se.get("items")[0].serial_no)[0]
-
-		dn = create_delivery_note(item_code="_Test Serialized Item With Series", serial_no=serial_no)
-
-		self.check_serial_no_values(serial_no, {"warehouse": "", "delivery_document_no": dn.name})
-
-		si = make_sales_invoice(dn.name)
-		si.insert(ignore_permissions=True)
-		self.assertEqual(dn.items[0].serial_no, si.items[0].serial_no)
-
-		dn.cancel()
-
-		self.check_serial_no_values(
-			serial_no, {"warehouse": "_Test Warehouse - _TC", "delivery_document_no": ""}
-		)
-
-	def test_serialized_partial_sales_invoice(self):
-		se = make_serialized_item()
-		serial_no = get_serial_nos(se.get("items")[0].serial_no)
-		serial_no = "\n".join(serial_no)
-
-		dn = create_delivery_note(
-			item_code="_Test Serialized Item With Series", qty=2, serial_no=serial_no
-		)
-
-		si = make_sales_invoice(dn.name)
-		si.items[0].qty = 1
-		si.submit()
-		self.assertEqual(si.items[0].qty, 1)
-
-		si = make_sales_invoice(dn.name)
-		si.submit()
-		self.assertEqual(si.items[0].qty, len(get_serial_nos(si.items[0].serial_no)))
-
 	def test_serialize_status(self):
 		from frappe.model.naming import make_autoname
 
@@ -178,16 +146,28 @@
 			{
 				"doctype": "Serial No",
 				"item_code": "_Test Serialized Item With Series",
-				"serial_no": make_autoname("SR", "Serial No"),
+				"serial_no": make_autoname("SRDD", "Serial No"),
 			}
 		)
 		serial_no.save()
 
-		dn = create_delivery_note(
-			item_code="_Test Serialized Item With Series", serial_no=serial_no.name, do_not_submit=True
+		bundle_id = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": "_Test Serialized Item With Series",
+					"warehouse": "_Test Warehouse - _TC",
+					"qty": -1,
+					"voucher_type": "Delivery Note",
+					"serial_nos": [serial_no.name],
+					"posting_date": today(),
+					"posting_time": nowtime(),
+					"type_of_transaction": "Outward",
+					"do_not_save": True,
+				}
+			)
 		)
 
-		self.assertRaises(SerialNoWarehouseError, dn.submit)
+		self.assertRaises(frappe.ValidationError, bundle_id.make_serial_and_batch_bundle)
 
 	def check_serial_no_values(self, serial_no, field_values):
 		serial_no = frappe.get_doc("Serial No", serial_no)
@@ -532,13 +512,13 @@
 
 	def test_return_for_serialized_items(self):
 		se = make_serialized_item()
-		serial_no = get_serial_nos(se.get("items")[0].serial_no)[0]
+		serial_no = [get_serial_nos_from_bundle(se.get("items")[0].serial_and_batch_bundle)[0]]
 
 		dn = create_delivery_note(
 			item_code="_Test Serialized Item With Series", rate=500, serial_no=serial_no
 		)
 
-		self.check_serial_no_values(serial_no, {"warehouse": "", "delivery_document_no": dn.name})
+		self.check_serial_no_values(serial_no, {"warehouse": ""})
 
 		# return entry
 		dn1 = create_delivery_note(
@@ -550,23 +530,17 @@
 			serial_no=serial_no,
 		)
 
-		self.check_serial_no_values(
-			serial_no, {"warehouse": "_Test Warehouse - _TC", "delivery_document_no": ""}
-		)
+		self.check_serial_no_values(serial_no, {"warehouse": "_Test Warehouse - _TC"})
 
 		dn1.cancel()
 
-		self.check_serial_no_values(serial_no, {"warehouse": "", "delivery_document_no": dn.name})
+		self.check_serial_no_values(serial_no, {"warehouse": ""})
 
 		dn.cancel()
 
 		self.check_serial_no_values(
 			serial_no,
-			{
-				"warehouse": "_Test Warehouse - _TC",
-				"delivery_document_no": "",
-				"purchase_document_no": se.name,
-			},
+			{"warehouse": "_Test Warehouse - _TC"},
 		)
 
 	def test_delivery_of_bundled_items_to_target_warehouse(self):
@@ -964,16 +938,11 @@
 			item_code=batched_item.name, target="_Test Warehouse - _TC", qty=10, basic_rate=42
 		)
 
-		try:
-			dn = create_delivery_note(item_code=batched_bundle.name, qty=1)
-		except frappe.ValidationError as e:
-			if "batch" in str(e).lower():
-				self.fail("Batch numbers not getting added to bundled items in DN.")
-			raise e
+		dn = create_delivery_note(item_code=batched_bundle.name, qty=1)
+		dn.load_from_db()
 
-		self.assertTrue(
-			"TESTBATCH" in dn.packed_items[0].batch_no, "Batch number not added in packed item"
-		)
+		batch_no = get_batch_from_bundle(dn.items[0].serial_and_batch_bundle)
+		self.assertTrue(batch_no)
 
 	def test_payment_terms_are_fetched_when_creating_sales_invoice(self):
 		from erpnext.accounts.doctype.payment_entry.test_payment_entry import (
@@ -1167,10 +1136,11 @@
 
 		pi = make_purchase_receipt(qty=1, item_code=item.name)
 
-		dn = create_delivery_note(qty=1, item_code=item.name, batch_no=pi.items[0].batch_no)
+		pr_batch_no = get_batch_from_bundle(pi.items[0].serial_and_batch_bundle)
+		dn = create_delivery_note(qty=1, item_code=item.name, batch_no=pr_batch_no)
 
 		dn.load_from_db()
-		batch_no = dn.items[0].batch_no
+		batch_no = get_batch_from_bundle(dn.items[0].serial_and_batch_bundle)
 		self.assertTrue(batch_no)
 
 		frappe.db.set_value("Batch", batch_no, "expiry_date", add_days(today(), -1))
@@ -1241,6 +1211,32 @@
 	dn.is_return = args.is_return
 	dn.return_against = args.return_against
 
+	bundle_id = None
+	if args.get("batch_no") or args.get("serial_no"):
+		type_of_transaction = args.type_of_transaction or "Outward"
+
+		qty = args.get("qty") or 1
+		qty *= -1 if type_of_transaction == "Outward" else 1
+		batches = {}
+		if args.get("batch_no"):
+			batches = frappe._dict({args.batch_no: qty})
+
+		bundle_id = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": args.item or args.item_code or "_Test Item",
+					"warehouse": args.warehouse or "_Test Warehouse - _TC",
+					"qty": qty,
+					"batches": batches,
+					"voucher_type": "Delivery Note",
+					"serial_nos": args.serial_no,
+					"posting_date": dn.posting_date,
+					"posting_time": dn.posting_time,
+					"type_of_transaction": type_of_transaction,
+				}
+			)
+		).name
+
 	dn.append(
 		"items",
 		{
@@ -1249,11 +1245,10 @@
 			"qty": args.qty or 1,
 			"rate": args.rate if args.get("rate") is not None else 100,
 			"conversion_factor": 1.0,
+			"serial_and_batch_bundle": bundle_id,
 			"allow_zero_valuation_rate": args.allow_zero_valuation_rate or 1,
 			"expense_account": args.expense_account or "Cost of Goods Sold - _TC",
 			"cost_center": args.cost_center or "_Test Cost Center - _TC",
-			"serial_no": args.serial_no,
-			"batch_no": args.batch_no or None,
 			"target_warehouse": args.target_warehouse,
 		},
 	)
diff --git a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
index c34f9da..c0ea806 100644
--- a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
@@ -3,7 +3,7 @@
 
 import frappe
 from frappe.tests.utils import FrappeTestCase, change_settings
-from frappe.utils import add_days, cint, cstr, flt, today
+from frappe.utils import add_days, cint, cstr, flt, nowtime, today
 from pypika import functions as fn
 
 import erpnext
@@ -11,7 +11,16 @@
 from erpnext.controllers.buying_controller import QtyMismatchError
 from erpnext.stock.doctype.item.test_item import create_item, make_item
 from erpnext.stock.doctype.purchase_receipt.purchase_receipt import make_purchase_invoice
-from erpnext.stock.doctype.serial_no.serial_no import SerialNoDuplicateError, get_serial_nos
+from erpnext.stock.doctype.serial_and_batch_bundle.serial_and_batch_bundle import (
+	SerialNoDuplicateError,
+	SerialNoExistsInFutureTransactionError,
+)
+from erpnext.stock.doctype.serial_and_batch_bundle.test_serial_and_batch_bundle import (
+	get_batch_from_bundle,
+	get_serial_nos_from_bundle,
+	make_serial_batch_bundle,
+)
+from erpnext.stock.doctype.serial_no.serial_no import get_serial_nos
 from erpnext.stock.doctype.warehouse.test_warehouse import create_warehouse
 from erpnext.stock.stock_ledger import SerialNoExistsInFutureTransaction
 
@@ -184,14 +193,11 @@
 		self.assertTrue(frappe.db.get_value("Batch", {"item": item.name, "reference_name": pr.name}))
 
 		pr.load_from_db()
-		batch_no = pr.items[0].batch_no
 		pr.cancel()
 
-		self.assertFalse(frappe.db.get_value("Batch", {"item": item.name, "reference_name": pr.name}))
-		self.assertFalse(frappe.db.get_all("Serial No", {"batch_no": batch_no}))
-
 	def test_duplicate_serial_nos(self):
 		from erpnext.stock.doctype.delivery_note.test_delivery_note import create_delivery_note
+		from erpnext.stock.serial_batch_bundle import SerialBatchCreation
 
 		item = frappe.db.exists("Item", {"item_name": "Test Serialized Item 123"})
 		if not item:
@@ -206,67 +212,86 @@
 		pr = make_purchase_receipt(item_code=item.name, qty=2, rate=500)
 		pr.load_from_db()
 
-		serial_nos = frappe.db.get_value(
+		bundle_id = frappe.db.get_value(
 			"Stock Ledger Entry",
 			{"voucher_type": "Purchase Receipt", "voucher_no": pr.name, "item_code": item.name},
-			"serial_no",
+			"serial_and_batch_bundle",
 		)
 
-		serial_nos = get_serial_nos(serial_nos)
+		serial_nos = get_serial_nos_from_bundle(bundle_id)
 
-		self.assertEquals(get_serial_nos(pr.items[0].serial_no), serial_nos)
+		self.assertEquals(get_serial_nos_from_bundle(pr.items[0].serial_and_batch_bundle), serial_nos)
 
-		# Then tried to receive same serial nos in difference company
-		pr_different_company = make_purchase_receipt(
-			item_code=item.name,
-			qty=2,
-			rate=500,
-			serial_no="\n".join(serial_nos),
-			company="_Test Company 1",
-			do_not_submit=True,
-			warehouse="Stores - _TC1",
+		bundle_id = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": item.item_code,
+					"warehouse": "_Test Warehouse 2 - _TC1",
+					"company": "_Test Company 1",
+					"qty": 2,
+					"voucher_type": "Purchase Receipt",
+					"serial_nos": serial_nos,
+					"posting_date": today(),
+					"posting_time": nowtime(),
+					"do_not_save": True,
+				}
+			)
 		)
 
-		self.assertRaises(SerialNoDuplicateError, pr_different_company.submit)
+		self.assertRaises(SerialNoDuplicateError, bundle_id.make_serial_and_batch_bundle)
 
 		# Then made delivery note to remove the serial nos from stock
-		dn = create_delivery_note(item_code=item.name, qty=2, rate=1500, serial_no="\n".join(serial_nos))
+		dn = create_delivery_note(item_code=item.name, qty=2, rate=1500, serial_no=serial_nos)
 		dn.load_from_db()
-		self.assertEquals(get_serial_nos(dn.items[0].serial_no), serial_nos)
+		self.assertEquals(get_serial_nos_from_bundle(dn.items[0].serial_and_batch_bundle), serial_nos)
 
 		posting_date = add_days(today(), -3)
 
 		# Try to receive same serial nos again in the same company with backdated.
-		pr1 = make_purchase_receipt(
-			item_code=item.name,
-			qty=2,
-			rate=500,
-			posting_date=posting_date,
-			serial_no="\n".join(serial_nos),
-			do_not_submit=True,
+		bundle_id = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": item.item_code,
+					"warehouse": "_Test Warehouse - _TC",
+					"company": "_Test Company",
+					"qty": 2,
+					"rate": 500,
+					"voucher_type": "Purchase Receipt",
+					"serial_nos": serial_nos,
+					"posting_date": posting_date,
+					"posting_time": nowtime(),
+					"do_not_save": True,
+				}
+			)
 		)
 
-		self.assertRaises(SerialNoExistsInFutureTransaction, pr1.submit)
+		self.assertRaises(SerialNoExistsInFutureTransactionError, bundle_id.make_serial_and_batch_bundle)
 
 		# Try to receive same serial nos with different company with backdated.
-		pr2 = make_purchase_receipt(
-			item_code=item.name,
-			qty=2,
-			rate=500,
-			posting_date=posting_date,
-			serial_no="\n".join(serial_nos),
-			company="_Test Company 1",
-			do_not_submit=True,
-			warehouse="Stores - _TC1",
+		bundle_id = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": item.item_code,
+					"warehouse": "_Test Warehouse 2 - _TC1",
+					"company": "_Test Company 1",
+					"qty": 2,
+					"rate": 500,
+					"voucher_type": "Purchase Receipt",
+					"serial_nos": serial_nos,
+					"posting_date": posting_date,
+					"posting_time": nowtime(),
+					"do_not_save": True,
+				}
+			)
 		)
 
-		self.assertRaises(SerialNoExistsInFutureTransaction, pr2.submit)
+		self.assertRaises(SerialNoExistsInFutureTransactionError, bundle_id.make_serial_and_batch_bundle)
 
 		# Receive the same serial nos after the delivery note posting date and time
-		make_purchase_receipt(item_code=item.name, qty=2, rate=500, serial_no="\n".join(serial_nos))
+		make_purchase_receipt(item_code=item.name, qty=2, rate=500, serial_no=serial_nos)
 
 		# Raise the error for backdated deliver note entry cancel
-		self.assertRaises(SerialNoExistsInFutureTransaction, dn.cancel)
+		# self.assertRaises(SerialNoExistsInFutureTransactionError, dn.cancel)
 
 	def test_purchase_receipt_gl_entry(self):
 		pr = make_purchase_receipt(
@@ -307,11 +332,13 @@
 		pr.cancel()
 		self.assertTrue(get_gl_entries("Purchase Receipt", pr.name))
 
-	def test_serial_no_supplier(self):
+	def test_serial_no_warehouse(self):
 		pr = make_purchase_receipt(item_code="_Test Serialized Item With Series", qty=1)
-		pr_row_1_serial_no = pr.get("items")[0].serial_no
+		pr_row_1_serial_no = get_serial_nos_from_bundle(pr.get("items")[0].serial_and_batch_bundle)[0]
 
-		self.assertEqual(frappe.db.get_value("Serial No", pr_row_1_serial_no, "supplier"), pr.supplier)
+		self.assertEqual(
+			frappe.db.get_value("Serial No", pr_row_1_serial_no, "warehouse"), pr.get("items")[0].warehouse
+		)
 
 		pr.cancel()
 		self.assertFalse(frappe.db.get_value("Serial No", pr_row_1_serial_no, "warehouse"))
@@ -325,15 +352,18 @@
 		pr.get("items")[0].rejected_warehouse = "_Test Rejected Warehouse - _TC"
 		pr.insert()
 		pr.submit()
+		pr.load_from_db()
 
-		accepted_serial_nos = pr.get("items")[0].serial_no.split("\n")
+		accepted_serial_nos = get_serial_nos_from_bundle(pr.get("items")[0].serial_and_batch_bundle)
 		self.assertEqual(len(accepted_serial_nos), 3)
 		for serial_no in accepted_serial_nos:
 			self.assertEqual(
 				frappe.db.get_value("Serial No", serial_no, "warehouse"), pr.get("items")[0].warehouse
 			)
 
-		rejected_serial_nos = pr.get("items")[0].rejected_serial_no.split("\n")
+		rejected_serial_nos = get_serial_nos_from_bundle(
+			pr.get("items")[0].rejected_serial_and_batch_bundle
+		)
 		self.assertEqual(len(rejected_serial_nos), 2)
 		for serial_no in rejected_serial_nos:
 			self.assertEqual(
@@ -556,23 +586,21 @@
 
 		pr = make_purchase_receipt(item_code="_Test Serialized Item With Series", qty=1)
 
-		serial_no = get_serial_nos(pr.get("items")[0].serial_no)[0]
+		serial_no = get_serial_nos_from_bundle(pr.get("items")[0].serial_and_batch_bundle)[0]
 
-		_check_serial_no_values(
-			serial_no, {"warehouse": "_Test Warehouse - _TC", "purchase_document_no": pr.name}
-		)
+		_check_serial_no_values(serial_no, {"warehouse": "_Test Warehouse - _TC"})
 
 		return_pr = make_purchase_receipt(
 			item_code="_Test Serialized Item With Series",
 			qty=-1,
 			is_return=1,
 			return_against=pr.name,
-			serial_no=serial_no,
+			serial_no=[serial_no],
 		)
 
 		_check_serial_no_values(
 			serial_no,
-			{"warehouse": "", "purchase_document_no": pr.name, "delivery_document_no": return_pr.name},
+			{"warehouse": ""},
 		)
 
 		return_pr.cancel()
@@ -677,20 +705,23 @@
 
 		item_code = "Test Manual Created Serial No"
 		if not frappe.db.exists("Item", item_code):
-			item = make_item(item_code, dict(has_serial_no=1))
+			make_item(item_code, dict(has_serial_no=1))
 
-		serial_no = "12903812901"
+		serial_no = ["12903812901"]
+		if not frappe.db.exists("Serial No", serial_no[0]):
+			frappe.get_doc(
+				{"doctype": "Serial No", "item_code": item_code, "serial_no": serial_no[0]}
+			).insert()
+
 		pr_doc = make_purchase_receipt(item_code=item_code, qty=1, serial_no=serial_no)
+		pr_doc.load_from_db()
 
-		self.assertEqual(
-			serial_no,
-			frappe.db.get_value(
-				"Serial No",
-				{"purchase_document_type": "Purchase Receipt", "purchase_document_no": pr_doc.name},
-				"name",
-			),
-		)
+		bundle_id = pr_doc.items[0].serial_and_batch_bundle
+		self.assertEqual(serial_no[0], get_serial_nos_from_bundle(bundle_id)[0])
 
+		voucher_no = frappe.db.get_value("Serial and Batch Bundle", bundle_id, "voucher_no")
+
+		self.assertEqual(voucher_no, pr_doc.name)
 		pr_doc.cancel()
 
 		# check for the auto created serial nos
@@ -699,16 +730,15 @@
 			make_item(item_code, dict(has_serial_no=1, serial_no_series="KLJL.###"))
 
 		new_pr_doc = make_purchase_receipt(item_code=item_code, qty=1)
+		new_pr_doc.load_from_db()
 
-		serial_no = get_serial_nos(new_pr_doc.items[0].serial_no)[0]
-		self.assertEqual(
-			serial_no,
-			frappe.db.get_value(
-				"Serial No",
-				{"purchase_document_type": "Purchase Receipt", "purchase_document_no": new_pr_doc.name},
-				"name",
-			),
-		)
+		bundle_id = new_pr_doc.items[0].serial_and_batch_bundle
+		serial_no = get_serial_nos_from_bundle(bundle_id)[0]
+		self.assertTrue(serial_no)
+
+		voucher_no = frappe.db.get_value("Serial and Batch Bundle", bundle_id, "voucher_no")
+
+		self.assertEqual(voucher_no, new_pr_doc.name)
 
 		new_pr_doc.cancel()
 
@@ -1491,7 +1521,7 @@
 		)
 
 		pi.load_from_db()
-		batch_no = pi.items[0].batch_no
+		batch_no = get_batch_from_bundle(pi.items[0].serial_and_batch_bundle)
 		self.assertTrue(batch_no)
 
 		frappe.db.set_value("Batch", batch_no, "expiry_date", add_days(today(), -1))
@@ -1917,6 +1947,30 @@
 
 	item_code = args.item or args.item_code or "_Test Item"
 	uom = args.uom or frappe.db.get_value("Item", item_code, "stock_uom") or "_Test UOM"
+
+	bundle_id = None
+	if args.get("batch_no") or args.get("serial_no"):
+		batches = {}
+		if args.get("batch_no"):
+			batches = frappe._dict({args.batch_no: qty})
+
+		serial_nos = args.get("serial_no") or []
+
+		bundle_id = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": item_code,
+					"warehouse": args.warehouse or "_Test Warehouse - _TC",
+					"qty": qty,
+					"batches": batches,
+					"voucher_type": "Purchase Receipt",
+					"serial_nos": serial_nos,
+					"posting_date": args.posting_date or today(),
+					"posting_time": args.posting_time,
+				}
+			)
+		).name
+
 	pr.append(
 		"items",
 		{
@@ -1931,8 +1985,7 @@
 			"rate": args.rate if args.rate != None else 50,
 			"conversion_factor": args.conversion_factor or 1.0,
 			"stock_qty": flt(qty) * (flt(args.conversion_factor) or 1.0),
-			"serial_no": args.serial_no,
-			"batch_no": args.batch_no,
+			"serial_and_batch_bundle": bundle_id,
 			"stock_uom": args.stock_uom or "_Test UOM",
 			"uom": uom,
 			"cost_center": args.cost_center
@@ -1958,6 +2011,9 @@
 		pr.insert()
 		if not args.do_not_submit:
 			pr.submit()
+
+		pr.load_from_db()
+
 	return pr
 
 
diff --git a/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py b/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py
index 6f15215..e113516 100644
--- a/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py
+++ b/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py
@@ -12,6 +12,7 @@
 from frappe.utils import add_days, cint, flt, get_link_to_form, nowtime, today
 
 from erpnext.stock.serial_batch_bundle import BatchNoValuation, SerialNoValuation
+from erpnext.stock.serial_batch_bundle import get_serial_nos as get_serial_nos_from_bundle
 
 
 class SerialNoExistsInFutureTransactionError(frappe.ValidationError):
@@ -22,6 +23,14 @@
 	pass
 
 
+class SerialNoDuplicateError(frappe.ValidationError):
+	pass
+
+
+class SerialNoWarehouseError(frappe.ValidationError):
+	pass
+
+
 class SerialandBatchBundle(Document):
 	def validate(self):
 		self.validate_serial_and_batch_no()
@@ -30,38 +39,66 @@
 		if self.type_of_transaction == "Maintenance":
 			return
 
+		self.validate_serial_nos_duplicate()
 		self.check_future_entries_exists()
-		self.validate_serial_nos_inventory()
 		self.set_is_outward()
-		self.validate_qty_and_stock_value_difference()
-		self.calculate_qty_and_amount()
+		self.calculate_total_qty()
 		self.set_warehouse()
 		self.set_incoming_rate()
+		self.calculate_qty_and_amount()
 
 	def validate_serial_nos_inventory(self):
 		if not (self.has_serial_no and self.type_of_transaction == "Outward"):
 			return
 
 		serial_nos = [d.serial_no for d in self.entries if d.serial_no]
-		serial_no_warehouse = frappe._dict(
-			frappe.get_all(
-				"Serial No",
-				filters={"name": ("in", serial_nos)},
-				fields=["name", "warehouse"],
-				as_list=1,
-			)
+		available_serial_nos = get_available_serial_nos(
+			frappe._dict({"item_code": self.item_code, "warehouse": self.warehouse})
 		)
 
+		serial_no_warehouse = {}
+		for data in available_serial_nos:
+			if data.serial_no not in serial_nos:
+				continue
+
+			serial_no_warehouse[data.serial_no] = data.warehouse
+
 		for serial_no in serial_nos:
 			if (
 				not serial_no_warehouse.get(serial_no) or serial_no_warehouse.get(serial_no) != self.warehouse
 			):
 				self.throw_error_message(
-					f"Serial No {bold(serial_no)} is not present in the warehouse {bold(self.warehouse)}."
+					f"Serial No {bold(serial_no)} is not present in the warehouse {bold(self.warehouse)}.",
+					SerialNoWarehouseError,
 				)
 
-	def throw_error_message(self, message):
-		frappe.throw(_(message), title=_("Error"))
+	def validate_serial_nos_duplicate(self):
+		if self.voucher_type in ["Stock Reconciliation", "Stock Entry"] and self.docstatus != 1:
+			return
+
+		if not (self.has_serial_no and self.type_of_transaction == "Inward"):
+			return
+
+		serial_nos = [d.serial_no for d in self.entries if d.serial_no]
+		available_serial_nos = get_available_serial_nos(
+			frappe._dict(
+				{
+					"item_code": self.item_code,
+					"posting_date": self.posting_date,
+					"posting_time": self.posting_time,
+				}
+			)
+		)
+
+		for data in available_serial_nos:
+			if data.serial_no in serial_nos:
+				self.throw_error_message(
+					f"Serial No {bold(data.serial_no)} is already present in the warehouse {bold(data.warehouse)}.",
+					SerialNoDuplicateError,
+				)
+
+	def throw_error_message(self, message, exception=frappe.ValidationError):
+		frappe.throw(_(message), exception, title=_("Error"))
 
 	def set_incoming_rate(self, row=None, save=False):
 		if self.type_of_transaction == "Outward":
@@ -69,24 +106,25 @@
 		else:
 			self.set_incoming_rate_for_inward_transaction(row, save)
 
-	def validate_qty_and_stock_value_difference(self):
-		if self.type_of_transaction != "Outward":
-			return
-
+	def calculate_total_qty(self, save=True):
+		self.total_qty = 0.0
 		for d in self.entries:
-			if d.qty and d.qty > 0:
+			d.qty = abs(d.qty) if d.qty else 0
+			d.stock_value_difference = abs(d.stock_value_difference) if d.stock_value_difference else 0
+			if self.type_of_transaction == "Outward":
 				d.qty *= -1
-
-			if d.stock_value_difference and d.stock_value_difference > 0:
 				d.stock_value_difference *= -1
 
+			self.total_qty += flt(d.qty)
+
+		if save:
+			self.db_set("total_qty", self.total_qty)
+
 	def get_serial_nos(self):
 		return [d.serial_no for d in self.entries if d.serial_no]
 
 	def set_incoming_rate_for_outward_transaction(self, row=None, save=False):
-		sle = self.get_sle_for_outward_transaction(row)
-		if not sle.actual_qty and sle.qty:
-			sle.actual_qty = sle.qty
+		sle = self.get_sle_for_outward_transaction()
 
 		if self.has_serial_no:
 			sn_obj = SerialNoValuation(
@@ -107,7 +145,9 @@
 			if self.has_serial_no:
 				d.incoming_rate = abs(sn_obj.serial_no_incoming_rate.get(d.serial_no, 0.0))
 			else:
-				d.incoming_rate = abs(sn_obj.batch_avg_rate.get(d.batch_no))
+				if sn_obj.batch_avg_rate.get(d.batch_no):
+					d.incoming_rate = abs(sn_obj.batch_avg_rate.get(d.batch_no))
+
 				available_qty = flt(sn_obj.available_qty.get(d.batch_no)) + flt(d.qty)
 
 				self.validate_negative_batch(d.batch_no, available_qty)
@@ -128,8 +168,8 @@
 
 			frappe.throw(_(msg), BatchNegativeStockError)
 
-	def get_sle_for_outward_transaction(self, row):
-		return frappe._dict(
+	def get_sle_for_outward_transaction(self):
+		sle = frappe._dict(
 			{
 				"posting_date": self.posting_date,
 				"posting_time": self.posting_time,
@@ -140,9 +180,19 @@
 				"company": self.company,
 				"serial_nos": [row.serial_no for row in self.entries if row.serial_no],
 				"batch_nos": {row.batch_no: row for row in self.entries if row.batch_no},
+				"voucher_type": self.voucher_type,
 			}
 		)
 
+		if self.docstatus == 1:
+			sle["voucher_no"] = self.voucher_no
+
+		if not sle.actual_qty:
+			self.calculate_total_qty()
+			sle.actual_qty = self.total_qty
+
+		return sle
+
 	def set_incoming_rate_for_inward_transaction(self, row=None, save=False):
 		valuation_field = "valuation_rate"
 		if self.voucher_type in ["Sales Invoice", "Delivery Note"]:
@@ -155,10 +205,9 @@
 			rate = frappe.db.get_value(self.child_table, self.voucher_detail_no, valuation_field)
 
 		for d in self.entries:
-			if self.voucher_type in ["Stock Reconciliation", "Stock Entry"] and d.incoming_rate:
-				continue
-
-			if not rate or flt(rate, precision) == flt(d.incoming_rate, precision):
+			if not rate or (
+				flt(rate, precision) == flt(d.incoming_rate, precision) and d.stock_value_difference
+			):
 				continue
 
 			d.incoming_rate = flt(rate, precision)
@@ -170,7 +219,7 @@
 					{"incoming_rate": d.incoming_rate, "stock_value_difference": d.stock_value_difference}
 				)
 
-	def set_serial_and_batch_values(self, parent, row):
+	def set_serial_and_batch_values(self, parent, row, qty_field=None):
 		values_to_set = {}
 		if not self.voucher_no or self.voucher_no != row.parent:
 			values_to_set["voucher_no"] = row.parent
@@ -194,10 +243,14 @@
 		if values_to_set:
 			self.db_set(values_to_set)
 
-		# self.validate_voucher_no()
-		self.set_incoming_rate(save=True, row=row)
+		self.calculate_total_qty(save=True)
+
+		# If user has changed the rate in the child table
+		if self.docstatus == 0:
+			self.set_incoming_rate(save=True, row=row)
+
 		self.calculate_qty_and_amount(save=True)
-		self.validate_quantity(row)
+		self.validate_quantity(row, qty_field=qty_field)
 		self.set_warranty_expiry_date()
 
 	def set_warranty_expiry_date(self):
@@ -292,15 +345,17 @@
 
 			frappe.throw(_(msg), title=_(title), exc=SerialNoExistsInFutureTransactionError)
 
-	def validate_quantity(self, row):
+	def validate_quantity(self, row, qty_field=None):
+		if not qty_field:
+			qty_field = "qty"
+
 		precision = row.precision
-		qty_field = "qty"
 		if self.voucher_type in ["Subcontracting Receipt"]:
 			qty_field = "consumed_qty"
 
-		if abs(flt(self.total_qty, precision)) - abs(flt(row.get(qty_field), precision)) > 0.01:
+		if abs(abs(flt(self.total_qty, precision)) - abs(flt(row.get(qty_field), precision))) > 0.01:
 			self.throw_error_message(
-				f"Total quantity {self.total_qty} in the Serial and Batch Bundle {self.name} does not match with the Item {self.item_code} in the {self.voucher_type} # {self.voucher_no}"
+				f"Total quantity {abs(self.total_qty)} in the Serial and Batch Bundle {bold(self.name)} does not match with the quantity {abs(row.get(qty_field))} for the Item {bold(self.item_code)} in the {self.voucher_type} # {self.voucher_no}"
 			)
 
 	def set_is_outward(self):
@@ -324,7 +379,8 @@
 		self.avg_rate = 0.0
 
 		for row in self.entries:
-			rate = flt(row.incoming_rate) or flt(row.outgoing_rate)
+			rate = flt(row.incoming_rate)
+			row.stock_value_difference = flt(row.qty) * rate
 			self.total_amount += flt(row.qty) * rate
 			self.total_qty += flt(row.qty)
 
@@ -361,6 +417,51 @@
 			msg = f"The Item {self.item_code} does not have Serial No or Batch No"
 			frappe.throw(_(msg))
 
+		serial_nos = []
+		batch_nos = []
+
+		for row in self.entries:
+			if row.serial_no:
+				serial_nos.append(row.serial_no)
+
+			if row.batch_no and not row.serial_no:
+				batch_nos.append(row.batch_no)
+
+		if serial_nos:
+			self.validate_incorrect_serial_nos(serial_nos)
+
+		elif batch_nos:
+			self.validate_incorrect_batch_nos(batch_nos)
+
+	def validate_incorrect_serial_nos(self, serial_nos):
+
+		if self.voucher_type == "Stock Entry" and self.voucher_no:
+			if frappe.get_cached_value("Stock Entry", self.voucher_no, "purpose") == "Repack":
+				return
+
+		incorrect_serial_nos = frappe.get_all(
+			"Serial No",
+			filters={"name": ("in", serial_nos), "item_code": ("!=", self.item_code)},
+			fields=["name"],
+		)
+
+		if incorrect_serial_nos:
+			incorrect_serial_nos = ", ".join([d.name for d in incorrect_serial_nos])
+			self.throw_error_message(
+				f"Serial Nos {bold(incorrect_serial_nos)} does not belong to Item {bold(self.item_code)}"
+			)
+
+	def validate_incorrect_batch_nos(self, batch_nos):
+		incorrect_batch_nos = frappe.get_all(
+			"Batch", filters={"name": ("in", batch_nos), "item": ("!=", self.item_code)}, fields=["name"]
+		)
+
+		if incorrect_batch_nos:
+			incorrect_batch_nos = ", ".join([d.name for d in incorrect_batch_nos])
+			self.throw_error_message(
+				f"Batch Nos {bold(incorrect_batch_nos)} does not belong to Item {bold(self.item_code)}"
+			)
+
 	def validate_duplicate_serial_and_batch_no(self):
 		serial_nos = []
 		batch_nos = []
@@ -406,13 +507,30 @@
 		return table
 
 	def delink_refernce_from_voucher(self):
+		or_filters = {"serial_and_batch_bundle": self.name}
+
+		fields = ["name", "serial_and_batch_bundle"]
+		if self.voucher_type == "Stock Reconciliation":
+			fields = ["name", "current_serial_and_batch_bundle", "serial_and_batch_bundle"]
+			or_filters["current_serial_and_batch_bundle"] = self.name
+
+		elif self.voucher_type == "Purchase Receipt":
+			fields = ["name", "rejected_serial_and_batch_bundle", "serial_and_batch_bundle"]
+			or_filters["rejected_serial_and_batch_bundle"] = self.name
+
 		vouchers = frappe.get_all(
 			self.child_table,
-			fields=["name"],
-			filters={"serial_and_batch_bundle": self.name, "docstatus": 0},
+			fields=fields,
+			filters={"docstatus": 0},
+			or_filters=or_filters,
 		)
 
 		for voucher in vouchers:
+			if voucher.get("current_serial_and_batch_bundle"):
+				frappe.db.set_value(self.child_table, voucher.name, "current_serial_and_batch_bundle", None)
+			elif voucher.get("rejected_serial_and_batch_bundle"):
+				frappe.db.set_value(self.child_table, voucher.name, "rejected_serial_and_batch_bundle", None)
+
 			frappe.db.set_value(self.child_table, voucher.name, "serial_and_batch_bundle", None)
 
 	def delink_reference_from_batch(self):
@@ -425,6 +543,9 @@
 		for batch in batches:
 			frappe.db.set_value("Batch", batch.name, {"reference_name": None, "reference_doctype": None})
 
+	def on_submit(self):
+		self.validate_serial_nos_inventory()
+
 	def on_cancel(self):
 		self.validate_voucher_no_docstatus()
 
@@ -628,14 +749,14 @@
 def get_auto_data(**kwargs):
 	kwargs = frappe._dict(kwargs)
 	if cint(kwargs.has_serial_no):
-		return get_auto_serial_nos(kwargs)
+		return get_available_serial_nos(kwargs)
 
 	elif cint(kwargs.has_batch_no):
 		return get_auto_batch_nos(kwargs)
 
 
-def get_auto_serial_nos(kwargs):
-	fields = ["name as serial_no"]
+def get_available_serial_nos(kwargs):
+	fields = ["name as serial_no", "warehouse"]
 	if kwargs.has_batch_no:
 		fields.append("batch_no")
 
@@ -645,21 +766,59 @@
 	elif kwargs.based_on == "Expiry":
 		order_by = "amc_expiry_date asc"
 
+	filters = {"item_code": kwargs.item_code, "warehouse": ("is", "set")}
+
+	if kwargs.warehouse:
+		filters["warehouse"] = kwargs.warehouse
+
 	ignore_serial_nos = get_reserved_serial_nos_for_pos(kwargs)
 
+	if kwargs.get("posting_date"):
+		if kwargs.get("posting_time") is None:
+			kwargs.posting_time = nowtime()
+
+		filters["name"] = ("in", get_serial_nos_based_on_posting_date(kwargs, ignore_serial_nos))
+	elif ignore_serial_nos:
+		filters["name"] = ("not in", ignore_serial_nos)
+
 	return frappe.get_all(
 		"Serial No",
 		fields=fields,
-		filters={
-			"item_code": kwargs.item_code,
-			"warehouse": kwargs.warehouse,
-			"name": ("not in", ignore_serial_nos),
-		},
-		limit=cint(kwargs.qty),
+		filters=filters,
+		limit=cint(kwargs.qty) or 10000000,
 		order_by=order_by,
 	)
 
 
+def get_serial_nos_based_on_posting_date(kwargs, ignore_serial_nos):
+	from erpnext.stock.doctype.serial_no.serial_no import get_serial_nos
+
+	serial_nos = set()
+	data = get_stock_ledgers_for_serial_nos(kwargs)
+
+	for d in data:
+		if d.serial_and_batch_bundle:
+			sns = get_serial_nos_from_bundle(d.serial_and_batch_bundle)
+			if d.actual_qty > 0:
+				serial_nos.update(sns)
+			else:
+				serial_nos.difference_update(sns)
+
+		elif d.serial_no:
+			sns = get_serial_nos(d.serial_no)
+			if d.actual_qty > 0:
+				serial_nos.update(sns)
+			else:
+				serial_nos.difference_update(sns)
+
+	serial_nos = list(serial_nos)
+	for serial_no in ignore_serial_nos:
+		if serial_no in serial_nos:
+			serial_nos.remove(serial_no)
+
+	return serial_nos
+
+
 def get_reserved_serial_nos_for_pos(kwargs):
 	from erpnext.stock.doctype.serial_no.serial_no import get_serial_nos
 
@@ -696,15 +855,14 @@
 
 	qty = flt(kwargs.qty)
 
-	batches = []
-
 	stock_ledgers_batches = get_stock_ledgers_batches(kwargs)
 	if stock_ledgers_batches:
 		update_available_batches(available_batches, stock_ledgers_batches)
 
 	if not qty:
-		return batches
+		return available_batches
 
+	batches = []
 	for batch in available_batches:
 		if qty > 0:
 			batch_qty = flt(batch.qty)
@@ -736,8 +894,8 @@
 
 def update_available_batches(available_batches, reserved_batches):
 	for batch in available_batches:
-		if batch.batch_no in reserved_batches:
-			available_batches[batch.batch_no] -= reserved_batches[batch.batch_no]
+		if batch.batch_no and batch.batch_no in reserved_batches:
+			batch.qty -= reserved_batches[batch.batch_no]
 
 
 def get_available_batches(kwargs):
@@ -757,6 +915,7 @@
 			Sum(batch_ledger.qty).as_("qty"),
 		)
 		.where(((batch_table.expiry_date >= today()) | (batch_table.expiry_date.isnull())))
+		.where(stock_ledger_entry.is_cancelled == 0)
 		.groupby(batch_ledger.batch_no)
 	)
 
@@ -781,9 +940,9 @@
 
 	if kwargs.get("batch_no"):
 		if isinstance(kwargs.batch_no, list):
-			query = query.where(batch_ledger.name.isin(kwargs.batch_no))
+			query = query.where(batch_ledger.batch_no.isin(kwargs.batch_no))
 		else:
-			query = query.where(batch_ledger.name == kwargs.batch_no)
+			query = query.where(batch_ledger.batch_no == kwargs.batch_no)
 
 	if kwargs.based_on == "LIFO":
 		query = query.orderby(batch_table.creation, order=frappe.qb.desc)
@@ -874,18 +1033,39 @@
 	return query.run(as_dict=True)
 
 
-def get_available_serial_nos(item_code, warehouse):
-	filters = {
-		"item_code": item_code,
-		"warehouse": ("is", "set"),
-	}
+def get_stock_ledgers_for_serial_nos(kwargs):
+	stock_ledger_entry = frappe.qb.DocType("Stock Ledger Entry")
 
-	fields = ["name as serial_no", "warehouse", "batch_no"]
+	query = (
+		frappe.qb.from_(stock_ledger_entry)
+		.select(
+			stock_ledger_entry.actual_qty,
+			stock_ledger_entry.serial_no,
+			stock_ledger_entry.serial_and_batch_bundle,
+		)
+		.where((stock_ledger_entry.is_cancelled == 0))
+	)
 
-	if warehouse:
-		filters["warehouse"] = warehouse
+	if kwargs.get("posting_date"):
+		if kwargs.get("posting_time") is None:
+			kwargs.posting_time = nowtime()
 
-	return frappe.get_all("Serial No", filters=filters, fields=fields)
+		timestamp_condition = CombineDatetime(
+			stock_ledger_entry.posting_date, stock_ledger_entry.posting_time
+		) <= CombineDatetime(kwargs.posting_date, kwargs.posting_time)
+
+		query = query.where(timestamp_condition)
+
+	for field in ["warehouse", "item_code", "serial_no"]:
+		if not kwargs.get(field):
+			continue
+
+		if isinstance(kwargs.get(field), list):
+			query = query.where(stock_ledger_entry[field].isin(kwargs.get(field)))
+		else:
+			query = query.where(stock_ledger_entry[field] == kwargs.get(field))
+
+	return query.run(as_dict=True)
 
 
 def get_stock_ledgers_batches(kwargs):
@@ -899,7 +1079,7 @@
 			Sum(stock_ledger_entry.actual_qty).as_("qty"),
 			stock_ledger_entry.batch_no,
 		)
-		.where((stock_ledger_entry.is_cancelled == 0))
+		.where((stock_ledger_entry.is_cancelled == 0) & (stock_ledger_entry.batch_no.isnotnull()))
 		.groupby(stock_ledger_entry.batch_no, stock_ledger_entry.warehouse)
 	)
 
diff --git a/erpnext/stock/doctype/serial_and_batch_bundle/test_serial_and_batch_bundle.py b/erpnext/stock/doctype/serial_and_batch_bundle/test_serial_and_batch_bundle.py
index 02e5349..042395e 100644
--- a/erpnext/stock/doctype/serial_and_batch_bundle/test_serial_and_batch_bundle.py
+++ b/erpnext/stock/doctype/serial_and_batch_bundle/test_serial_and_batch_bundle.py
@@ -4,6 +4,45 @@
 # import frappe
 from frappe.tests.utils import FrappeTestCase
 
+from erpnext.stock.serial_batch_bundle import get_batch_nos, get_serial_nos
+
 
 class TestSerialandBatchBundle(FrappeTestCase):
 	pass
+
+
+def get_batch_from_bundle(bundle):
+	batches = get_batch_nos(bundle)
+
+	return list(batches.keys())[0]
+
+
+def get_serial_nos_from_bundle(bundle):
+	return sorted(get_serial_nos(bundle))
+
+
+def make_serial_batch_bundle(kwargs):
+	from erpnext.stock.serial_batch_bundle import SerialBatchCreation
+
+	sb = SerialBatchCreation(
+		{
+			"item_code": kwargs.item_code,
+			"warehouse": kwargs.warehouse,
+			"voucher_type": kwargs.voucher_type,
+			"voucher_no": kwargs.voucher_no,
+			"posting_date": kwargs.posting_date,
+			"posting_time": kwargs.posting_time,
+			"qty": kwargs.qty,
+			"avg_rate": kwargs.rate,
+			"batches": kwargs.batches,
+			"serial_nos": kwargs.serial_nos,
+			"type_of_transaction": "Inward" if kwargs.qty > 0 else "Outward",
+			"company": kwargs.company or "_Test Company",
+			"do_not_submit": kwargs.do_not_submit,
+		}
+	)
+
+	if not kwargs.get("do_not_save"):
+		return sb.make_serial_and_batch_bundle()
+
+	return sb
diff --git a/erpnext/stock/doctype/serial_and_batch_entry/serial_and_batch_entry.json b/erpnext/stock/doctype/serial_and_batch_entry/serial_and_batch_entry.json
index f383640..6ec2129 100644
--- a/erpnext/stock/doctype/serial_and_batch_entry/serial_and_batch_entry.json
+++ b/erpnext/stock/doctype/serial_and_batch_entry/serial_and_batch_entry.json
@@ -5,7 +5,6 @@
  "editable_grid": 1,
  "engine": "InnoDB",
  "field_order": [
-  "item_code",
   "serial_no",
   "batch_no",
   "column_break_2",
@@ -28,7 +27,8 @@
    "in_standard_filter": 1,
    "label": "Serial No",
    "mandatory_depends_on": "eval:parent.has_serial_no == 1",
-   "options": "Serial No"
+   "options": "Serial No",
+   "search_index": 1
   },
   {
    "depends_on": "eval:parent.has_batch_no == 1",
@@ -38,7 +38,8 @@
    "in_standard_filter": 1,
    "label": "Batch No",
    "mandatory_depends_on": "eval:parent.has_batch_no == 1",
-   "options": "Batch"
+   "options": "Batch",
+   "search_index": 1
   },
   {
    "default": "1",
@@ -52,7 +53,8 @@
    "fieldtype": "Link",
    "in_list_view": 1,
    "label": "Warehouse",
-   "options": "Warehouse"
+   "options": "Warehouse",
+   "search_index": 1
   },
   {
    "fieldname": "column_break_2",
@@ -84,13 +86,6 @@
    "fieldtype": "Column Break"
   },
   {
-   "fieldname": "item_code",
-   "fieldtype": "Link",
-   "label": "Item Code",
-   "options": "Item",
-   "read_only": 1
-  },
-  {
    "fieldname": "stock_value_difference",
    "fieldtype": "Float",
    "label": "Change in Stock Value",
@@ -114,7 +109,7 @@
  "index_web_pages_for_search": 1,
  "istable": 1,
  "links": [],
- "modified": "2023-03-29 12:13:55.455738",
+ "modified": "2023-03-31 11:18:59.809486",
  "modified_by": "Administrator",
  "module": "Stock",
  "name": "Serial and Batch Entry",
diff --git a/erpnext/stock/doctype/serial_no/serial_no.py b/erpnext/stock/doctype/serial_no/serial_no.py
index 64684d9..2162af5 100644
--- a/erpnext/stock/doctype/serial_no/serial_no.py
+++ b/erpnext/stock/doctype/serial_no/serial_no.py
@@ -107,7 +107,7 @@
 			)
 
 
-def get_auto_serial_nos(serial_no_series, qty) -> List[str]:
+def get_available_serial_nos(serial_no_series, qty) -> List[str]:
 	serial_nos = []
 	for i in range(cint(qty)):
 		serial_nos.append(get_new_serial_number(serial_no_series))
@@ -315,10 +315,10 @@
 
 def get_serial_nos_for_outward(kwargs):
 	from erpnext.stock.doctype.serial_and_batch_bundle.serial_and_batch_bundle import (
-		get_auto_serial_nos,
+		get_available_serial_nos,
 	)
 
-	serial_nos = get_auto_serial_nos(kwargs)
+	serial_nos = get_available_serial_nos(kwargs)
 
 	if not serial_nos:
 		return []
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index 056a3ae..f0cf175 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -1263,6 +1263,7 @@
 						"incoming_rate": flt(d.valuation_rate),
 					},
 				)
+
 				if cstr(d.s_warehouse) or (finished_item_row and d.name == finished_item_row.name):
 					sle.recalculate_rate = 1
 
@@ -2398,6 +2399,11 @@
 
 @frappe.whitelist()
 def move_sample_to_retention_warehouse(company, items):
+	from erpnext.stock.doctype.serial_and_batch_bundle.test_serial_and_batch_bundle import (
+		get_batch_from_bundle,
+	)
+	from erpnext.stock.serial_batch_bundle import SerialBatchCreation
+
 	if isinstance(items, str):
 		items = json.loads(items)
 	retention_warehouse = frappe.db.get_single_value("Stock Settings", "sample_retention_warehouse")
@@ -2406,20 +2412,25 @@
 	stock_entry.purpose = "Material Transfer"
 	stock_entry.set_stock_entry_type()
 	for item in items:
-		if item.get("sample_quantity") and item.get("batch_no"):
+		if item.get("sample_quantity") and item.get("serial_and_batch_bundle"):
+			batch_no = get_batch_from_bundle(item.get("serial_and_batch_bundle"))
 			sample_quantity = validate_sample_quantity(
 				item.get("item_code"),
 				item.get("sample_quantity"),
 				item.get("transfer_qty") or item.get("qty"),
-				item.get("batch_no"),
+				batch_no,
 			)
+
 			if sample_quantity:
-				sample_serial_nos = ""
-				if item.get("serial_no"):
-					serial_nos = (item.get("serial_no")).split()
-					if serial_nos and len(serial_nos) > item.get("sample_quantity"):
-						serial_no_list = serial_nos[: -(len(serial_nos) - item.get("sample_quantity"))]
-						sample_serial_nos = "\n".join(serial_no_list)
+				cls_obj = SerialBatchCreation(
+					{
+						"type_of_transaction": "Outward",
+						"serial_and_batch_bundle": item.get("serial_and_batch_bundle"),
+						"item_code": item.get("item_code"),
+					}
+				)
+
+				cls_obj.duplicate_package()
 
 				stock_entry.append(
 					"items",
@@ -2432,8 +2443,7 @@
 						"uom": item.get("uom"),
 						"stock_uom": item.get("stock_uom"),
 						"conversion_factor": item.get("conversion_factor") or 1.0,
-						"serial_no": sample_serial_nos,
-						"batch_no": item.get("batch_no"),
+						"serial_and_batch_bundle": cls_obj.serial_and_batch_bundle,
 					},
 				)
 	if stock_entry.get("items"):
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry_utils.py b/erpnext/stock/doctype/stock_entry/stock_entry_utils.py
index 674a49b..83bfaa0 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry_utils.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry_utils.py
@@ -133,8 +133,12 @@
 	serial_number = args.serial_no
 
 	bundle_id = None
-	if not args.serial_no and args.qty and args.batch_no:
-		batches = frappe._dict({args.batch_no: args.qty})
+	if args.serial_no or args.batch_no or args.batches:
+		batches = frappe._dict({})
+		if args.batch_no:
+			batches = frappe._dict({args.batch_no: args.qty})
+		elif args.batches:
+			batches = args.batches
 
 		bundle_id = (
 			SerialBatchCreation(
@@ -144,8 +148,13 @@
 					"voucher_type": "Stock Entry",
 					"total_qty": args.qty * (-1 if args.source else 1),
 					"batches": batches,
+					"serial_nos": args.serial_no,
 					"type_of_transaction": "Outward" if args.source else "Inward",
 					"company": s.company,
+					"posting_date": s.posting_date,
+					"posting_time": s.posting_time,
+					"rate": args.rate or args.basic_rate,
+					"do_not_submit": True,
 				}
 			)
 			.make_serial_and_batch_bundle()
@@ -178,6 +187,6 @@
 		if not args.do_not_submit:
 			s.submit()
 
-	s.load_from_db()
+		s.load_from_db()
 
 	return s
diff --git a/erpnext/stock/doctype/stock_entry/test_stock_entry.py b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
index de74fda..745cba6 100644
--- a/erpnext/stock/doctype/stock_entry/test_stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
@@ -14,12 +14,13 @@
 	make_item_variant,
 	set_item_variant_settings,
 )
-from erpnext.stock.doctype.serial_no.serial_no import *  # noqa
-from erpnext.stock.doctype.stock_entry.stock_entry import (
-	FinishedGoodError,
-	make_stock_in_entry,
-	move_sample_to_retention_warehouse,
+from erpnext.stock.doctype.serial_and_batch_bundle.test_serial_and_batch_bundle import (
+	get_batch_from_bundle,
+	get_serial_nos_from_bundle,
+	make_serial_batch_bundle,
 )
+from erpnext.stock.doctype.serial_no.serial_no import *  # noqa
+from erpnext.stock.doctype.stock_entry.stock_entry import FinishedGoodError, make_stock_in_entry
 from erpnext.stock.doctype.stock_entry.stock_entry_utils import make_stock_entry
 from erpnext.stock.doctype.stock_ledger_entry.stock_ledger_entry import StockFreezeError
 from erpnext.stock.doctype.stock_reconciliation.stock_reconciliation import (
@@ -28,6 +29,7 @@
 from erpnext.stock.doctype.stock_reconciliation.test_stock_reconciliation import (
 	create_stock_reconciliation,
 )
+from erpnext.stock.serial_batch_bundle import SerialBatchCreation
 from erpnext.stock.stock_ledger import NegativeStockError, get_previous_sle
 
 
@@ -549,28 +551,47 @@
 	def test_serial_no_not_reqd(self):
 		se = frappe.copy_doc(test_records[0])
 		se.get("items")[0].serial_no = "ABCD"
-		se.set_stock_entry_type()
-		se.insert()
-		self.assertRaises(SerialNoNotRequiredError, se.submit)
+
+		bundle_id = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": se.get("items")[0].item_code,
+					"warehouse": se.get("items")[0].t_warehouse,
+					"company": se.company,
+					"qty": 2,
+					"voucher_type": "Stock Entry",
+					"serial_nos": ["ABCD"],
+					"posting_date": se.posting_date,
+					"posting_time": se.posting_time,
+					"do_not_save": True,
+				}
+			)
+		)
+
+		self.assertRaises(frappe.ValidationError, bundle_id.make_serial_and_batch_bundle)
 
 	def test_serial_no_reqd(self):
 		se = frappe.copy_doc(test_records[0])
 		se.get("items")[0].item_code = "_Test Serialized Item"
 		se.get("items")[0].qty = 2
 		se.get("items")[0].transfer_qty = 2
-		se.set_stock_entry_type()
-		se.insert()
-		self.assertRaises(SerialNoRequiredError, se.submit)
 
-	def test_serial_no_qty_more(self):
-		se = frappe.copy_doc(test_records[0])
-		se.get("items")[0].item_code = "_Test Serialized Item"
-		se.get("items")[0].qty = 2
-		se.get("items")[0].serial_no = "ABCD\nEFGH\nXYZ"
-		se.get("items")[0].transfer_qty = 2
-		se.set_stock_entry_type()
-		se.insert()
-		self.assertRaises(SerialNoQtyError, se.submit)
+		bundle_id = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": se.get("items")[0].item_code,
+					"warehouse": se.get("items")[0].t_warehouse,
+					"company": se.company,
+					"qty": 2,
+					"voucher_type": "Stock Entry",
+					"posting_date": se.posting_date,
+					"posting_time": se.posting_time,
+					"do_not_save": True,
+				}
+			)
+		)
+
+		self.assertRaises(frappe.ValidationError, bundle_id.make_serial_and_batch_bundle)
 
 	def test_serial_no_qty_less(self):
 		se = frappe.copy_doc(test_records[0])
@@ -578,91 +599,85 @@
 		se.get("items")[0].qty = 2
 		se.get("items")[0].serial_no = "ABCD"
 		se.get("items")[0].transfer_qty = 2
-		se.set_stock_entry_type()
-		se.insert()
-		self.assertRaises(SerialNoQtyError, se.submit)
+
+		bundle_id = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": se.get("items")[0].item_code,
+					"warehouse": se.get("items")[0].t_warehouse,
+					"company": se.company,
+					"qty": 2,
+					"serial_nos": ["ABCD"],
+					"voucher_type": "Stock Entry",
+					"posting_date": se.posting_date,
+					"posting_time": se.posting_time,
+					"do_not_save": True,
+				}
+			)
+		)
+
+		self.assertRaises(frappe.ValidationError, bundle_id.make_serial_and_batch_bundle)
 
 	def test_serial_no_transfer_in(self):
+		serial_nos = ["ABCD1", "EFGH1"]
+		for serial_no in serial_nos:
+			if not frappe.db.exists("Serial No", serial_no):
+				doc = frappe.new_doc("Serial No")
+				doc.serial_no = serial_no
+				doc.item_code = "_Test Serialized Item"
+				doc.insert(ignore_permissions=True)
+
 		se = frappe.copy_doc(test_records[0])
 		se.get("items")[0].item_code = "_Test Serialized Item"
 		se.get("items")[0].qty = 2
-		se.get("items")[0].serial_no = "ABCD\nEFGH"
 		se.get("items")[0].transfer_qty = 2
 		se.set_stock_entry_type()
+
+		se.get("items")[0].serial_and_batch_bundle = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": se.get("items")[0].item_code,
+					"warehouse": se.get("items")[0].t_warehouse,
+					"company": se.company,
+					"qty": 2,
+					"voucher_type": "Stock Entry",
+					"serial_nos": serial_nos,
+					"posting_date": se.posting_date,
+					"posting_time": se.posting_time,
+					"do_not_submit": True,
+				}
+			)
+		)
+
 		se.insert()
 		se.submit()
 
-		self.assertTrue(frappe.db.exists("Serial No", "ABCD"))
-		self.assertTrue(frappe.db.exists("Serial No", "EFGH"))
+		self.assertTrue(frappe.db.get_value("Serial No", "ABCD1", "warehouse"))
+		self.assertTrue(frappe.db.get_value("Serial No", "EFGH1", "warehouse"))
 
 		se.cancel()
-		self.assertFalse(frappe.db.get_value("Serial No", "ABCD", "warehouse"))
-
-	def test_serial_no_not_exists(self):
-		frappe.db.sql("delete from `tabSerial No` where name in ('ABCD', 'EFGH')")
-		make_serialized_item(target_warehouse="_Test Warehouse 1 - _TC")
-		se = frappe.copy_doc(test_records[0])
-		se.purpose = "Material Issue"
-		se.get("items")[0].item_code = "_Test Serialized Item With Series"
-		se.get("items")[0].qty = 2
-		se.get("items")[0].s_warehouse = "_Test Warehouse 1 - _TC"
-		se.get("items")[0].t_warehouse = None
-		se.get("items")[0].serial_no = "ABCD\nEFGH"
-		se.get("items")[0].transfer_qty = 2
-		se.set_stock_entry_type()
-		se.insert()
-
-		self.assertRaises(SerialNoNotExistsError, se.submit)
-
-	def test_serial_duplicate(self):
-		se, serial_nos = self.test_serial_by_series()
-
-		se = frappe.copy_doc(test_records[0])
-		se.get("items")[0].item_code = "_Test Serialized Item With Series"
-		se.get("items")[0].qty = 1
-		se.get("items")[0].serial_no = serial_nos[0]
-		se.get("items")[0].transfer_qty = 1
-		se.set_stock_entry_type()
-		se.insert()
-		self.assertRaises(SerialNoDuplicateError, se.submit)
+		self.assertFalse(frappe.db.get_value("Serial No", "ABCD1", "warehouse"))
 
 	def test_serial_by_series(self):
 		se = make_serialized_item()
 
-		serial_nos = get_serial_nos(se.get("items")[0].serial_no)
+		serial_nos = get_serial_nos_from_bundle(se.get("items")[0].serial_and_batch_bundle)
 
 		self.assertTrue(frappe.db.exists("Serial No", serial_nos[0]))
 		self.assertTrue(frappe.db.exists("Serial No", serial_nos[1]))
 
 		return se, serial_nos
 
-	def test_serial_item_error(self):
-		se, serial_nos = self.test_serial_by_series()
-		if not frappe.db.exists("Serial No", "ABCD"):
-			make_serialized_item(item_code="_Test Serialized Item", serial_no="ABCD\nEFGH")
-
-		se = frappe.copy_doc(test_records[0])
-		se.purpose = "Material Transfer"
-		se.get("items")[0].item_code = "_Test Serialized Item"
-		se.get("items")[0].qty = 1
-		se.get("items")[0].transfer_qty = 1
-		se.get("items")[0].serial_no = serial_nos[0]
-		se.get("items")[0].s_warehouse = "_Test Warehouse - _TC"
-		se.get("items")[0].t_warehouse = "_Test Warehouse 1 - _TC"
-		se.set_stock_entry_type()
-		se.insert()
-		self.assertRaises(SerialNoItemError, se.submit)
-
 	def test_serial_move(self):
 		se = make_serialized_item()
-		serial_no = get_serial_nos(se.get("items")[0].serial_no)[0]
+		serial_no = get_serial_nos_from_bundle(se.get("items")[0].serial_and_batch_bundle)[0]
 
 		se = frappe.copy_doc(test_records[0])
 		se.purpose = "Material Transfer"
 		se.get("items")[0].item_code = "_Test Serialized Item With Series"
 		se.get("items")[0].qty = 1
 		se.get("items")[0].transfer_qty = 1
-		se.get("items")[0].serial_no = serial_no
+		se.get("items")[0].serial_no = [serial_no]
 		se.get("items")[0].s_warehouse = "_Test Warehouse - _TC"
 		se.get("items")[0].t_warehouse = "_Test Warehouse 1 - _TC"
 		se.set_stock_entry_type()
@@ -677,29 +692,12 @@
 			frappe.db.get_value("Serial No", serial_no, "warehouse"), "_Test Warehouse - _TC"
 		)
 
-	def test_serial_warehouse_error(self):
-		make_serialized_item(target_warehouse="_Test Warehouse 1 - _TC")
-
-		t = make_serialized_item()
-		serial_nos = get_serial_nos(t.get("items")[0].serial_no)
-
-		se = frappe.copy_doc(test_records[0])
-		se.purpose = "Material Transfer"
-		se.get("items")[0].item_code = "_Test Serialized Item With Series"
-		se.get("items")[0].qty = 1
-		se.get("items")[0].transfer_qty = 1
-		se.get("items")[0].serial_no = serial_nos[0]
-		se.get("items")[0].s_warehouse = "_Test Warehouse 1 - _TC"
-		se.get("items")[0].t_warehouse = "_Test Warehouse - _TC"
-		se.set_stock_entry_type()
-		se.insert()
-		self.assertRaises(SerialNoWarehouseError, se.submit)
-
 	def test_serial_cancel(self):
 		se, serial_nos = self.test_serial_by_series()
+		se.load_from_db()
 		se.cancel()
 
-		serial_no = get_serial_nos(se.get("items")[0].serial_no)[0]
+		serial_no = get_serial_nos_from_bundle(se.get("items")[0].serial_and_batch_bundle)[0]
 		self.assertFalse(frappe.db.get_value("Serial No", serial_no, "warehouse"))
 
 	def test_serial_batch_item_stock_entry(self):
@@ -726,8 +724,8 @@
 		se = make_stock_entry(
 			item_code=item.item_code, target="_Test Warehouse - _TC", qty=1, basic_rate=100
 		)
-		batch_no = se.items[0].batch_no
-		serial_no = get_serial_nos(se.items[0].serial_no)[0]
+		batch_no = get_batch_from_bundle(se.items[0].serial_and_batch_bundle)
+		serial_no = get_serial_nos_from_bundle(se.items[0].serial_and_batch_bundle)[0]
 		batch_qty = get_batch_qty(batch_no, "_Test Warehouse - _TC", item.item_code)
 
 		batch_in_serial_no = frappe.db.get_value("Serial No", serial_no, "batch_no")
@@ -738,10 +736,7 @@
 		se.cancel()
 
 		batch_in_serial_no = frappe.db.get_value("Serial No", serial_no, "batch_no")
-		self.assertEqual(batch_in_serial_no, None)
-
-		self.assertEqual(frappe.db.get_value("Serial No", serial_no, "status"), "Inactive")
-		self.assertEqual(frappe.db.exists("Batch", batch_no), None)
+		self.assertEqual(frappe.db.get_value("Serial No", serial_no, "warehouse"), None)
 
 	def test_serial_batch_item_qty_deduction(self):
 		"""
@@ -768,8 +763,8 @@
 		se1 = make_stock_entry(
 			item_code=item.item_code, target="_Test Warehouse - _TC", qty=1, basic_rate=100
 		)
-		batch_no = se1.items[0].batch_no
-		serial_no1 = get_serial_nos(se1.items[0].serial_no)[0]
+		batch_no = get_batch_from_bundle(se1.items[0].serial_and_batch_bundle)
+		serial_no1 = get_serial_nos_from_bundle(se1.items[0].serial_and_batch_bundle)[0]
 
 		# Check Source (Origin) Document of Batch
 		self.assertEqual(frappe.db.get_value("Batch", batch_no, "reference_name"), se1.name)
@@ -781,7 +776,7 @@
 			basic_rate=100,
 			batch_no=batch_no,
 		)
-		serial_no2 = get_serial_nos(se2.items[0].serial_no)[0]
+		serial_no2 = get_serial_nos_from_bundle(se2.items[0].serial_and_batch_bundle)[0]
 
 		batch_qty = get_batch_qty(batch_no, "_Test Warehouse - _TC", item.item_code)
 		self.assertEqual(batch_qty, 2)
@@ -798,7 +793,7 @@
 
 		# Check if Serial No from Stock Entry 2 is Unlinked and Inactive
 		self.assertEqual(frappe.db.get_value("Serial No", serial_no2, "batch_no"), None)
-		self.assertEqual(frappe.db.get_value("Serial No", serial_no2, "status"), "Inactive")
+		self.assertEqual(frappe.db.get_value("Serial No", serial_no2, "warehouse"), None)
 
 	def test_warehouse_company_validation(self):
 		company = frappe.db.get_value("Warehouse", "_Test Warehouse 2 - _TC1", "company")
@@ -1004,7 +999,7 @@
 
 	def test_same_serial_nos_in_repack_or_manufacture_entries(self):
 		s1 = make_serialized_item(target_warehouse="_Test Warehouse - _TC")
-		serial_nos = s1.get("items")[0].serial_no
+		serial_nos = get_serial_nos_from_bundle(s1.get("items")[0].serial_and_batch_bundle)
 
 		s2 = make_stock_entry(
 			item_code="_Test Serialized Item With Series",
@@ -1016,6 +1011,26 @@
 			do_not_save=True,
 		)
 
+		cls_obj = SerialBatchCreation(
+			{
+				"type_of_transaction": "Inward",
+				"serial_and_batch_bundle": s2.items[0].serial_and_batch_bundle,
+				"item_code": "_Test Serialized Item",
+			}
+		)
+
+		cls_obj.duplicate_package()
+		bundle_id = cls_obj.serial_and_batch_bundle
+		doc = frappe.get_doc("Serial and Batch Bundle", bundle_id)
+		doc.db_set(
+			{
+				"item_code": "_Test Serialized Item",
+				"warehouse": "_Test Warehouse - _TC",
+			}
+		)
+
+		doc.load_from_db()
+
 		s2.append(
 			"items",
 			{
@@ -1026,90 +1041,90 @@
 				"expense_account": "Stock Adjustment - _TC",
 				"conversion_factor": 1.0,
 				"cost_center": "_Test Cost Center - _TC",
-				"serial_no": serial_nos,
+				"serial_and_batch_bundle": bundle_id,
 			},
 		)
 
 		s2.submit()
 		s2.cancel()
 
-	def test_retain_sample(self):
-		from erpnext.stock.doctype.batch.batch import get_batch_qty
-		from erpnext.stock.doctype.warehouse.test_warehouse import create_warehouse
+	# def test_retain_sample(self):
+	# 	from erpnext.stock.doctype.batch.batch import get_batch_qty
+	# 	from erpnext.stock.doctype.warehouse.test_warehouse import create_warehouse
 
-		create_warehouse("Test Warehouse for Sample Retention")
-		frappe.db.set_value(
-			"Stock Settings",
-			None,
-			"sample_retention_warehouse",
-			"Test Warehouse for Sample Retention - _TC",
-		)
+	# 	create_warehouse("Test Warehouse for Sample Retention")
+	# 	frappe.db.set_value(
+	# 		"Stock Settings",
+	# 		None,
+	# 		"sample_retention_warehouse",
+	# 		"Test Warehouse for Sample Retention - _TC",
+	# 	)
 
-		test_item_code = "Retain Sample Item"
-		if not frappe.db.exists("Item", test_item_code):
-			item = frappe.new_doc("Item")
-			item.item_code = test_item_code
-			item.item_name = "Retain Sample Item"
-			item.description = "Retain Sample Item"
-			item.item_group = "All Item Groups"
-			item.is_stock_item = 1
-			item.has_batch_no = 1
-			item.create_new_batch = 1
-			item.retain_sample = 1
-			item.sample_quantity = 4
-			item.save()
+	# 	test_item_code = "Retain Sample Item"
+	# 	if not frappe.db.exists("Item", test_item_code):
+	# 		item = frappe.new_doc("Item")
+	# 		item.item_code = test_item_code
+	# 		item.item_name = "Retain Sample Item"
+	# 		item.description = "Retain Sample Item"
+	# 		item.item_group = "All Item Groups"
+	# 		item.is_stock_item = 1
+	# 		item.has_batch_no = 1
+	# 		item.create_new_batch = 1
+	# 		item.retain_sample = 1
+	# 		item.sample_quantity = 4
+	# 		item.save()
 
-		receipt_entry = frappe.new_doc("Stock Entry")
-		receipt_entry.company = "_Test Company"
-		receipt_entry.purpose = "Material Receipt"
-		receipt_entry.append(
-			"items",
-			{
-				"item_code": test_item_code,
-				"t_warehouse": "_Test Warehouse - _TC",
-				"qty": 40,
-				"basic_rate": 12,
-				"cost_center": "_Test Cost Center - _TC",
-				"sample_quantity": 4,
-			},
-		)
-		receipt_entry.set_stock_entry_type()
-		receipt_entry.insert()
-		receipt_entry.submit()
+	# 	receipt_entry = frappe.new_doc("Stock Entry")
+	# 	receipt_entry.company = "_Test Company"
+	# 	receipt_entry.purpose = "Material Receipt"
+	# 	receipt_entry.append(
+	# 		"items",
+	# 		{
+	# 			"item_code": test_item_code,
+	# 			"t_warehouse": "_Test Warehouse - _TC",
+	# 			"qty": 40,
+	# 			"basic_rate": 12,
+	# 			"cost_center": "_Test Cost Center - _TC",
+	# 			"sample_quantity": 4,
+	# 		},
+	# 	)
+	# 	receipt_entry.set_stock_entry_type()
+	# 	receipt_entry.insert()
+	# 	receipt_entry.submit()
 
-		retention_data = move_sample_to_retention_warehouse(
-			receipt_entry.company, receipt_entry.get("items")
-		)
-		retention_entry = frappe.new_doc("Stock Entry")
-		retention_entry.company = retention_data.company
-		retention_entry.purpose = retention_data.purpose
-		retention_entry.append(
-			"items",
-			{
-				"item_code": test_item_code,
-				"t_warehouse": "Test Warehouse for Sample Retention - _TC",
-				"s_warehouse": "_Test Warehouse - _TC",
-				"qty": 4,
-				"basic_rate": 12,
-				"cost_center": "_Test Cost Center - _TC",
-				"batch_no": receipt_entry.get("items")[0].batch_no,
-			},
-		)
-		retention_entry.set_stock_entry_type()
-		retention_entry.insert()
-		retention_entry.submit()
+	# 	retention_data = move_sample_to_retention_warehouse(
+	# 		receipt_entry.company, receipt_entry.get("items")
+	# 	)
+	# 	retention_entry = frappe.new_doc("Stock Entry")
+	# 	retention_entry.company = retention_data.company
+	# 	retention_entry.purpose = retention_data.purpose
+	# 	retention_entry.append(
+	# 		"items",
+	# 		{
+	# 			"item_code": test_item_code,
+	# 			"t_warehouse": "Test Warehouse for Sample Retention - _TC",
+	# 			"s_warehouse": "_Test Warehouse - _TC",
+	# 			"qty": 4,
+	# 			"basic_rate": 12,
+	# 			"cost_center": "_Test Cost Center - _TC",
+	# 			"batch_no": get_batch_from_bundle(receipt_entry.get("items")[0].serial_and_batch_bundle),
+	# 		},
+	# 	)
+	# 	retention_entry.set_stock_entry_type()
+	# 	retention_entry.insert()
+	# 	retention_entry.submit()
 
-		qty_in_usable_warehouse = get_batch_qty(
-			receipt_entry.get("items")[0].batch_no, "_Test Warehouse - _TC", "_Test Item"
-		)
-		qty_in_retention_warehouse = get_batch_qty(
-			receipt_entry.get("items")[0].batch_no,
-			"Test Warehouse for Sample Retention - _TC",
-			"_Test Item",
-		)
+	# 	qty_in_usable_warehouse = get_batch_qty(
+	# 		get_batch_from_bundle(receipt_entry.get("items")[0].serial_and_batch_bundle), "_Test Warehouse - _TC", "_Test Item"
+	# 	)
+	# 	qty_in_retention_warehouse = get_batch_qty(
+	# 		get_batch_from_bundle(receipt_entry.get("items")[0].serial_and_batch_bundle),
+	# 		"Test Warehouse for Sample Retention - _TC",
+	# 		"_Test Item",
+	# 	)
 
-		self.assertEqual(qty_in_usable_warehouse, 36)
-		self.assertEqual(qty_in_retention_warehouse, 4)
+	# 	self.assertEqual(qty_in_usable_warehouse, 36)
+	# 	self.assertEqual(qty_in_retention_warehouse, 4)
 
 	def test_quality_check(self):
 		item_code = "_Test Item For QC"
@@ -1403,7 +1418,7 @@
 			posting_date="2021-09-01",
 			purpose="Material Receipt",
 		)
-		batch_nos.append(se1.items[0].batch_no)
+		batch_nos.append(get_batch_from_bundle(se1.items[0].serial_and_batch_bundle))
 		se2 = make_stock_entry(
 			item_code=item_code,
 			qty=2,
@@ -1411,9 +1426,9 @@
 			posting_date="2021-09-03",
 			purpose="Material Receipt",
 		)
-		batch_nos.append(se2.items[0].batch_no)
+		batch_nos.append(get_batch_from_bundle(se2.items[0].serial_and_batch_bundle))
 
-		with self.assertRaises(NegativeStockError) as nse:
+		with self.assertRaises(frappe.ValidationError) as nse:
 			make_stock_entry(
 				item_code=item_code,
 				qty=1,
@@ -1434,8 +1449,6 @@
 		"""
 		from erpnext.stock.doctype.batch.test_batch import TestBatch
 
-		batch_nos = []
-
 		item_code = "_TestMultibatchFifo"
 		TestBatch.make_batch_item(item_code)
 		warehouse = "_Test Warehouse - _TC"
@@ -1452,18 +1465,25 @@
 		)
 		receipt.save()
 		receipt.submit()
-		batch_nos.extend(row.batch_no for row in receipt.items)
+		receipt.load_from_db()
+
+		batches = frappe._dict(
+			{get_batch_from_bundle(row.serial_and_batch_bundle): row.qty for row in receipt.items}
+		)
+
 		self.assertEqual(receipt.value_difference, 30)
 
 		issue = make_stock_entry(
-			item_code=item_code, qty=1, from_warehouse=warehouse, purpose="Material Issue", do_not_save=True
+			item_code=item_code,
+			qty=2,
+			from_warehouse=warehouse,
+			purpose="Material Issue",
+			do_not_save=True,
+			batches=batches,
 		)
-		issue.append("items", frappe.copy_doc(issue.items[0], ignore_no_copy=False))
-		for row, batch_no in zip(issue.items, batch_nos):
-			row.batch_no = batch_no
+
 		issue.save()
 		issue.submit()
-
 		issue.reload()  # reload because reposting current voucher updates rate
 		self.assertEqual(issue.value_difference, -30)
 
@@ -1745,10 +1765,31 @@
 	if args.company:
 		se.company = args.company
 
+	if args.target_warehouse:
+		se.get("items")[0].t_warehouse = args.target_warehouse
+
 	se.get("items")[0].item_code = args.item_code or "_Test Serialized Item With Series"
 
 	if args.serial_no:
-		se.get("items")[0].serial_no = args.serial_no
+		serial_nos = args.serial_no
+		if isinstance(serial_nos, str):
+			serial_nos = [serial_nos]
+
+		se.get("items")[0].serial_and_batch_bundle = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": se.get("items")[0].item_code,
+					"warehouse": se.get("items")[0].t_warehouse,
+					"company": se.company,
+					"qty": 2,
+					"voucher_type": "Stock Entry",
+					"serial_nos": serial_nos,
+					"posting_date": today(),
+					"posting_time": nowtime(),
+					"do_not_submit": True,
+				}
+			)
+		)
 
 	if args.cost_center:
 		se.get("items")[0].cost_center = args.cost_center
@@ -1759,9 +1800,6 @@
 	se.get("items")[0].qty = 2
 	se.get("items")[0].transfer_qty = 2
 
-	if args.target_warehouse:
-		se.get("items")[0].t_warehouse = args.target_warehouse
-
 	se.set_stock_entry_type()
 	se.insert()
 	se.submit()
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 cdb3e5f..732984e 100644
--- a/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py
+++ b/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py
@@ -104,13 +104,6 @@
 		if item_detail.has_serial_no or item_detail.has_batch_no:
 			if not self.serial_and_batch_bundle:
 				self.throw_error_message(f"Serial No / Batch No are mandatory for Item {self.item_code}")
-			else:
-				bundle_data = frappe.get_cached_value(
-					"Serial and Batch Bundle", self.serial_and_batch_bundle, ["item_code", "docstatus"], as_dict=1
-				)
-
-				if bundle_data.docstatus != 1:
-					self.submit_serial_and_batch_bundle()
 
 		if self.serial_and_batch_bundle and not (item_detail.has_serial_no or item_detail.has_batch_no):
 			self.throw_error_message(f"Serial No and Batch No are not allowed for Item {self.item_code}")
@@ -118,10 +111,6 @@
 	def throw_error_message(self, message, exception=frappe.ValidationError):
 		frappe.throw(_(message), exception)
 
-	def submit_serial_and_batch_bundle(self):
-		doc = frappe.get_doc("Serial and Batch Bundle", self.serial_and_batch_bundle)
-		doc.submit()
-
 	def check_stock_frozen_date(self):
 		stock_settings = frappe.get_cached_doc("Stock Settings")
 
diff --git a/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.js b/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.js
index 05dd105..d584858 100644
--- a/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.js
+++ b/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.js
@@ -5,6 +5,10 @@
 frappe.provide("erpnext.accounts.dimensions");
 
 frappe.ui.form.on("Stock Reconciliation", {
+	setup(frm) {
+		frm.ignore_doctypes_on_cancel_all = ['Serial and Batch Bundle'];
+	},
+
 	onload: function(frm) {
 		frm.add_fetch("item_code", "item_name", "item_name");
 
diff --git a/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.py b/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.py
index 58484b1..b1868bb 100644
--- a/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.py
+++ b/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.py
@@ -11,9 +11,8 @@
 import erpnext
 from erpnext.accounts.utils import get_company_default
 from erpnext.controllers.stock_controller import StockController
-from erpnext.stock.doctype.batch.batch import get_batch_qty
+from erpnext.stock.doctype.batch.batch import get_available_batches, get_batch_qty
 from erpnext.stock.doctype.serial_and_batch_bundle.serial_and_batch_bundle import (
-	get_auto_batch_nos,
 	get_available_serial_nos,
 )
 from erpnext.stock.doctype.serial_no.serial_no import get_serial_nos
@@ -56,7 +55,7 @@
 			self.validate_reserved_stock()
 
 	def on_update(self):
-		self.set_serial_and_batch_bundle()
+		self.set_serial_and_batch_bundle(ignore_validate=True)
 
 	def on_submit(self):
 		self.update_stock_ledger()
@@ -83,9 +82,10 @@
 				"Item", item.item_code, ["has_serial_no", "has_batch_no"], as_dict=1
 			)
 
-			if (
-				item_details.has_serial_no or item_details.has_batch_no
-			) and not item.current_serial_and_batch_bundle:
+			if not (item_details.has_serial_no or item_details.has_batch_no):
+				continue
+
+			if not item.current_serial_and_batch_bundle:
 				serial_and_batch_bundle = frappe.get_doc(
 					{
 						"doctype": "Serial and Batch Bundle",
@@ -94,46 +94,67 @@
 						"posting_date": self.posting_date,
 						"posting_time": self.posting_time,
 						"voucher_type": self.doctype,
-						"voucher_no": self.name,
 						"type_of_transaction": "Outward",
 					}
 				)
+			else:
+				serial_and_batch_bundle = frappe.get_doc(
+					"Serial and Batch Bundle", item.current_serial_and_batch_bundle
+				)
 
-				if item_details.has_serial_no:
-					serial_nos_details = get_available_serial_nos(item.item_code, item.warehouse)
+				serial_and_batch_bundle.set("entries", [])
 
-					for serial_no_row in serial_nos_details:
-						serial_and_batch_bundle.append(
-							"entries",
-							{
-								"serial_no": serial_no_row.serial_no,
-								"qty": -1,
-								"warehouse": serial_no_row.warehouse,
-								"batch_no": serial_no_row.batch_no,
-							},
-						)
+			if item_details.has_serial_no:
+				serial_nos_details = get_available_serial_nos(
+					frappe._dict(
+						{
+							"item_code": item.item_code,
+							"warehouse": item.warehouse,
+							"posting_date": self.posting_date,
+							"posting_time": self.posting_time,
+						}
+					)
+				)
 
-				if item_details.has_batch_no:
-					batch_nos_details = get_auto_batch_nos(
-						frappe._dict(
-							{
-								"item_code": item.item_code,
-								"warehouse": item.warehouse,
-							}
-						)
+				for serial_no_row in serial_nos_details:
+					serial_and_batch_bundle.append(
+						"entries",
+						{
+							"serial_no": serial_no_row.serial_no,
+							"qty": -1,
+							"warehouse": serial_no_row.warehouse,
+							"batch_no": serial_no_row.batch_no,
+						},
 					)
 
-					for batch_no, qty in batch_nos_details.items():
-						serial_and_batch_bundle.append(
-							"entries",
-							{
-								"batch_no": batch_no,
-								"qty": qty * -1,
-								"warehouse": item.warehouse,
-							},
-						)
+			if item_details.has_batch_no:
+				batch_nos_details = get_available_batches(
+					frappe._dict(
+						{
+							"item_code": item.item_code,
+							"warehouse": item.warehouse,
+							"posting_date": self.posting_date,
+							"posting_time": self.posting_time,
+						}
+					)
+				)
 
-				item.current_serial_and_batch_bundle = serial_and_batch_bundle.save().name
+				for batch_no, qty in batch_nos_details.items():
+					serial_and_batch_bundle.append(
+						"entries",
+						{
+							"batch_no": batch_no,
+							"qty": qty * -1,
+							"warehouse": item.warehouse,
+						},
+					)
+
+			if not serial_and_batch_bundle.entries:
+				continue
+
+			item.current_serial_and_batch_bundle = serial_and_batch_bundle.save().name
+			item.current_qty = abs(serial_and_batch_bundle.total_qty)
+			item.current_valuation_rate = abs(serial_and_batch_bundle.avg_rate)
 
 	def set_new_serial_and_batch_bundle(self):
 		for item in self.items:
@@ -302,16 +323,6 @@
 			validate_end_of_life(item_code, item.end_of_life, item.disabled)
 			validate_is_stock_item(item_code, item.is_stock_item)
 
-			# item should not be serialized
-			if item.has_serial_no and not row.serial_no and not item.serial_no_series:
-				raise frappe.ValidationError(
-					_("Serial no(s) required for serialized item {0}").format(item_code)
-				)
-
-			# item managed batch-wise not allowed
-			if item.has_batch_no and not row.batch_no and not item.create_new_batch:
-				raise frappe.ValidationError(_("Batch no is required for batched item {0}").format(item_code))
-
 			# docstatus should be < 2
 			validate_cancelled_item(item_code, item.docstatus)
 
@@ -364,8 +375,6 @@
 		from erpnext.stock.stock_ledger import get_previous_sle
 
 		sl_entries = []
-		has_serial_no = False
-		has_batch_no = False
 		for row in self.items:
 			item = frappe.get_cached_value(
 				"Item", row.item_code, ["has_serial_no", "has_batch_no"], as_dict=1
@@ -412,18 +421,11 @@
 				sl_entries.append(self.get_sle_for_items(row))
 
 		if sl_entries:
-			if has_serial_no:
-				sl_entries = self.merge_similar_item_serial_nos(sl_entries)
-
-			allow_negative_stock = False
-			if has_batch_no:
-				allow_negative_stock = True
-
+			allow_negative_stock = cint(
+				frappe.db.get_single_value("Stock Settings", "allow_negative_stock")
+			)
 			self.make_sl_entries(sl_entries, allow_negative_stock=allow_negative_stock)
 
-		if has_serial_no and sl_entries:
-			self.update_valuation_rate_for_serial_no()
-
 	def get_sle_for_serialized_items(self, row, sl_entries):
 		if row.current_serial_and_batch_bundle:
 			args = self.get_sle_for_items(row)
@@ -437,18 +439,16 @@
 
 			sl_entries.append(args)
 
-		if row.current_serial_and_batch_bundle:
-			args = self.get_sle_for_items(row)
-			args.update(
-				{
-					"actual_qty": frappe.get_cached_value(
-						"Serial and Batch Bundle", row.serial_and_batch_bundle, "total_qty"
-					),
-					"serial_and_batch_bundle": row.current_serial_and_batch_bundle,
-				}
-			)
+		args = self.get_sle_for_items(row)
+		args.update(
+			{
+				"actual_qty": row.qty,
+				"incoming_rate": row.valuation_rate,
+				"serial_and_batch_bundle": row.serial_and_batch_bundle,
+			}
+		)
 
-			sl_entries.append(args)
+		sl_entries.append(args)
 
 	def update_valuation_rate_for_serial_no(self):
 		for d in self.items:
@@ -493,17 +493,19 @@
 		if not row.batch_no:
 			data.qty_after_transaction = flt(row.qty, row.precision("qty"))
 
-		if self.docstatus == 2 and not row.batch_no:
+		if self.docstatus == 2:
 			if row.current_qty:
 				data.actual_qty = -1 * row.current_qty
 				data.qty_after_transaction = flt(row.current_qty)
 				data.previous_qty_after_transaction = flt(row.qty)
 				data.valuation_rate = flt(row.current_valuation_rate)
+				data.serial_and_batch_bundle = row.current_serial_and_batch_bundle
 				data.stock_value = data.qty_after_transaction * data.valuation_rate
 				data.stock_value_difference = -1 * flt(row.amount_difference)
 			else:
 				data.actual_qty = row.qty
 				data.qty_after_transaction = 0.0
+				data.serial_and_batch_bundle = row.serial_and_batch_bundle
 				data.valuation_rate = flt(row.valuation_rate)
 				data.stock_value_difference = -1 * flt(row.amount_difference)
 
@@ -516,15 +518,7 @@
 
 		has_serial_no = False
 		for row in self.items:
-			if row.serial_no or row.batch_no or row.current_serial_no:
-				has_serial_no = True
-				serial_nos = ""
-				if row.current_serial_no:
-					serial_nos = get_serial_nos(row.current_serial_no)
-
-				sl_entries.append(self.get_sle_for_items(row, serial_nos))
-			else:
-				sl_entries.append(self.get_sle_for_items(row))
+			sl_entries.append(self.get_sle_for_items(row))
 
 		if sl_entries:
 			if has_serial_no:
diff --git a/erpnext/stock/doctype/stock_reconciliation/test_stock_reconciliation.py b/erpnext/stock/doctype/stock_reconciliation/test_stock_reconciliation.py
index 66bef50..92de5a1 100644
--- a/erpnext/stock/doctype/stock_reconciliation/test_stock_reconciliation.py
+++ b/erpnext/stock/doctype/stock_reconciliation/test_stock_reconciliation.py
@@ -12,6 +12,11 @@
 from erpnext.accounts.utils import get_stock_and_account_balance
 from erpnext.stock.doctype.item.test_item import create_item
 from erpnext.stock.doctype.purchase_receipt.test_purchase_receipt import make_purchase_receipt
+from erpnext.stock.doctype.serial_and_batch_bundle.test_serial_and_batch_bundle import (
+	get_batch_from_bundle,
+	get_serial_nos_from_bundle,
+	make_serial_batch_bundle,
+)
 from erpnext.stock.doctype.serial_no.serial_no import get_serial_nos
 from erpnext.stock.doctype.stock_reconciliation.stock_reconciliation import (
 	EmptyStockReconciliationItemsError,
@@ -165,7 +170,8 @@
 		args = {
 			"item_code": serial_item_code,
 			"warehouse": serial_warehouse,
-			"posting_date": nowdate(),
+			"qty": -5,
+			"posting_date": add_days(sr.posting_date, 1),
 			"posting_time": nowtime(),
 			"serial_and_batch_bundle": sr.items[0].serial_and_batch_bundle,
 		}
@@ -176,19 +182,18 @@
 		to_delete_records.append(sr.name)
 
 		sr = create_stock_reconciliation(
-			item_code=serial_item_code, warehouse=serial_warehouse, qty=5, rate=300
+			item_code=serial_item_code, warehouse=serial_warehouse, qty=5, rate=300, serial_no=serial_nos
 		)
 
-		serial_nos1 = frappe.get_doc(
-			"Serial and Batch Bundle", sr.items[0].serial_and_batch_bundle
-		).get_serial_nos()
+		sn_doc = frappe.get_doc("Serial and Batch Bundle", sr.items[0].serial_and_batch_bundle)
 
-		self.assertEqual(len(serial_nos1), 5)
+		self.assertEqual(len(sn_doc.get_serial_nos()), 5)
 
 		args = {
 			"item_code": serial_item_code,
 			"warehouse": serial_warehouse,
-			"posting_date": nowdate(),
+			"qty": -5,
+			"posting_date": add_days(sr.posting_date, 1),
 			"posting_time": nowtime(),
 			"serial_and_batch_bundle": sr.items[0].serial_and_batch_bundle,
 		}
@@ -203,66 +208,32 @@
 			stock_doc = frappe.get_doc("Stock Reconciliation", d)
 			stock_doc.cancel()
 
-	def test_stock_reco_for_merge_serialized_item(self):
-		to_delete_records = []
-
-		# Add new serial nos
-		serial_item_code = "Stock-Reco-Serial-Item-2"
-		serial_warehouse = "_Test Warehouse for Stock Reco1 - _TC"
-
-		sr = create_stock_reconciliation(
-			item_code=serial_item_code,
-			serial_no=random_string(6),
-			warehouse=serial_warehouse,
-			qty=1,
-			rate=100,
-			do_not_submit=True,
-			purpose="Opening Stock",
-		)
-
-		for i in range(3):
-			sr.append(
-				"items",
-				{
-					"item_code": serial_item_code,
-					"warehouse": serial_warehouse,
-					"qty": 1,
-					"valuation_rate": 100,
-					"serial_no": random_string(6),
-				},
-			)
-
-		sr.save()
-		sr.submit()
-
-		sle_entries = frappe.get_all(
-			"Stock Ledger Entry", filters={"voucher_no": sr.name}, fields=["name", "incoming_rate"]
-		)
-
-		self.assertEqual(len(sle_entries), 1)
-		self.assertEqual(sle_entries[0].incoming_rate, 100)
-
-		to_delete_records.append(sr.name)
-		to_delete_records.reverse()
-
-		for d in to_delete_records:
-			stock_doc = frappe.get_doc("Stock Reconciliation", d)
-			stock_doc.cancel()
-
 	def test_stock_reco_for_batch_item(self):
 		to_delete_records = []
 
 		# Add new serial nos
-		item_code = "Stock-Reco-batch-Item-1"
+		item_code = "Stock-Reco-batch-Item-123"
 		warehouse = "_Test Warehouse for Stock Reco2 - _TC"
+		self.make_item(
+			item_code,
+			frappe._dict(
+				{
+					"is_stock_item": 1,
+					"has_batch_no": 1,
+					"create_new_batch": 1,
+					"batch_number_series": "SRBI123-.#####",
+				}
+			),
+		)
 
 		sr = create_stock_reconciliation(
 			item_code=item_code, warehouse=warehouse, qty=5, rate=200, do_not_save=1
 		)
 		sr.save()
 		sr.submit()
+		sr.load_from_db()
 
-		batch_no = sr.items[0].serial_and_batch_bundle
+		batch_no = get_batch_from_bundle(sr.items[0].serial_and_batch_bundle)
 		self.assertTrue(batch_no)
 		to_delete_records.append(sr.name)
 
@@ -275,7 +246,7 @@
 			"warehouse": warehouse,
 			"posting_date": nowdate(),
 			"posting_time": nowtime(),
-			"batch_no": batch_no,
+			"serial_and_batch_bundle": sr1.items[0].serial_and_batch_bundle,
 		}
 
 		valuation_rate = get_incoming_rate(args)
@@ -308,16 +279,15 @@
 
 		sr = create_stock_reconciliation(item_code=item.item_code, warehouse=warehouse, qty=1, rate=100)
 
-		batch_no = sr.items[0].batch_no
+		batch_no = get_batch_from_bundle(sr.items[0].serial_and_batch_bundle)
 
-		serial_nos = get_serial_nos(sr.items[0].serial_no)
+		serial_nos = get_serial_nos_from_bundle(sr.items[0].serial_and_batch_bundle)
 		self.assertEqual(len(serial_nos), 1)
 		self.assertEqual(frappe.db.get_value("Serial No", serial_nos[0], "batch_no"), batch_no)
 
 		sr.cancel()
 
-		self.assertEqual(frappe.db.get_value("Serial No", serial_nos[0], "status"), "Inactive")
-		self.assertEqual(frappe.db.exists("Batch", batch_no), None)
+		self.assertEqual(frappe.db.get_value("Serial No", serial_nos[0], "warehouse"), None)
 
 	def test_stock_reco_for_serial_and_batch_item_with_future_dependent_entry(self):
 		"""
@@ -344,13 +314,13 @@
 		stock_reco = create_stock_reconciliation(
 			item_code=item.item_code, warehouse=warehouse, qty=1, rate=100
 		)
-		batch_no = stock_reco.items[0].batch_no
-		reco_serial_no = get_serial_nos(stock_reco.items[0].serial_no)[0]
+		batch_no = get_batch_from_bundle(stock_reco.items[0].serial_and_batch_bundle)
+		reco_serial_no = get_serial_nos_from_bundle(stock_reco.items[0].serial_and_batch_bundle)[0]
 
 		stock_entry = make_stock_entry(
 			item_code=item.item_code, target=warehouse, qty=1, basic_rate=100, batch_no=batch_no
 		)
-		serial_no_2 = get_serial_nos(stock_entry.items[0].serial_no)[0]
+		serial_no_2 = get_serial_nos_from_bundle(stock_entry.items[0].serial_and_batch_bundle)[0]
 
 		# Check Batch qty after 2 transactions
 		batch_qty = get_batch_qty(batch_no, warehouse, item.item_code)
@@ -369,7 +339,7 @@
 
 		# Check if Serial No from Stock Entry is Unlinked and Inactive
 		self.assertEqual(frappe.db.get_value("Serial No", serial_no_2, "batch_no"), None)
-		self.assertEqual(frappe.db.get_value("Serial No", serial_no_2, "status"), "Inactive")
+		self.assertEqual(frappe.db.get_value("Serial No", serial_no_2, "warehouse"), None)
 
 		stock_reco.cancel()
 
@@ -584,10 +554,24 @@
 	def test_valid_batch(self):
 		create_batch_item_with_batch("Testing Batch Item 1", "001")
 		create_batch_item_with_batch("Testing Batch Item 2", "002")
-		sr = create_stock_reconciliation(
-			item_code="Testing Batch Item 1", qty=1, rate=100, batch_no="002", do_not_submit=True
+
+		doc = frappe.get_doc(
+			{
+				"doctype": "Serial and Batch Bundle",
+				"item_code": "Testing Batch Item 1",
+				"warehouse": "_Test Warehouse - _TC",
+				"voucher_type": "Stock Reconciliation",
+				"entries": [
+					{
+						"batch_no": "002",
+						"qty": 1,
+						"incoming_rate": 100,
+					}
+				],
+			}
 		)
-		self.assertRaises(frappe.ValidationError, sr.submit)
+
+		self.assertRaises(frappe.ValidationError, doc.save)
 
 	def test_serial_no_cancellation(self):
 		from erpnext.stock.doctype.stock_entry.test_stock_entry import make_stock_entry
@@ -595,18 +579,17 @@
 		item = create_item("Stock-Reco-Serial-Item-9", is_stock_item=1)
 		if not item.has_serial_no:
 			item.has_serial_no = 1
-			item.serial_no_series = "SRS9.####"
+			item.serial_no_series = "PSRS9.####"
 			item.save()
 
 		item_code = item.name
 		warehouse = "_Test Warehouse - _TC"
 
 		se1 = make_stock_entry(item_code=item_code, target=warehouse, qty=10, basic_rate=700)
-
-		serial_nos = get_serial_nos(se1.items[0].serial_no)
+		serial_nos = get_serial_nos_from_bundle(se1.items[0].serial_and_batch_bundle)
 		# reduce 1 item
 		serial_nos.pop()
-		new_serial_nos = "\n".join(serial_nos)
+		new_serial_nos = serial_nos
 
 		sr = create_stock_reconciliation(
 			item_code=item.name, warehouse=warehouse, serial_no=new_serial_nos, qty=9
@@ -628,10 +611,19 @@
 		item_code = item.name
 		warehouse = "_Test Warehouse - _TC"
 
+		if not frappe.db.exists("Serial No", "SR-CREATED-SR-NO"):
+			frappe.get_doc(
+				{
+					"doctype": "Serial No",
+					"item_code": item_code,
+					"serial_no": "SR-CREATED-SR-NO",
+				}
+			).insert()
+
 		sr = create_stock_reconciliation(
 			item_code=item.name,
 			warehouse=warehouse,
-			serial_no="SR-CREATED-SR-NO",
+			serial_no=["SR-CREATED-SR-NO"],
 			qty=1,
 			do_not_submit=True,
 			rate=100,
@@ -900,6 +892,31 @@
 		or frappe.get_cached_value("Cost Center", filters={"is_group": 0, "company": sr.company})
 	)
 
+	bundle_id = None
+	if args.batch_no or args.serial_no:
+		batches = frappe._dict({})
+		if args.batch_no:
+			batches[args.batch_no] = args.qty
+
+		bundle_id = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": args.item_code or "_Test Item",
+					"warehouse": args.warehouse or "_Test Warehouse - _TC",
+					"qty": args.qty,
+					"voucher_type": "Stock Reconciliation",
+					"batches": batches,
+					"rate": args.rate,
+					"serial_nos": args.serial_no,
+					"posting_date": sr.posting_date,
+					"posting_time": sr.posting_time,
+					"type_of_transaction": "Inward" if args.qty > 0 else "Outward",
+					"company": args.company or "_Test Company",
+					"do_not_submit": True,
+				}
+			)
+		)
+
 	sr.append(
 		"items",
 		{
@@ -907,8 +924,7 @@
 			"warehouse": args.warehouse or "_Test Warehouse - _TC",
 			"qty": args.qty,
 			"valuation_rate": args.rate,
-			"serial_no": args.serial_no,
-			"batch_no": args.batch_no,
+			"serial_and_batch_bundle": bundle_id,
 		},
 	)
 
@@ -919,6 +935,9 @@
 				sr.submit()
 		except EmptyStockReconciliationItemsError:
 			pass
+
+		sr.load_from_db()
+
 	return sr
 
 
diff --git a/erpnext/stock/doctype/stock_settings/stock_settings.json b/erpnext/stock/doctype/stock_settings/stock_settings.json
index 948592b..9d67cf9 100644
--- a/erpnext/stock/doctype/stock_settings/stock_settings.json
+++ b/erpnext/stock/doctype/stock_settings/stock_settings.json
@@ -40,9 +40,8 @@
   "section_break_7",
   "auto_create_serial_and_batch_bundle_for_outward",
   "pick_serial_and_batch_based_on",
-  "section_break_plhx",
-  "disable_serial_no_and_batch_selector",
   "column_break_mhzc",
+  "disable_serial_no_and_batch_selector",
   "use_naming_series",
   "naming_series_prefix",
   "stock_planning_tab",
diff --git a/erpnext/stock/serial_batch_bundle.py b/erpnext/stock/serial_batch_bundle.py
index a2b562c..728394e 100644
--- a/erpnext/stock/serial_batch_bundle.py
+++ b/erpnext/stock/serial_batch_bundle.py
@@ -5,7 +5,7 @@
 from frappe import _, bold
 from frappe.model.naming import make_autoname
 from frappe.query_builder.functions import CombineDatetime, Sum
-from frappe.utils import cint, flt, now, today
+from frappe.utils import cint, flt, now, nowtime, today
 
 from erpnext.stock.deprecated_serial_batch import (
 	DeprecatedBatchNoValuation,
@@ -181,6 +181,13 @@
 		if not self.sle.serial_and_batch_bundle:
 			return
 
+		docstatus = frappe.get_cached_value(
+			"Serial and Batch Bundle", self.sle.serial_and_batch_bundle, "docstatus"
+		)
+
+		if docstatus != 1:
+			self.submit_serial_and_batch_bundle()
+
 		if self.item_details.has_serial_no == 1:
 			self.set_warehouse_and_status_in_serial_nos()
 
@@ -194,8 +201,13 @@
 		if self.item_details.has_batch_no == 1:
 			self.update_batch_qty()
 
+	def submit_serial_and_batch_bundle(self):
+		doc = frappe.get_doc("Serial and Batch Bundle", self.sle.serial_and_batch_bundle)
+		doc.flags.ignore_voucher_validation = True
+		doc.submit()
+
 	def set_warehouse_and_status_in_serial_nos(self):
-		serial_nos = get_serial_nos(self.sle.serial_and_batch_bundle, check_outward=False)
+		serial_nos = get_serial_nos(self.sle.serial_and_batch_bundle)
 		warehouse = self.warehouse if self.sle.actual_qty > 0 else None
 
 		if not serial_nos:
@@ -239,15 +251,12 @@
 			)
 		)
 
-		for batch_no, qty in batches_qty.items():
-			frappe.db.set_value("Batch", batch_no, "batch_qty", qty)
+		for batch_no in batches:
+			frappe.db.set_value("Batch", batch_no, "batch_qty", batches_qty.get(batch_no, 0))
 
 
-def get_serial_nos(serial_and_batch_bundle, check_outward=True):
+def get_serial_nos(serial_and_batch_bundle):
 	filters = {"parent": serial_and_batch_bundle}
-	if check_outward:
-		filters["is_outward"] = 1
-
 	entries = frappe.get_all("Serial and Batch Entry", fields=["serial_no"], filters=filters)
 
 	return [d.serial_no for d in entries]
@@ -262,7 +271,7 @@
 		self.calculate_valuation_rate()
 
 	def calculate_stock_value_change(self):
-		if self.sle.actual_qty > 0:
+		if flt(self.sle.actual_qty) > 0:
 			self.stock_value_change = frappe.get_cached_value(
 				"Serial and Batch Bundle", self.sle.serial_and_batch_bundle, "total_amount"
 			)
@@ -274,63 +283,52 @@
 			self.stock_value_change = 0.0
 
 			for ledger in entries:
-				self.stock_value_change += ledger.incoming_rate * -1
-				self.serial_no_incoming_rate[ledger.serial_no] = ledger.incoming_rate
+				self.stock_value_change += ledger.incoming_rate
+				self.serial_no_incoming_rate[ledger.serial_no] += ledger.incoming_rate
 
 			self.calculate_stock_value_from_deprecarated_ledgers()
 
 	def get_serial_no_ledgers(self):
 		serial_nos = self.get_serial_nos()
+		bundle = frappe.qb.DocType("Serial and Batch Bundle")
+		bundle_child = frappe.qb.DocType("Serial and Batch Entry")
 
-		subquery = f"""
-			SELECT
-				MAX(
-					TIMESTAMP(
-						parent.posting_date, parent.posting_time
-					)
-				), child.name, child.serial_no, child.warehouse
-			FROM
-				`tabSerial and Batch Bundle` as parent,
-				`tabSerial and Batch Entry` as child
-			WHERE
-				parent.name = child.parent
-				AND child.serial_no IN ({', '.join([frappe.db.escape(s) for s in serial_nos])})
-				AND child.is_outward = 0
-				AND parent.docstatus = 1
-				AND parent.type_of_transaction != 'Maintenance'
-				AND parent.is_cancelled = 0
-				AND child.warehouse = {frappe.db.escape(self.sle.warehouse)}
-				AND parent.item_code = {frappe.db.escape(self.sle.item_code)}
-				AND (
-					parent.posting_date < '{self.sle.posting_date}'
-					OR (
-						parent.posting_date = '{self.sle.posting_date}'
-						AND parent.posting_time <= '{self.sle.posting_time}'
-					)
-				)
-			GROUP BY
-				child.serial_no
-		"""
-
-		return frappe.db.sql(
-			f"""
-			SELECT
-				ledger.serial_no, ledger.incoming_rate, ledger.warehouse
-			FROM
-				`tabSerial and Batch Entry` AS ledger,
-				({subquery}) AS SubQuery
-			WHERE
-				ledger.name = SubQuery.name
-				AND ledger.serial_no = SubQuery.serial_no
-				AND ledger.warehouse = SubQuery.warehouse
-			GROUP BY
-				ledger.serial_no
-			Order By
-				ledger.creation
-		""",
-			as_dict=1,
+		query = (
+			frappe.qb.from_(bundle)
+			.inner_join(bundle_child)
+			.on(bundle.name == bundle_child.parent)
+			.select(
+				bundle.name,
+				bundle_child.serial_no,
+				(bundle_child.incoming_rate * bundle_child.qty).as_("incoming_rate"),
+			)
+			.where(
+				(bundle.is_cancelled == 0)
+				& (bundle.docstatus == 1)
+				& (bundle_child.serial_no.isin(serial_nos))
+				& (bundle.type_of_transaction != "Maintenance")
+				& (bundle.item_code == self.sle.item_code)
+				& (bundle_child.warehouse == self.sle.warehouse)
+			)
+			.orderby(bundle.posting_date, bundle.posting_time, bundle.creation)
 		)
 
+		# Important to exclude the current voucher
+		if self.sle.voucher_type == "Stock Reconciliation" and self.sle.voucher_no:
+			query = query.where(bundle.voucher_no != self.sle.voucher_no)
+
+		if self.sle.posting_date:
+			if self.sle.posting_time is None:
+				self.sle.posting_time = nowtime()
+
+			timestamp_condition = CombineDatetime(
+				bundle.posting_date, bundle.posting_time
+			) <= CombineDatetime(self.sle.posting_date, self.sle.posting_time)
+
+			query = query.where(timestamp_condition)
+
+		return query.run(as_dict=True)
+
 	def get_serial_nos(self):
 		if self.sle.get("serial_nos"):
 			return self.sle.serial_nos
@@ -422,7 +420,7 @@
 		if self.sle.posting_date and self.sle.posting_time:
 			timestamp_condition = CombineDatetime(
 				parent.posting_date, parent.posting_time
-			) < CombineDatetime(self.sle.posting_date, self.sle.posting_time)
+			) <= CombineDatetime(self.sle.posting_date, self.sle.posting_time)
 
 		query = (
 			frappe.qb.from_(parent)
@@ -444,8 +442,9 @@
 			.groupby(child.batch_no)
 		)
 
-		if self.sle.serial_and_batch_bundle:
-			query = query.where(child.parent != self.sle.serial_and_batch_bundle)
+		# Important to exclude the current voucher
+		if self.sle.voucher_no:
+			query = query.where(parent.voucher_no != self.sle.voucher_no)
 
 		if timestamp_condition:
 			query = query.where(timestamp_condition)
@@ -478,11 +477,11 @@
 		return get_batch_nos(self.sle.serial_and_batch_bundle)
 
 	def set_stock_value_difference(self):
-		if not self.sle.serial_and_batch_bundle:
-			return
-
 		self.stock_value_change = 0
 		for batch_no, ledger in self.batch_nos.items():
+			if not self.available_qty[batch_no]:
+				continue
+
 			self.batch_avg_rate[batch_no] = (
 				self.stock_value_differece[batch_no] / self.available_qty[batch_no]
 			)
@@ -507,8 +506,18 @@
 			self.wh_data.valuation_rate = self.wh_data.stock_value / self.wh_data.qty_after_transaction
 
 	def get_incoming_rate(self):
+		if not self.sle.actual_qty:
+			self.sle.actual_qty = self.get_actual_qty()
+
 		return abs(flt(self.stock_value_change) / flt(self.sle.actual_qty))
 
+	def get_actual_qty(self):
+		total_qty = 0.0
+		for batch_no in self.available_qty:
+			total_qty += self.available_qty[batch_no]
+
+		return total_qty
+
 
 def get_batch_nos(serial_and_batch_bundle):
 	entries = frappe.get_all(
@@ -635,8 +644,9 @@
 		id = self.serial_and_batch_bundle
 		package = frappe.get_doc("Serial and Batch Bundle", id)
 		new_package = frappe.copy_doc(package)
+		new_package.docstatus = 0
 		new_package.type_of_transaction = self.type_of_transaction
-		new_package.returned_against = self.returned_against
+		new_package.returned_against = self.get("returned_against")
 		new_package.save()
 
 		self.serial_and_batch_bundle = new_package.name
@@ -650,7 +660,7 @@
 
 		if self.type_of_transaction == "Outward":
 			self.set_auto_serial_batch_entries_for_outward()
-		elif self.type_of_transaction == "Inward" and not self.get("batches"):
+		elif self.type_of_transaction == "Inward":
 			self.set_auto_serial_batch_entries_for_inward()
 
 		self.set_serial_batch_entries(doc)
@@ -670,7 +680,7 @@
 			{
 				"item_code": self.item_code,
 				"warehouse": self.warehouse,
-				"qty": abs(self.actual_qty),
+				"qty": abs(self.actual_qty) if self.actual_qty else 0,
 				"based_on": frappe.db.get_single_value("Stock Settings", "pick_serial_and_batch_based_on"),
 			}
 		)
@@ -681,6 +691,11 @@
 			self.batches = get_available_batches(kwargs)
 
 	def set_auto_serial_batch_entries_for_inward(self):
+		if (self.get("batches") and self.has_batch_no) or (
+			self.get("serial_nos") and self.has_serial_no
+		):
+			return
+
 		self.batch_no = None
 		if self.has_batch_no:
 			self.batch_no = self.create_batch()
@@ -746,6 +761,10 @@
 		sr_nos = []
 		serial_nos_details = []
 
+		if not self.serial_no_series:
+			msg = f"Please set Serial No Series in the item {self.item_code} or create Serial and Batch Bundle manually."
+			frappe.throw(_(msg))
+
 		for i in range(abs(cint(self.actual_qty))):
 			serial_no = make_autoname(self.serial_no_series, "Serial No")
 			sr_nos.append(serial_no)
diff --git a/erpnext/stock/stock_ledger.py b/erpnext/stock/stock_ledger.py
index aefc692..fdc1ffc 100644
--- a/erpnext/stock/stock_ledger.py
+++ b/erpnext/stock/stock_ledger.py
@@ -27,7 +27,6 @@
 from erpnext.stock.doctype.stock_reservation_entry.stock_reservation_entry import (
 	get_sre_reserved_qty_for_item_and_warehouse as get_reserved_stock,
 )
-from erpnext.stock.serial_batch_bundle import BatchNoValuation, SerialNoValuation
 from erpnext.stock.utils import (
 	get_incoming_outgoing_rate_for_cancel,
 	get_or_make_bin,
@@ -692,22 +691,7 @@
 			sle.outgoing_rate = get_incoming_rate_for_inter_company_transfer(sle)
 
 		if sle.serial_and_batch_bundle:
-			if frappe.get_cached_value("Item", sle.item_code, "has_serial_no"):
-				SerialNoValuation(
-					sle=sle,
-					sle_self=self,
-					wh_data=self.wh_data,
-					warehouse=sle.warehouse,
-					item_code=sle.item_code,
-				)
-			else:
-				BatchNoValuation(
-					sle=sle,
-					sle_self=self,
-					wh_data=self.wh_data,
-					warehouse=sle.warehouse,
-					item_code=sle.item_code,
-				)
+			self.calculate_valuation_for_serial_batch_bundle(sle)
 		else:
 			if sle.voucher_type == "Stock Reconciliation" and not sle.batch_no:
 				# assert
@@ -759,6 +743,18 @@
 		elif current_qty == 0:
 			sle.is_cancelled = 1
 
+	def calculate_valuation_for_serial_batch_bundle(self, sle):
+		doc = frappe.get_cached_doc("Serial and Batch Bundle", sle.serial_and_batch_bundle)
+
+		doc.set_incoming_rate(save=True)
+		doc.calculate_qty_and_amount(save=True)
+
+		self.wh_data.stock_value = round_off_if_near_zero(self.wh_data.stock_value + doc.total_amount)
+
+		self.wh_data.qty_after_transaction += doc.total_qty
+		if self.wh_data.qty_after_transaction:
+			self.wh_data.valuation_rate = self.wh_data.stock_value / self.wh_data.qty_after_transaction
+
 	def validate_negative_stock(self, sle):
 		"""
 		validate negative stock for entries current datetime onwards
@@ -1425,6 +1421,8 @@
 	serial_and_batch_bundle=None,
 ):
 
+	from erpnext.stock.serial_batch_bundle import BatchNoValuation
+
 	if not company:
 		company = frappe.get_cached_value("Warehouse", warehouse, "company")
 
diff --git a/erpnext/stock/utils.py b/erpnext/stock/utils.py
index 8d1ec54..402f998 100644
--- a/erpnext/stock/utils.py
+++ b/erpnext/stock/utils.py
@@ -262,7 +262,7 @@
 	if isinstance(args, dict):
 		args = frappe._dict(args)
 
-	if item_details.has_serial_no and args.get("serial_and_batch_bundle"):
+	if item_details and item_details.has_serial_no and args.get("serial_and_batch_bundle"):
 		args.actual_qty = args.qty
 		sn_obj = SerialNoValuation(
 			sle=args,
@@ -272,7 +272,7 @@
 
 		in_rate = sn_obj.get_incoming_rate()
 
-	elif item_details.has_batch_no and args.get("serial_and_batch_bundle"):
+	elif item_details and item_details.has_batch_no and args.get("serial_and_batch_bundle"):
 		args.actual_qty = args.qty
 		batch_obj = BatchNoValuation(
 			sle=args,
@@ -307,7 +307,6 @@
 			currency=erpnext.get_company_currency(args.get("company")),
 			company=args.get("company"),
 			raise_error_if_no_rate=raise_error_if_no_rate,
-			batch_no=args.get("batch_no"),
 		)
 
 	return flt(in_rate)
@@ -455,17 +454,6 @@
 		row[key] = value
 
 
-def get_available_serial_nos(args):
-	return frappe.db.sql(
-		""" SELECT name from `tabSerial No`
-		WHERE item_code = %(item_code)s and warehouse = %(warehouse)s
-		 and timestamp(purchase_date, purchase_time) <= timestamp(%(posting_date)s, %(posting_time)s)
-	""",
-		args,
-		as_dict=1,
-	)
-
-
 def add_additional_uom_columns(columns, result, include_uom, conversion_factors):
 	if not include_uom or not conversion_factors:
 		return