diff --git a/erpnext/accounts/doctype/pos_invoice/test_pos_invoice.py b/erpnext/accounts/doctype/pos_invoice/test_pos_invoice.py
index 3132fdd..9685d99 100644
--- a/erpnext/accounts/doctype/pos_invoice/test_pos_invoice.py
+++ b/erpnext/accounts/doctype/pos_invoice/test_pos_invoice.py
@@ -5,12 +5,18 @@
 import unittest
 
 import frappe
+from frappe import _
 
 from erpnext.accounts.doctype.pos_invoice.pos_invoice import make_sales_return
 from erpnext.accounts.doctype.pos_profile.test_pos_profile import make_pos_profile
 from erpnext.accounts.doctype.sales_invoice.test_sales_invoice import create_sales_invoice
 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.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.stock_entry_utils import make_stock_entry
 
 
@@ -249,7 +255,7 @@
 			expense_account="Cost of Goods Sold - _TC",
 		)
 
-		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)
 
 		pos = create_pos_invoice(
 			company="_Test Company",
@@ -260,11 +266,11 @@
 			expense_account="Cost of Goods Sold - _TC",
 			cost_center="Main - _TC",
 			item=se.get("items")[0].item_code,
+			serial_no=[serial_nos[0]],
 			rate=1000,
 			do_not_save=1,
 		)
 
-		pos.get("items")[0].serial_no = serial_nos[0]
 		pos.append(
 			"payments", {"mode_of_payment": "Cash", "account": "Cash - _TC", "amount": 1000, "default": 1}
 		)
@@ -276,7 +282,9 @@
 
 		pos_return.insert()
 		pos_return.submit()
-		self.assertEqual(pos_return.get("items")[0].serial_no, serial_nos[0])
+		self.assertEqual(
+			get_serial_nos_from_bundle(pos_return.get("items")[0].serial_and_batch_bundle)[0], serial_nos[0]
+		)
 
 	def test_partial_pos_returns(self):
 		from erpnext.stock.doctype.serial_no.serial_no import get_serial_nos
@@ -289,7 +297,7 @@
 			expense_account="Cost of Goods Sold - _TC",
 		)
 
-		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)
 
 		pos = create_pos_invoice(
 			company="_Test Company",
@@ -300,12 +308,12 @@
 			expense_account="Cost of Goods Sold - _TC",
 			cost_center="Main - _TC",
 			item=se.get("items")[0].item_code,
+			serial_no=serial_nos,
 			qty=2,
 			rate=1000,
 			do_not_save=1,
 		)
 
-		pos.get("items")[0].serial_no = serial_nos[0] + "\n" + serial_nos[1]
 		pos.append(
 			"payments", {"mode_of_payment": "Cash", "account": "Cash - _TC", "amount": 1000, "default": 1}
 		)
@@ -317,14 +325,27 @@
 
 		# partial return 1
 		pos_return1.get("items")[0].qty = -1
-		pos_return1.get("items")[0].serial_no = serial_nos[0]
+
+		bundle_id = frappe.get_doc(
+			"Serial and Batch Bundle", pos_return1.get("items")[0].serial_and_batch_bundle
+		)
+
+		bundle_id.remove(bundle_id.entries[1])
+		bundle_id.save()
+
+		bundle_id.load_from_db()
+
+		serial_no = bundle_id.entries[0].serial_no
+		self.assertEqual(serial_no, serial_nos[0])
+
 		pos_return1.insert()
 		pos_return1.submit()
 
 		# partial return 2
 		pos_return2 = make_sales_return(pos.name)
 		self.assertEqual(pos_return2.get("items")[0].qty, -1)
-		self.assertEqual(pos_return2.get("items")[0].serial_no, serial_nos[1])
+		serial_no = get_serial_nos_from_bundle(pos_return2.get("items")[0].serial_and_batch_bundle)[0]
+		self.assertEqual(serial_no, serial_nos[1])
 
 	def test_pos_change_amount(self):
 		pos = create_pos_invoice(
@@ -368,7 +389,7 @@
 			expense_account="Cost of Goods Sold - _TC",
 		)
 
-		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)
 
 		pos = create_pos_invoice(
 			company="_Test Company",
@@ -380,10 +401,10 @@
 			cost_center="Main - _TC",
 			item=se.get("items")[0].item_code,
 			rate=1000,
+			serial_no=[serial_nos[0]],
 			do_not_save=1,
 		)
 
-		pos.get("items")[0].serial_no = serial_nos[0]
 		pos.append(
 			"payments", {"mode_of_payment": "Bank Draft", "account": "_Test Bank - _TC", "amount": 1000}
 		)
@@ -401,10 +422,10 @@
 			cost_center="Main - _TC",
 			item=se.get("items")[0].item_code,
 			rate=1000,
+			serial_no=[serial_nos[0]],
 			do_not_save=1,
 		)
 
-		pos2.get("items")[0].serial_no = serial_nos[0]
 		pos2.append(
 			"payments", {"mode_of_payment": "Bank Draft", "account": "_Test Bank - _TC", "amount": 1000}
 		)
@@ -423,7 +444,7 @@
 			expense_account="Cost of Goods Sold - _TC",
 		)
 
-		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)
 
 		si = create_sales_invoice(
 			company="_Test Company",
@@ -435,11 +456,11 @@
 			cost_center="Main - _TC",
 			item=se.get("items")[0].item_code,
 			rate=1000,
+			update_stock=1,
+			serial_no=[serial_nos[0]],
 			do_not_save=1,
 		)
 
-		si.get("items")[0].serial_no = serial_nos[0]
-		si.update_stock = 1
 		si.insert()
 		si.submit()
 
@@ -453,10 +474,10 @@
 			cost_center="Main - _TC",
 			item=se.get("items")[0].item_code,
 			rate=1000,
+			serial_no=[serial_nos[0]],
 			do_not_save=1,
 		)
 
-		pos2.get("items")[0].serial_no = serial_nos[0]
 		pos2.append(
 			"payments", {"mode_of_payment": "Bank Draft", "account": "_Test Bank - _TC", "amount": 1000}
 		)
@@ -473,7 +494,7 @@
 			cost_center="Main - _TC",
 			expense_account="Cost of Goods Sold - _TC",
 		)
-		serial_nos = se.get("items")[0].serial_no + "wrong"
+		serial_nos = get_serial_nos_from_bundle(se.get("items")[0].serial_and_batch_bundle)[0] + "wrong"
 
 		pos = create_pos_invoice(
 			company="_Test Company",
@@ -486,14 +507,13 @@
 			item=se.get("items")[0].item_code,
 			rate=1000,
 			qty=2,
+			serial_nos=[serial_nos],
 			do_not_save=1,
 		)
 
 		pos.get("items")[0].has_serial_no = 1
-		pos.get("items")[0].serial_no = serial_nos
-		pos.insert()
 
-		self.assertRaises(frappe.ValidationError, pos.submit)
+		self.assertRaises(frappe.ValidationError, pos.insert)
 
 	def test_value_error_on_serial_no_validation(self):
 		from erpnext.stock.doctype.stock_entry.test_stock_entry import make_serialized_item
@@ -504,7 +524,7 @@
 			cost_center="Main - _TC",
 			expense_account="Cost of Goods Sold - _TC",
 		)
-		serial_nos = se.get("items")[0].serial_no
+		serial_nos = get_serial_nos_from_bundle(se.get("items")[0].serial_and_batch_bundle)
 
 		# make a pos invoice
 		pos = create_pos_invoice(
@@ -517,11 +537,11 @@
 			cost_center="Main - _TC",
 			item=se.get("items")[0].item_code,
 			rate=1000,
+			serial_no=[serial_nos[0]],
 			qty=1,
 			do_not_save=1,
 		)
 		pos.get("items")[0].has_serial_no = 1
-		pos.get("items")[0].serial_no = serial_nos.split("\n")[0]
 		pos.set("payments", [])
 		pos.append(
 			"payments", {"mode_of_payment": "Cash", "account": "Cash - _TC", "amount": 1000, "default": 1}
@@ -547,12 +567,12 @@
 			cost_center="Main - _TC",
 			item=se.get("items")[0].item_code,
 			rate=1000,
+			serial_no=[serial_nos[0]],
 			qty=1,
 			do_not_save=1,
 		)
 
 		pos2.get("items")[0].has_serial_no = 1
-		pos2.get("items")[0].serial_no = serial_nos.split("\n")[0]
 		# Value error should not be triggered on validation
 		pos2.save()
 
@@ -748,16 +768,16 @@
 		self.assertEqual(rounded_total, 400)
 
 	def test_pos_batch_item_qty_validation(self):
+		from erpnext.stock.doctype.serial_and_batch_bundle.serial_and_batch_bundle import (
+			BatchNegativeStockError,
+		)
 		from erpnext.stock.doctype.stock_reconciliation.test_stock_reconciliation import (
 			create_batch_item_with_batch,
 		)
+		from erpnext.stock.serial_batch_bundle import SerialBatchCreation
 
 		create_batch_item_with_batch("_BATCH ITEM", "TestBatch 01")
 		item = frappe.get_doc("Item", "_BATCH ITEM")
-		batch = frappe.get_doc("Batch", "TestBatch 01")
-		batch.submit()
-		item.batch_no = "TestBatch 01"
-		item.save()
 
 		se = make_stock_entry(
 			target="_Test Warehouse - _TC",
@@ -767,16 +787,28 @@
 			batch_no="TestBatch 01",
 		)
 
-		pos_inv1 = create_pos_invoice(item=item.name, rate=300, qty=1, do_not_submit=1)
-		pos_inv1.items[0].batch_no = "TestBatch 01"
+		pos_inv1 = create_pos_invoice(
+			item=item.name, rate=300, qty=1, do_not_submit=1, batch_no="TestBatch 01"
+		)
 		pos_inv1.save()
 		pos_inv1.submit()
 
 		pos_inv2 = create_pos_invoice(item=item.name, rate=300, qty=2, do_not_submit=1)
-		pos_inv2.items[0].batch_no = "TestBatch 01"
-		pos_inv2.save()
 
-		self.assertRaises(frappe.ValidationError, pos_inv2.submit)
+		sn_doc = SerialBatchCreation(
+			{
+				"item_code": item.name,
+				"warehouse": pos_inv2.items[0].warehouse,
+				"voucher_type": "Delivery Note",
+				"qty": 2,
+				"avg_rate": 300,
+				"batches": frappe._dict({"TestBatch 01": 2}),
+				"type_of_transaction": "Outward",
+				"company": pos_inv2.company,
+			}
+		)
+
+		self.assertRaises(BatchNegativeStockError, sn_doc.make_serial_and_batch_bundle)
 
 		# teardown
 		pos_inv1.reload()
@@ -785,9 +817,6 @@
 		pos_inv2.reload()
 		pos_inv2.delete()
 		se.cancel()
-		batch.reload()
-		batch.cancel()
-		batch.delete()
 
 	def test_ignore_pricing_rule(self):
 		from erpnext.accounts.doctype.pricing_rule.test_pricing_rule import make_pricing_rule
@@ -838,18 +867,18 @@
 		frappe.db.savepoint("before_test_delivered_serial_no_case")
 		try:
 			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", serial_no=serial_no)
+			dn = create_delivery_note(item_code="_Test Serialized Item With Series", serial_no=[serial_no])
+			delivered_serial_no = get_serial_nos_from_bundle(dn.get("items")[0].serial_and_batch_bundle)[0]
 
-			delivery_document_no = frappe.db.get_value("Serial No", serial_no, "delivery_document_no")
-			self.assertEquals(delivery_document_no, dn.name)
+			self.assertEqual(serial_no, delivered_serial_no)
 
 			init_user_and_profile()
 
 			pos_inv = create_pos_invoice(
 				item_code="_Test Serialized Item With Series",
-				serial_no=serial_no,
+				serial_no=[serial_no],
 				qty=1,
 				rate=100,
 				do_not_submit=True,
@@ -861,42 +890,6 @@
 			frappe.db.rollback(save_point="before_test_delivered_serial_no_case")
 			frappe.set_user("Administrator")
 
-	def test_returned_serial_no_case(self):
-		from erpnext.accounts.doctype.pos_invoice_merge_log.test_pos_invoice_merge_log import (
-			init_user_and_profile,
-		)
-		from erpnext.stock.doctype.serial_no.serial_no import get_pos_reserved_serial_nos
-		from erpnext.stock.doctype.serial_no.test_serial_no import get_serial_nos
-		from erpnext.stock.doctype.stock_entry.test_stock_entry import make_serialized_item
-
-		frappe.db.savepoint("before_test_returned_serial_no_case")
-		try:
-			se = make_serialized_item()
-			serial_no = get_serial_nos(se.get("items")[0].serial_no)[0]
-
-			init_user_and_profile()
-
-			pos_inv = create_pos_invoice(
-				item_code="_Test Serialized Item With Series",
-				serial_no=serial_no,
-				qty=1,
-				rate=100,
-			)
-
-			pos_return = make_sales_return(pos_inv.name)
-			pos_return.flags.ignore_validate = True
-			pos_return.insert()
-			pos_return.submit()
-
-			pos_reserved_serial_nos = get_pos_reserved_serial_nos(
-				{"item_code": "_Test Serialized Item With Series", "warehouse": "_Test Warehouse - _TC"}
-			)
-			self.assertTrue(serial_no not in pos_reserved_serial_nos)
-
-		finally:
-			frappe.db.rollback(save_point="before_test_returned_serial_no_case")
-			frappe.set_user("Administrator")
-
 
 def create_pos_invoice(**args):
 	args = frappe._dict(args)
@@ -926,6 +919,40 @@
 
 	pos_inv.set_missing_values()
 
+	bundle_id = None
+	if args.get("batch_no") or args.get("serial_no"):
+		type_of_transaction = args.type_of_transaction or "Outward"
+
+		if pos_inv.is_return:
+			type_of_transaction = "Inward"
+
+		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": pos_inv.posting_date,
+					"posting_time": pos_inv.posting_time,
+					"type_of_transaction": type_of_transaction,
+					"do_not_submit": True,
+				}
+			)
+		).name
+
+		if not bundle_id:
+			msg = f"Serial No {args.serial_no} not available for Item {args.item}"
+			frappe.throw(_(msg))
+
 	pos_inv.append(
 		"items",
 		{
@@ -936,8 +963,7 @@
 			"income_account": args.income_account or "Sales - _TC",
 			"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,
+			"serial_and_batch_bundle": bundle_id,
 		},
 	)
 
diff --git a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
index e503a77..9fa7a86 100644
--- a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
+++ b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
@@ -3402,11 +3402,12 @@
 					"warehouse": args.warehouse or "_Test Warehouse - _TC",
 					"qty": qty,
 					"batches": batches,
-					"voucher_type": "Purchase Invoice",
+					"voucher_type": "Sales Invoice",
 					"serial_nos": serial_nos,
 					"type_of_transaction": "Outward" if not args.is_return else "Inward",
 					"posting_date": si.posting_date or today(),
 					"posting_time": si.posting_time,
+					"do_not_submit": True,
 				}
 			)
 		).name
diff --git a/erpnext/controllers/sales_and_purchase_return.py b/erpnext/controllers/sales_and_purchase_return.py
index ef5898a..34e3b13 100644
--- a/erpnext/controllers/sales_and_purchase_return.py
+++ b/erpnext/controllers/sales_and_purchase_return.py
@@ -393,8 +393,15 @@
 		from erpnext.stock.serial_batch_bundle import SerialBatchCreation
 
 		target_doc.qty = -1 * source_doc.qty
+		item_details = frappe.get_cached_value(
+			"Item", source_doc.item_code, ["has_batch_no", "has_serial_no"], as_dict=1
+		)
 
+		returned_serial_nos = []
 		if source_doc.get("serial_and_batch_bundle"):
+			if item_details.has_serial_no:
+				returned_serial_nos = get_returned_serial_nos(source_doc, source_parent)
+
 			type_of_transaction = "Inward"
 			if (
 				frappe.db.get_value(
@@ -410,6 +417,7 @@
 					"serial_and_batch_bundle": source_doc.serial_and_batch_bundle,
 					"returned_against": source_doc.name,
 					"item_code": source_doc.item_code,
+					"returned_serial_nos": returned_serial_nos,
 				}
 			)
 
@@ -418,6 +426,11 @@
 				target_doc.serial_and_batch_bundle = cls_obj.serial_and_batch_bundle
 
 		if source_doc.get("rejected_serial_and_batch_bundle"):
+			if item_details.has_serial_no:
+				returned_serial_nos = get_returned_serial_nos(
+					source_doc, source_parent, serial_no_field="rejected_serial_and_batch_bundle"
+				)
+
 			type_of_transaction = "Inward"
 			if (
 				frappe.db.get_value(
@@ -433,6 +446,7 @@
 					"serial_and_batch_bundle": source_doc.rejected_serial_and_batch_bundle,
 					"returned_against": source_doc.name,
 					"item_code": source_doc.item_code,
+					"returned_serial_nos": returned_serial_nos,
 				}
 			)
 
@@ -649,8 +663,11 @@
 	return filters
 
 
-def get_returned_serial_nos(child_doc, parent_doc, serial_no_field="serial_no"):
-	from erpnext.stock.doctype.serial_no.serial_no import get_serial_nos
+def get_returned_serial_nos(child_doc, parent_doc, serial_no_field=None):
+	from erpnext.stock.serial_batch_bundle import get_serial_nos
+
+	if not serial_no_field:
+		serial_no_field = "serial_and_batch_bundle"
 
 	return_ref_field = frappe.scrub(child_doc.doctype)
 	if child_doc.doctype == "Delivery Note Item":
@@ -667,7 +684,10 @@
 		[parent_doc.doctype, "docstatus", "=", 1],
 	]
 
+	ids = []
 	for row in frappe.get_all(parent_doc.doctype, fields=fields, filters=filters):
-		serial_nos.extend(get_serial_nos(row.get(serial_no_field)))
+		ids.append(row.get("serial_and_batch_bundle"))
+
+	serial_nos.extend(get_serial_nos(ids))
 
 	return serial_nos
diff --git a/erpnext/manufacturing/doctype/work_order/test_work_order.py b/erpnext/manufacturing/doctype/work_order/test_work_order.py
index bb53c8c..49ce6b9 100644
--- a/erpnext/manufacturing/doctype/work_order/test_work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/test_work_order.py
@@ -22,6 +22,11 @@
 )
 from erpnext.selling.doctype.sales_order.test_sales_order import make_sales_order
 from erpnext.stock.doctype.item.test_item import create_item, make_item
+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_entry import test_stock_entry
 from erpnext.stock.doctype.warehouse.test_warehouse import create_warehouse
@@ -672,8 +677,11 @@
 			if row.is_finished_item:
 				self.assertEqual(row.item_code, fg_item)
 				self.assertEqual(row.qty, 10)
-				self.assertTrue(row.batch_no in batches)
-				batches.remove(row.batch_no)
+
+				bundle_id = frappe.get_doc("Serial and Batch Bundle", row.serial_and_batch_bundle)
+				for bundle_row in bundle_id.get("entries"):
+					self.assertTrue(bundle_row.batch_no in batches)
+					batches.remove(bundle_row.batch_no)
 
 		ste1.submit()
 
@@ -682,8 +690,12 @@
 		for row in ste1.get("items"):
 			if row.is_finished_item:
 				self.assertEqual(row.item_code, fg_item)
-				self.assertEqual(row.qty, 10)
-				remaining_batches.append(row.batch_no)
+				self.assertEqual(row.qty, 20)
+
+				bundle_id = frappe.get_doc("Serial and Batch Bundle", row.serial_and_batch_bundle)
+				for bundle_row in bundle_id.get("entries"):
+					self.assertTrue(bundle_row.batch_no in batches)
+					remaining_batches.append(bundle_row.batch_no)
 
 		self.assertEqual(sorted(remaining_batches), sorted(batches))
 
@@ -1168,18 +1180,28 @@
 
 		try:
 			wo_order = make_wo_order_test_record(item=fg_item, qty=2, skip_transfer=True)
-			serial_nos = wo_order.serial_no
+			serial_nos = self.get_serial_nos_for_fg(wo_order.name)
+
 			stock_entry = frappe.get_doc(make_stock_entry(wo_order.name, "Manufacture", 10))
 			stock_entry.set_work_order_details()
 			stock_entry.set_serial_no_batch_for_finished_good()
 			for row in stock_entry.items:
 				if row.item_code == fg_item:
-					self.assertTrue(row.serial_no)
-					self.assertEqual(sorted(get_serial_nos(row.serial_no)), sorted(get_serial_nos(serial_nos)))
+					self.assertTrue(row.serial_and_batch_bundle)
+					self.assertEqual(
+						sorted(get_serial_nos_from_bundle(row.serial_and_batch_bundle)), sorted(serial_nos)
+					)
 
 		except frappe.MandatoryError:
 			self.fail("Batch generation causing failing in Work Order")
 
+	def get_serial_nos_for_fg(self, work_order):
+		serial_nos = []
+		for row in frappe.get_all("Serial No", filters={"work_order": work_order}):
+			serial_nos.append(row.name)
+
+		return serial_nos
+
 	@change_settings(
 		"Manufacturing Settings",
 		{"backflush_raw_materials_based_on": "Material Transferred for Manufacture"},
@@ -1272,63 +1294,66 @@
 		fg_item = "Test FG Item with Batch Raw Materials"
 
 		ste_doc = test_stock_entry.make_stock_entry(
-			item_code=batch_item, target="Stores - _TC", qty=2, basic_rate=100, do_not_save=True
-		)
-
-		ste_doc.append(
-			"items",
-			{
-				"item_code": batch_item,
-				"item_name": batch_item,
-				"description": batch_item,
-				"basic_rate": 100,
-				"t_warehouse": "Stores - _TC",
-				"qty": 2,
-				"uom": "Nos",
-				"stock_uom": "Nos",
-				"conversion_factor": 1,
-			},
+			item_code=batch_item, target="Stores - _TC", qty=4, basic_rate=100, do_not_save=True
 		)
 
 		# Inward raw materials in Stores warehouse
 		ste_doc.insert()
 		ste_doc.submit()
+		ste_doc.load_from_db()
 
-		batch_list = sorted([row.batch_no for row in ste_doc.items])
+		batch_no = get_batch_from_bundle(ste_doc.items[0].serial_and_batch_bundle)
 
 		wo_doc = make_wo_order_test_record(production_item=fg_item, qty=4)
 		transferred_ste_doc = frappe.get_doc(
 			make_stock_entry(wo_doc.name, "Material Transfer for Manufacture", 4)
 		)
 
-		transferred_ste_doc.items[0].qty = 2
-		transferred_ste_doc.items[0].batch_no = batch_list[0]
+		transferred_ste_doc.items[0].qty = 4
+		transferred_ste_doc.items[0].serial_and_batch_bundle = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": batch_item,
+					"warehouse": "Stores - _TC",
+					"company": transferred_ste_doc.company,
+					"qty": 4,
+					"voucher_type": "Stock Entry",
+					"batches": frappe._dict({batch_no: 4}),
+					"posting_date": transferred_ste_doc.posting_date,
+					"posting_time": transferred_ste_doc.posting_time,
+					"type_of_transaction": "Outward",
+					"do_not_submit": True,
+				}
+			)
+		).name
 
-		new_row = copy.deepcopy(transferred_ste_doc.items[0])
-		new_row.name = ""
-		new_row.batch_no = batch_list[1]
-
-		# Transferred two batches from Stores to WIP Warehouse
-		transferred_ste_doc.append("items", new_row)
 		transferred_ste_doc.submit()
+		transferred_ste_doc.load_from_db()
 
 		# First Manufacture stock entry
 		manufacture_ste_doc1 = frappe.get_doc(make_stock_entry(wo_doc.name, "Manufacture", 1))
+		manufacture_ste_doc1.submit()
+		manufacture_ste_doc1.load_from_db()
 
 		# Batch no should be same as transferred Batch no
-		self.assertEqual(manufacture_ste_doc1.items[0].batch_no, batch_list[0])
+		self.assertEqual(
+			get_batch_from_bundle(manufacture_ste_doc1.items[0].serial_and_batch_bundle), batch_no
+		)
 		self.assertEqual(manufacture_ste_doc1.items[0].qty, 1)
 
-		manufacture_ste_doc1.submit()
-
 		# Second Manufacture stock entry
 		manufacture_ste_doc2 = frappe.get_doc(make_stock_entry(wo_doc.name, "Manufacture", 2))
+		manufacture_ste_doc2.submit()
+		manufacture_ste_doc2.load_from_db()
 
-		# Batch no should be same as transferred Batch no
-		self.assertEqual(manufacture_ste_doc2.items[0].batch_no, batch_list[0])
-		self.assertEqual(manufacture_ste_doc2.items[0].qty, 1)
-		self.assertEqual(manufacture_ste_doc2.items[1].batch_no, batch_list[1])
-		self.assertEqual(manufacture_ste_doc2.items[1].qty, 1)
+		self.assertTrue(manufacture_ste_doc2.items[0].serial_and_batch_bundle)
+		bundle_doc = frappe.get_doc(
+			"Serial and Batch Bundle", manufacture_ste_doc2.items[0].serial_and_batch_bundle
+		)
+
+		for d in bundle_doc.entries:
+			self.assertEqual(d.batch_no, batch_no)
+			self.assertEqual(abs(d.qty), 2)
 
 	def test_backflushed_serial_no_raw_materials_based_on_transferred(self):
 		frappe.db.set_value(
@@ -1386,76 +1411,79 @@
 		fg_item = "Test FG Item with Serial & Batch No Raw Materials"
 
 		ste_doc = test_stock_entry.make_stock_entry(
-			item_code=sn_batch_item, target="Stores - _TC", qty=2, basic_rate=100, do_not_save=True
-		)
-
-		ste_doc.append(
-			"items",
-			{
-				"item_code": sn_batch_item,
-				"item_name": sn_batch_item,
-				"description": sn_batch_item,
-				"basic_rate": 100,
-				"t_warehouse": "Stores - _TC",
-				"qty": 2,
-				"uom": "Nos",
-				"stock_uom": "Nos",
-				"conversion_factor": 1,
-			},
+			item_code=sn_batch_item, target="Stores - _TC", qty=4, basic_rate=100, do_not_save=True
 		)
 
 		# Inward raw materials in Stores warehouse
 		ste_doc.insert()
 		ste_doc.submit()
+		ste_doc.load_from_db()
 
-		batch_dict = {row.batch_no: get_serial_nos(row.serial_no) for row in ste_doc.items}
-		batches = list(batch_dict.keys())
+		serial_nos = []
+		for row in ste_doc.items:
+			bundle_doc = frappe.get_doc("Serial and Batch Bundle", row.serial_and_batch_bundle)
+
+			for d in bundle_doc.entries:
+				serial_nos.append(d.serial_no)
 
 		wo_doc = make_wo_order_test_record(production_item=fg_item, qty=4)
 		transferred_ste_doc = frappe.get_doc(
 			make_stock_entry(wo_doc.name, "Material Transfer for Manufacture", 4)
 		)
 
-		transferred_ste_doc.items[0].qty = 2
-		transferred_ste_doc.items[0].batch_no = batches[0]
-		transferred_ste_doc.items[0].serial_no = "\n".join(batch_dict.get(batches[0]))
+		transferred_ste_doc.items[0].qty = 4
+		transferred_ste_doc.items[0].serial_and_batch_bundle = make_serial_batch_bundle(
+			frappe._dict(
+				{
+					"item_code": transferred_ste_doc.get("items")[0].item_code,
+					"warehouse": transferred_ste_doc.get("items")[0].s_warehouse,
+					"company": transferred_ste_doc.company,
+					"qty": 4,
+					"type_of_transaction": "Outward",
+					"voucher_type": "Stock Entry",
+					"serial_nos": serial_nos,
+					"posting_date": transferred_ste_doc.posting_date,
+					"posting_time": transferred_ste_doc.posting_time,
+					"do_not_submit": True,
+				}
+			)
+		).name
 
-		new_row = copy.deepcopy(transferred_ste_doc.items[0])
-		new_row.name = ""
-		new_row.batch_no = batches[1]
-		new_row.serial_no = "\n".join(batch_dict.get(batches[1]))
-
-		# Transferred two batches from Stores to WIP Warehouse
-		transferred_ste_doc.append("items", new_row)
 		transferred_ste_doc.submit()
+		transferred_ste_doc.load_from_db()
 
 		# First Manufacture stock entry
 		manufacture_ste_doc1 = frappe.get_doc(make_stock_entry(wo_doc.name, "Manufacture", 1))
+		manufacture_ste_doc1.submit()
+		manufacture_ste_doc1.load_from_db()
 
 		# Batch no & Serial Nos should be same as transferred Batch no & Serial Nos
-		batch_no = manufacture_ste_doc1.items[0].batch_no
-		self.assertEqual(
-			get_serial_nos(manufacture_ste_doc1.items[0].serial_no)[0], batch_dict.get(batch_no)[0]
-		)
-		self.assertEqual(manufacture_ste_doc1.items[0].qty, 1)
+		bundle = manufacture_ste_doc1.items[0].serial_and_batch_bundle
+		self.assertTrue(bundle)
 
-		manufacture_ste_doc1.submit()
+		bundle_doc = frappe.get_doc("Serial and Batch Bundle", bundle)
+		for d in bundle_doc.entries:
+			self.assertTrue(d.serial_no)
+			self.assertTrue(d.batch_no)
+			batch_no = frappe.get_cached_value("Serial No", d.serial_no, "batch_no")
+			self.assertEqual(d.batch_no, batch_no)
+			serial_nos.remove(d.serial_no)
 
 		# Second Manufacture stock entry
-		manufacture_ste_doc2 = frappe.get_doc(make_stock_entry(wo_doc.name, "Manufacture", 2))
+		manufacture_ste_doc2 = frappe.get_doc(make_stock_entry(wo_doc.name, "Manufacture", 3))
+		manufacture_ste_doc2.submit()
+		manufacture_ste_doc2.load_from_db()
 
-		# Batch no & Serial Nos should be same as transferred Batch no & Serial Nos
-		batch_no = manufacture_ste_doc2.items[0].batch_no
-		self.assertEqual(
-			get_serial_nos(manufacture_ste_doc2.items[0].serial_no)[0], batch_dict.get(batch_no)[1]
-		)
-		self.assertEqual(manufacture_ste_doc2.items[0].qty, 1)
+		bundle = manufacture_ste_doc2.items[0].serial_and_batch_bundle
+		self.assertTrue(bundle)
 
-		batch_no = manufacture_ste_doc2.items[1].batch_no
-		self.assertEqual(
-			get_serial_nos(manufacture_ste_doc2.items[1].serial_no)[0], batch_dict.get(batch_no)[0]
-		)
-		self.assertEqual(manufacture_ste_doc2.items[1].qty, 1)
+		bundle_doc = frappe.get_doc("Serial and Batch Bundle", bundle)
+		for d in bundle_doc.entries:
+			self.assertTrue(d.serial_no)
+			self.assertTrue(d.batch_no)
+			serial_nos.remove(d.serial_no)
+
+		self.assertFalse(serial_nos)
 
 	def test_non_consumed_material_return_against_work_order(self):
 		frappe.db.set_value(
@@ -1490,27 +1518,35 @@
 		for row in ste_doc.items:
 			row.qty += 2
 			row.transfer_qty += 2
-			nste_doc = test_stock_entry.make_stock_entry(
+			test_stock_entry.make_stock_entry(
 				item_code=row.item_code, target="Stores - _TC", qty=row.qty, basic_rate=100
 			)
 
-			row.batch_no = nste_doc.items[0].batch_no
-			row.serial_no = nste_doc.items[0].serial_no
-
 		ste_doc.save()
 		ste_doc.submit()
 		ste_doc.load_from_db()
 
 		# Create a stock entry to manufacture the item
+		print("remove 2 qty from each item")
 		ste_doc = frappe.get_doc(make_stock_entry(wo_doc.name, "Manufacture", 5))
 		for row in ste_doc.items:
 			if row.s_warehouse and not row.t_warehouse:
 				row.qty -= 2
 				row.transfer_qty -= 2
 
-				if row.serial_no:
-					serial_nos = get_serial_nos(row.serial_no)
-					row.serial_no = "\n".join(serial_nos[0:5])
+			if not row.serial_and_batch_bundle:
+				continue
+
+			bundle_id = row.serial_and_batch_bundle
+			bundle_doc = frappe.get_doc("Serial and Batch Bundle", bundle_id)
+			if bundle_doc.has_serial_no:
+				bundle_doc.set("entries", bundle_doc.entries[0:5])
+			else:
+				for bundle_row in bundle_doc.entries:
+					bundle_row.qty += 2
+
+			bundle_doc.save()
+			bundle_doc.load_from_db()
 
 		ste_doc.save()
 		ste_doc.submit()
diff --git a/erpnext/manufacturing/doctype/work_order/work_order.py b/erpnext/manufacturing/doctype/work_order/work_order.py
index 5295139..3265b8f 100644
--- a/erpnext/manufacturing/doctype/work_order/work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/work_order.py
@@ -1364,10 +1364,10 @@
 
 
 def get_serial_nos_for_job_card(row, wo_doc):
-	if not wo_doc.serial_no:
+	if not wo_doc.has_serial_no:
 		return
 
-	serial_nos = get_serial_nos(wo_doc.serial_no)
+	serial_nos = get_serial_nos_for_work_order(wo_doc.name, wo_doc.production_item)
 	used_serial_nos = []
 	for d in frappe.get_all(
 		"Job Card",
@@ -1380,6 +1380,21 @@
 	row.serial_no = "\n".join(serial_nos[0 : cint(row.job_card_qty)])
 
 
+def get_serial_nos_for_work_order(work_order, production_item):
+	serial_nos = []
+	for d in frappe.get_all(
+		"Serial No",
+		fields=["name"],
+		filters={
+			"work_order": work_order,
+			"item_code": production_item,
+		},
+	):
+		serial_nos.append(d.name)
+
+	return serial_nos
+
+
 def validate_operation_data(row):
 	if row.get("qty") <= 0:
 		frappe.throw(
diff --git a/erpnext/selling/doctype/sales_order/test_sales_order.py b/erpnext/selling/doctype/sales_order/test_sales_order.py
index 8d1dd07..e58bc73 100644
--- a/erpnext/selling/doctype/sales_order/test_sales_order.py
+++ b/erpnext/selling/doctype/sales_order/test_sales_order.py
@@ -1254,112 +1254,6 @@
 			)
 			self.assertEqual(wo_qty[0][0], so_item_name.get(item))
 
-	def test_serial_no_based_delivery(self):
-		frappe.set_value("Stock Settings", None, "automatically_set_serial_nos_based_on_fifo", 1)
-		item = make_item(
-			"_Reserved_Serialized_Item",
-			{
-				"is_stock_item": 1,
-				"maintain_stock": 1,
-				"has_serial_no": 1,
-				"serial_no_series": "SI.####",
-				"valuation_rate": 500,
-				"item_defaults": [{"default_warehouse": "_Test Warehouse - _TC", "company": "_Test Company"}],
-			},
-		)
-		frappe.db.sql("""delete from `tabSerial No` where item_code=%s""", (item.item_code))
-		make_item(
-			"_Test Item A",
-			{
-				"maintain_stock": 1,
-				"valuation_rate": 100,
-				"item_defaults": [{"default_warehouse": "_Test Warehouse - _TC", "company": "_Test Company"}],
-			},
-		)
-		make_item(
-			"_Test Item B",
-			{
-				"maintain_stock": 1,
-				"valuation_rate": 200,
-				"item_defaults": [{"default_warehouse": "_Test Warehouse - _TC", "company": "_Test Company"}],
-			},
-		)
-		from erpnext.manufacturing.doctype.production_plan.test_production_plan import make_bom
-
-		make_bom(item=item.item_code, rate=1000, raw_materials=["_Test Item A", "_Test Item B"])
-
-		so = make_sales_order(
-			**{
-				"item_list": [
-					{
-						"item_code": item.item_code,
-						"ensure_delivery_based_on_produced_serial_no": 1,
-						"qty": 1,
-						"rate": 1000,
-					}
-				]
-			}
-		)
-		so.submit()
-		from erpnext.manufacturing.doctype.work_order.test_work_order import make_wo_order_test_record
-
-		work_order = make_wo_order_test_record(item=item.item_code, qty=1, do_not_save=True)
-		work_order.fg_warehouse = "_Test Warehouse - _TC"
-		work_order.sales_order = so.name
-		work_order.submit()
-		make_stock_entry(item_code=item.item_code, target="_Test Warehouse - _TC", qty=1)
-		item_serial_no = frappe.get_doc("Serial No", {"item_code": item.item_code})
-		from erpnext.manufacturing.doctype.work_order.work_order import (
-			make_stock_entry as make_production_stock_entry,
-		)
-
-		se = frappe.get_doc(make_production_stock_entry(work_order.name, "Manufacture", 1))
-		se.submit()
-		reserved_serial_no = se.get("items")[2].serial_no
-		serial_no_so = frappe.get_value("Serial No", reserved_serial_no, "sales_order")
-		self.assertEqual(serial_no_so, so.name)
-		dn = make_delivery_note(so.name)
-		dn.save()
-		self.assertEqual(reserved_serial_no, dn.get("items")[0].serial_no)
-		item_line = dn.get("items")[0]
-		item_line.serial_no = item_serial_no.name
-		item_line = dn.get("items")[0]
-		item_line.serial_no = reserved_serial_no
-		dn.submit()
-		dn.load_from_db()
-		dn.cancel()
-		si = make_sales_invoice(so.name)
-		si.update_stock = 1
-		si.save()
-		self.assertEqual(si.get("items")[0].serial_no, reserved_serial_no)
-		item_line = si.get("items")[0]
-		item_line.serial_no = item_serial_no.name
-		self.assertRaises(frappe.ValidationError, dn.submit)
-		item_line = si.get("items")[0]
-		item_line.serial_no = reserved_serial_no
-		self.assertTrue(si.submit)
-		si.submit()
-		si.load_from_db()
-		si.cancel()
-		si = make_sales_invoice(so.name)
-		si.update_stock = 0
-		si.submit()
-		from erpnext.accounts.doctype.sales_invoice.sales_invoice import (
-			make_delivery_note as make_delivery_note_from_invoice,
-		)
-
-		dn = make_delivery_note_from_invoice(si.name)
-		dn.save()
-		dn.submit()
-		self.assertEqual(dn.get("items")[0].serial_no, reserved_serial_no)
-		dn.load_from_db()
-		dn.cancel()
-		si.load_from_db()
-		si.cancel()
-		se.load_from_db()
-		se.cancel()
-		self.assertFalse(frappe.db.exists("Serial No", {"sales_order": so.name}))
-
 	def test_advance_payment_entry_unlink_against_sales_order(self):
 		from erpnext.accounts.doctype.payment_entry.test_payment_entry import get_payment_entry
 
diff --git a/erpnext/stock/deprecated_serial_batch.py b/erpnext/stock/deprecated_serial_batch.py
index ae1bf14..1e1d8fd 100644
--- a/erpnext/stock/deprecated_serial_batch.py
+++ b/erpnext/stock/deprecated_serial_batch.py
@@ -211,6 +211,7 @@
 				& (bundle_child.batch_no.isnotnull())
 				& (batch.use_batchwise_valuation == 0)
 				& (bundle.is_cancelled == 0)
+				& (bundle.type_of_transaction.isin(["Inward", "Outward"]))
 			)
 			.where(timestamp_condition)
 		)
diff --git a/erpnext/stock/doctype/delivery_note/test_delivery_note.py b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
index 099a96b..ff2d705 100644
--- a/erpnext/stock/doctype/delivery_note/test_delivery_note.py
+++ b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
@@ -512,6 +512,7 @@
 
 	def test_return_for_serialized_items(self):
 		se = make_serialized_item()
+
 		serial_no = [get_serial_nos_from_bundle(se.get("items")[0].serial_and_batch_bundle)[0]]
 
 		dn = create_delivery_note(
@@ -1215,6 +1216,9 @@
 	if args.get("batch_no") or args.get("serial_no"):
 		type_of_transaction = args.type_of_transaction or "Outward"
 
+		if dn.is_return:
+			type_of_transaction = "Inward"
+
 		qty = args.get("qty") or 1
 		qty *= -1 if type_of_transaction == "Outward" else 1
 		batches = {}
@@ -1233,6 +1237,7 @@
 					"posting_date": dn.posting_date,
 					"posting_time": dn.posting_time,
 					"type_of_transaction": type_of_transaction,
+					"do_not_submit": True,
 				}
 			)
 		).name
@@ -1257,6 +1262,9 @@
 		dn.insert()
 		if not args.do_not_submit:
 			dn.submit()
+
+		dn.load_from_db()
+
 	return dn
 
 
diff --git a/erpnext/stock/doctype/landed_cost_voucher/test_landed_cost_voucher.py b/erpnext/stock/doctype/landed_cost_voucher/test_landed_cost_voucher.py
index c67d633..03ff12c 100644
--- a/erpnext/stock/doctype/landed_cost_voucher/test_landed_cost_voucher.py
+++ b/erpnext/stock/doctype/landed_cost_voucher/test_landed_cost_voucher.py
@@ -4,7 +4,7 @@
 
 import frappe
 from frappe.tests.utils import FrappeTestCase
-from frappe.utils import add_days, add_to_date, flt, now
+from frappe.utils import add_days, add_to_date, flt, now, nowtime, today
 
 from erpnext.accounts.doctype.account.test_account import create_account, get_inventory_account
 from erpnext.accounts.doctype.purchase_invoice.test_purchase_invoice import make_purchase_invoice
@@ -15,6 +15,12 @@
 	get_gl_entries,
 	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.serial_batch_bundle import SerialNoValuation
 
 
 class TestLandedCostVoucher(FrappeTestCase):
@@ -297,9 +303,8 @@
 				self.assertEqual(expected_values[gle.account][1], gle.credit)
 
 	def test_landed_cost_voucher_for_serialized_item(self):
-		frappe.db.sql(
-			"delete from `tabSerial No` where name in ('SN001', 'SN002', 'SN003', 'SN004', 'SN005')"
-		)
+		frappe.db.set_value("Item", "_Test Serialized Item", "serial_no_series", "SNJJ.###")
+
 		pr = make_purchase_receipt(
 			company="_Test Company with perpetual inventory",
 			warehouse="Stores - TCP1",
@@ -310,17 +315,42 @@
 		)
 
 		pr.items[0].item_code = "_Test Serialized Item"
-		pr.items[0].serial_no = "SN001\nSN002\nSN003\nSN004\nSN005"
 		pr.submit()
+		pr.load_from_db()
 
-		serial_no_rate = frappe.db.get_value("Serial No", "SN001", "purchase_rate")
+		serial_no = get_serial_nos_from_bundle(pr.items[0].serial_and_batch_bundle)[0]
+
+		sn_obj = SerialNoValuation(
+			sle=frappe._dict(
+				{
+					"posting_date": today(),
+					"posting_time": nowtime(),
+					"item_code": "_Test Serialized Item",
+					"warehouse": "Stores - TCP1",
+					"serial_nos": [serial_no],
+				}
+			)
+		)
+
+		serial_no_rate = sn_obj.get_incoming_rate_of_serial_no(serial_no)
 
 		create_landed_cost_voucher("Purchase Receipt", pr.name, pr.company)
 
-		serial_no = frappe.db.get_value("Serial No", "SN001", ["warehouse", "purchase_rate"], as_dict=1)
+		sn_obj = SerialNoValuation(
+			sle=frappe._dict(
+				{
+					"posting_date": today(),
+					"posting_time": nowtime(),
+					"item_code": "_Test Serialized Item",
+					"warehouse": "Stores - TCP1",
+					"serial_nos": [serial_no],
+				}
+			)
+		)
 
-		self.assertEqual(serial_no.purchase_rate - serial_no_rate, 5.0)
-		self.assertEqual(serial_no.warehouse, "Stores - TCP1")
+		new_serial_no_rate = sn_obj.get_incoming_rate_of_serial_no(serial_no)
+
+		self.assertEqual(new_serial_no_rate - serial_no_rate, 5.0)
 
 	def test_serialized_lcv_delivered(self):
 		"""In some cases you'd want to deliver before you can know all the
@@ -337,6 +367,15 @@
 		item_code = "_Test Serialized Item"
 		warehouse = "Stores - TCP1"
 
+		if not frappe.db.exists("Serial No", serial_no):
+			frappe.get_doc(
+				{
+					"doctype": "Serial No",
+					"item_code": item_code,
+					"serial_no": serial_no,
+				}
+			).insert()
+
 		pr = make_purchase_receipt(
 			company="_Test Company with perpetual inventory",
 			warehouse=warehouse,
@@ -346,7 +385,19 @@
 			serial_no=[serial_no],
 		)
 
-		serial_no_rate = frappe.db.get_value("Serial No", serial_no, "purchase_rate")
+		sn_obj = SerialNoValuation(
+			sle=frappe._dict(
+				{
+					"posting_date": today(),
+					"posting_time": nowtime(),
+					"item_code": "_Test Serialized Item",
+					"warehouse": "Stores - TCP1",
+					"serial_nos": [serial_no],
+				}
+			)
+		)
+
+		serial_no_rate = sn_obj.get_incoming_rate_of_serial_no(serial_no)
 
 		# deliver it before creating LCV
 		dn = create_delivery_note(
@@ -362,14 +413,24 @@
 
 		charges = 10
 		create_landed_cost_voucher("Purchase Receipt", pr.name, pr.company, charges=charges)
-
 		new_purchase_rate = serial_no_rate + charges
 
-		serial_no = frappe.db.get_value(
-			"Serial No", serial_no, ["warehouse", "purchase_rate"], as_dict=1
+		sn_obj = SerialNoValuation(
+			sle=frappe._dict(
+				{
+					"posting_date": today(),
+					"posting_time": nowtime(),
+					"item_code": "_Test Serialized Item",
+					"warehouse": "Stores - TCP1",
+					"serial_nos": [serial_no],
+				}
+			)
 		)
 
-		self.assertEqual(serial_no.purchase_rate, new_purchase_rate)
+		new_serial_no_rate = sn_obj.get_incoming_rate_of_serial_no(serial_no)
+
+		# Since the serial no is already delivered the rate must be zero
+		self.assertFalse(new_serial_no_rate)
 
 		stock_value_difference = frappe.db.get_value(
 			"Stock Ledger Entry",
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 e113516..cfb03f0 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
@@ -52,9 +52,11 @@
 			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, "warehouse": self.warehouse})
-		)
+		kwargs = {"item_code": self.item_code, "warehouse": self.warehouse}
+		if self.voucher_type == "POS Invoice":
+			kwargs["ignore_voucher_no"] = self.voucher_no
+
+		available_serial_nos = get_available_serial_nos(frappe._dict(kwargs))
 
 		serial_no_warehouse = {}
 		for data in available_serial_nos:
@@ -149,12 +151,9 @@
 					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)
 
-			if self.has_batch_no:
-				d.stock_value_difference = flt(d.qty) * flt(d.incoming_rate)
-
+			d.stock_value_difference = flt(d.qty) * flt(d.incoming_rate)
 			if save:
 				d.db_set(
 					{"incoming_rate": d.incoming_rate, "stock_value_difference": d.stock_value_difference}
@@ -198,6 +197,9 @@
 		if self.voucher_type in ["Sales Invoice", "Delivery Note"]:
 			valuation_field = "incoming_rate"
 
+		if self.voucher_type == "POS Invoice":
+			valuation_field = "rate"
+
 		rate = row.get(valuation_field) if row else 0.0
 		precision = frappe.get_precision(self.child_table, valuation_field) or 2
 
@@ -325,6 +327,7 @@
 				& (parent.item_code == self.item_code)
 				& (parent.docstatus == 1)
 				& (parent.is_cancelled == 0)
+				& (parent.type_of_transaction.isin(["Inward", "Outward"]))
 			)
 			.where(timestamp_condition)
 		).run(as_dict=True)
@@ -830,6 +833,7 @@
 			["POS Invoice", "consolidated_invoice", "is", "not set"],
 			["POS Invoice", "docstatus", "=", 1],
 			["POS Invoice Item", "item_code", "=", kwargs.item_code],
+			["POS Invoice", "name", "!=", kwargs.ignore_voucher_no],
 		],
 	)
 
@@ -839,7 +843,10 @@
 		if pos_invoice.serial_and_batch_bundle
 	]
 
-	for d in get_serial_batch_ledgers(ids, docstatus=1, name=ids):
+	if not ids:
+		return []
+
+	for d in get_serial_batch_ledgers(kwargs.item_code, docstatus=1, name=ids):
 		ignore_serial_nos.append(d.serial_no)
 
 	# Will be deprecated in v16
@@ -1010,7 +1017,11 @@
 			bundle_table.posting_date,
 			bundle_table.posting_time,
 		)
-		.where((bundle_table.docstatus == 1) & (bundle_table.is_cancelled == 0))
+		.where(
+			(bundle_table.docstatus == 1)
+			& (bundle_table.is_cancelled == 0)
+			& (bundle_table.type_of_transaction.isin(["Inward", "Outward"]))
+		)
 	)
 
 	for key, val in kwargs.items():
diff --git a/erpnext/stock/doctype/serial_no/serial_no.json b/erpnext/stock/doctype/serial_no/serial_no.json
index 8dba698..ed1b0af 100644
--- a/erpnext/stock/doctype/serial_no/serial_no.json
+++ b/erpnext/stock/doctype/serial_no/serial_no.json
@@ -39,9 +39,7 @@
   "more_info",
   "company",
   "column_break_2cmm",
-  "work_order",
-  "section_break_fgyk",
-  "serial_no_details"
+  "work_order"
  ],
  "fields": [
   {
@@ -227,11 +225,6 @@
    "label": "More Information"
   },
   {
-   "fieldname": "serial_no_details",
-   "fieldtype": "Text Editor",
-   "label": "Serial No Details"
-  },
-  {
    "fieldname": "company",
    "fieldtype": "Link",
    "in_list_view": 1,
@@ -282,10 +275,6 @@
   {
    "fieldname": "column_break_2cmm",
    "fieldtype": "Column Break"
-  },
-  {
-   "fieldname": "section_break_fgyk",
-   "fieldtype": "Section Break"
   }
  ],
  "icon": "fa fa-barcode",
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index f0cf175..e686e58 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -2789,7 +2789,7 @@
 
 			if row.batch_nos:
 				for batch_no, qty in row.batch_nos.items():
-					item_data.batch_details[batch_no] -= qty
+					item_data.batch_details[batch_no] += qty
 
 			if row.serial_no:
 				for serial_no in get_serial_nos(row.serial_no):
diff --git a/erpnext/stock/doctype/stock_entry/test_stock_entry.py b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
index 083508e..08dcded 100644
--- a/erpnext/stock/doctype/stock_entry/test_stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
@@ -1803,6 +1803,8 @@
 	se.set_stock_entry_type()
 	se.insert()
 	se.submit()
+
+	se.load_from_db()
 	return se
 
 
diff --git a/erpnext/stock/serial_batch_bundle.py b/erpnext/stock/serial_batch_bundle.py
index 728394e..06fe0f1 100644
--- a/erpnext/stock/serial_batch_bundle.py
+++ b/erpnext/stock/serial_batch_bundle.py
@@ -257,6 +257,9 @@
 
 def get_serial_nos(serial_and_batch_bundle):
 	filters = {"parent": serial_and_batch_bundle}
+	if isinstance(serial_and_batch_bundle, list):
+		filters = {"parent": ("in", serial_and_batch_bundle)}
+
 	entries = frappe.get_all("Serial and Batch Entry", fields=["serial_no"], filters=filters)
 
 	return [d.serial_no for d in entries]
@@ -306,7 +309,7 @@
 				(bundle.is_cancelled == 0)
 				& (bundle.docstatus == 1)
 				& (bundle_child.serial_no.isin(serial_nos))
-				& (bundle.type_of_transaction != "Maintenance")
+				& (bundle.type_of_transaction.isin(["Inward", "Outward"]))
 				& (bundle.item_code == self.sle.item_code)
 				& (bundle_child.warehouse == self.sle.warehouse)
 			)
@@ -314,7 +317,7 @@
 		)
 
 		# Important to exclude the current voucher
-		if self.sle.voucher_type == "Stock Reconciliation" and self.sle.voucher_no:
+		if self.sle.voucher_no:
 			query = query.where(bundle.voucher_no != self.sle.voucher_no)
 
 		if self.sle.posting_date:
@@ -370,6 +373,9 @@
 	def get_incoming_rate(self):
 		return abs(flt(self.stock_value_change) / flt(self.sle.actual_qty))
 
+	def get_incoming_rate_of_serial_no(self, serial_no):
+		return self.serial_no_incoming_rate.get(serial_no, 0.0)
+
 
 def is_rejected(voucher_type, voucher_detail_no, warehouse):
 	if voucher_type in ["Purchase Receipt", "Purchase Invoice"]:
@@ -437,7 +443,7 @@
 				& (parent.item_code == self.sle.item_code)
 				& (parent.docstatus == 1)
 				& (parent.is_cancelled == 0)
-				& (parent.type_of_transaction != "Maintenance")
+				& (parent.type_of_transaction.isin(["Inward", "Outward"]))
 			)
 			.groupby(child.batch_no)
 		)
@@ -644,6 +650,10 @@
 		id = self.serial_and_batch_bundle
 		package = frappe.get_doc("Serial and Batch Bundle", id)
 		new_package = frappe.copy_doc(package)
+
+		if self.get("returned_serial_nos"):
+			self.remove_returned_serial_nos(new_package)
+
 		new_package.docstatus = 0
 		new_package.type_of_transaction = self.type_of_transaction
 		new_package.returned_against = self.get("returned_against")
@@ -651,6 +661,15 @@
 
 		self.serial_and_batch_bundle = new_package.name
 
+	def remove_returned_serial_nos(self, package):
+		remove_list = []
+		for d in package.entries:
+			if d.serial_no in self.returned_serial_nos:
+				remove_list.append(d)
+
+		for d in remove_list:
+			package.remove(d)
+
 	def make_serial_and_batch_bundle(self):
 		doc = frappe.new_doc("Serial and Batch Bundle")
 		valid_columns = doc.meta.get_valid_columns()
@@ -664,6 +683,9 @@
 			self.set_auto_serial_batch_entries_for_inward()
 
 		self.set_serial_batch_entries(doc)
+		if not doc.get("entries"):
+			return frappe._dict({})
+
 		doc.save()
 
 		if not hasattr(self, "do_not_submit") or not self.do_not_submit: