diff --git a/erpnext/controllers/status_updater.py b/erpnext/controllers/status_updater.py
index 1615e901350..2b14aa9f865 100644
--- a/erpnext/controllers/status_updater.py
+++ b/erpnext/controllers/status_updater.py
@@ -3,7 +3,7 @@
 
 from __future__ import unicode_literals
 import frappe
-from frappe.utils import flt, comma_or, nowdate, getdate
+from frappe.utils import flt, comma_or, nowdate, getdate, now
 from frappe import _
 from frappe.model.document import Document
 
@@ -307,10 +307,14 @@ class StatusUpdater(Document):
 				target.notify_update()
 
 	def _update_modified(self, args, update_modified):
-		args['update_modified'] = ''
-		if update_modified:
-			args['update_modified'] = ', modified = now(), modified_by = {0}'\
-				.format(frappe.db.escape(frappe.session.user))
+		if not update_modified:
+			args['update_modified'] = ''
+			return
+
+		args['update_modified'] = ', modified = {0}, modified_by = {1}'.format(
+			frappe.db.escape(now()),
+			frappe.db.escape(frappe.session.user)
+		)
 
 	def update_billing_status_for_zero_amount_refdoc(self, ref_dt):
 		ref_fieldname = frappe.scrub(ref_dt)