diff --git a/erpnext/controllers/stock_controller.py b/erpnext/controllers/stock_controller.py
index 916d9865662..aa09f0ca956 100644
--- a/erpnext/controllers/stock_controller.py
+++ b/erpnext/controllers/stock_controller.py
@@ -552,7 +552,7 @@ class StockController(AccountsController):
 		if is_rejected:
 			serial_nos = row.get("rejected_serial_no")
 			type_of_transaction = "Inward" if not self.is_return else "Outward"
-			qty = row.get("rejected_qty")
+			qty = row.get("rejected_qty") * row.get("conversion_factor", 1.0)
 			warehouse = row.get("rejected_warehouse")
 
 		if (