diff --git a/erpnext/accounts/doctype/pricing_rule/pricing_rule.py b/erpnext/accounts/doctype/pricing_rule/pricing_rule.py
index 23606cec53f..41faa2a509e 100644
--- a/erpnext/accounts/doctype/pricing_rule/pricing_rule.py
+++ b/erpnext/accounts/doctype/pricing_rule/pricing_rule.py
@@ -250,7 +250,8 @@ def get_pricing_rule_for_item(args, price_list_rate=0, doc=None, for_validate=Fa
 		"free_item_data": [],
 		"parent": args.parent,
 		"parenttype": args.parenttype,
-		"child_docname": args.get('child_docname')
+		"child_docname": args.get('child_docname'),
+		"price_list_rate": args.get('price_list_rate')
 	})
 
 	if args.ignore_pricing_rule or not args.item_code:
@@ -404,6 +405,7 @@ def remove_pricing_rule_for_item(pricing_rules, item_details, item_code=None):
 			if pricing_rule.rate_or_discount == 'Discount Percentage':
 				item_details.discount_percentage = 0.0
 				item_details.discount_amount = 0.0
+				item_details.rate = item_details.get('price_list_rate', 0)
 
 			if pricing_rule.rate_or_discount == 'Discount Amount':
 				item_details.discount_amount = 0.0
diff --git a/erpnext/public/js/controllers/transaction.js b/erpnext/public/js/controllers/transaction.js
index 3730f15078e..76de31770a5 100644
--- a/erpnext/public/js/controllers/transaction.js
+++ b/erpnext/public/js/controllers/transaction.js
@@ -1443,7 +1443,8 @@ erpnext.TransactionController = erpnext.taxes_and_totals.extend({
 						"item_code": d.item_code,
 						"pricing_rules": d.pricing_rules,
 						"parenttype": d.parenttype,
-						"parent": d.parent
+						"parent": d.parent,
+						"price_list_rate": d.price_list_rate
 					})
 				}
 			});