diff --git a/material_management/doctype/bin/bin.py b/material_management/doctype/bin/bin.py
index dfaf81a2359..ba8398aafe6 100644
--- a/material_management/doctype/bin/bin.py
+++ b/material_management/doctype/bin/bin.py
@@ -25,7 +25,7 @@ class DocType:
 	# -------------
 	# stock update
 	# -------------
-	def update_stock(self, actual_qty=0, reserved_qty=0, ordered_qty=0, indented_qty=0, planned_qty=0, dt=None, sle_id='', posting_time='', serial_no = ''):
+	def update_stock(self, actual_qty=0, reserved_qty=0, ordered_qty=0, indented_qty=0, planned_qty=0, dt=None, sle_id='', posting_time='', serial_no = '', is_cancelled = 'No'):
 
 		if not dt: dt = nowdate()
 		# update the stock values (for current quantities)
@@ -40,10 +40,10 @@ class DocType:
 
 		# update valuation for post dated entry
 		if actual_qty:
-			prev_sle = self.get_prev_sle(sle_id, dt, posting_time, serial_no)
+			prev_sle = self.get_prev_sle(dt, posting_time, sle_id)
 			cqty = flt(prev_sle.get('bin_aqat', 0))
 			# Block if actual qty becomes negative
-			if (flt(cqty) + flt(actual_qty)) < 0 and flt(actual_qty) < 0:
+			if (flt(cqty) + flt(actual_qty)) < 0 and flt(actual_qty) < 0 and is_cancelled == 'No':
 				msgprint('Not enough quantity (requested: %s, current: %s) for Item <b>%s</b> in Warehouse <b>%s</b> as on %s %s' % (flt(actual_qty), flt(cqty), self.doc.item_code, self.doc.warehouse, dt, posting_time), raise_exception = 1)
 
 			self.update_item_valuation(sle_id, dt, posting_time, serial_no, prev_sle)
@@ -57,6 +57,7 @@ class DocType:
 			select * from `tabStock Ledger Entry`
 			where item_code = %s
 			and warehouse = %s
+			and ifnull(is_cancelled, 'No') = 'No'
 			order by timestamp(posting_date, posting_time) asc, name asc
 			limit 1
 		""", (self.doc.item_code, self.doc.warehouse), as_dict=1)
@@ -66,7 +67,7 @@ class DocType:
 	# get previous stock ledger entry
 	# --------------------------------
 			
-	def get_prev_sle(self, sle_id, posting_date, posting_time, serial_no = ''):
+	def get_prev_sle(self, posting_date, posting_time, sle_id = ''):
 		# this function will only be called for a live entry
 		# for which the "name" will be the latest (even for the same timestamp)
 		# and even for a back-dated entry
@@ -84,6 +85,7 @@ class DocType:
 			where item_code = %s
 			and warehouse = %s
 			and name != %s
+			and ifnull(is_cancelled, 'No') = 'No'
 			and timestamp(posting_date, posting_time) <= timestamp(%s, %s)
 			order by timestamp(posting_date, posting_time) desc, name desc
 			limit 1
@@ -101,8 +103,8 @@ class DocType:
 		if cqty + s['actual_qty'] < 0 and s['is_cancelled'] != 'Yes':
 			msgprint(cqty)
 			msgprint(s['actual_qty'])
-			msgprint('Cannot complete this transaction because stock will become negative for Item <b>%s</b> in Warehouse <b>%s</b> on Posting Date <b>%s</b>' % \
-				(self.doc.item_code, self.doc.warehouse, s['posting_date']))
+			msgprint('Cannot complete this transaction because stock will become negative in future transaction for Item <b>%s</b> in Warehouse <b>%s</b> on <b>%s %s</b>' % \
+				(self.doc.item_code, self.doc.warehouse, s['posting_date'], s['posting_time']))
 			raise Exception
 
 	# ------------------------------------
@@ -148,14 +150,13 @@ class DocType:
 	# --------------------------
 	# get fifo inventory values
 	# --------------------------
-	def get_fifo_inventory_values(self, val_rate, in_rate, actual_qty, incoming_rate):
+	def get_fifo_inventory_values(self, in_rate, actual_qty):
 		# add batch to fcfs balance
 		if actual_qty > 0:
 			self.fcfs_bal.append([flt(actual_qty), flt(in_rate)])
-			val_rate = incoming_rate
+
 		# remove from fcfs balance
 		else:
-			fcfs_val = 0
 			withdraw = flt(abs(actual_qty))
 			while withdraw:
 				if not self.fcfs_bal:
@@ -163,21 +164,21 @@ class DocType:
 				
 				batch = self.fcfs_bal[0]
 			 
-				if batch[0] < withdraw:
-					# not enough in current batch, clear batch
+				if batch[0] <= withdraw:
+					# not enough or exactly same qty in current batch, clear batch
 					withdraw -= batch[0]
-					fcfs_val += (flt(batch[0]) * flt(batch[1]))
 					self.fcfs_bal.pop(0)
 				else:
 					# all from current batch
-					fcfs_val += (flt(withdraw) * flt(batch[1]))
 					batch[0] -= withdraw
 					withdraw = 0
-			val_rate = flt(fcfs_val) / flt(abs(actual_qty))
 
+		fcfs_val = sum([flt(d[0])*flt(d[1]) for d in self.fcfs_bal])
+		fcfs_qty = sum([flt(d[0]) for d in self.fcfs_bal])
+		val_rate = fcfs_qty and fcfs_val / fcfs_qty or 0
+		
 		return val_rate
 
-
 	# -------------------
 	# get valuation rate
 	# -------------------
@@ -187,7 +188,7 @@ class DocType:
 		elif val_method == 'Moving Average':
 			val_rate, stock_val = self.get_moving_average_inventory_values(val_rate, in_rate, opening_qty = cqty, actual_qty = s['actual_qty'], is_cancelled = s['is_cancelled'])
 		elif val_method == 'FIFO':
-			val_rate = self.get_fifo_inventory_values(val_rate, in_rate, actual_qty = s['actual_qty'], incoming_rate = s['incoming_rate'])
+			val_rate = self.get_fifo_inventory_values(in_rate, actual_qty = s['actual_qty'])
 		return val_rate, stock_val
 
 
@@ -198,8 +199,7 @@ class DocType:
 		if val_method == 'Moving Average' or serial_nos:
 			stock_val = flt(stock_val) * flt(cqty)
 		elif val_method == 'FIFO':
-			for d in self.fcfs_bal:
-				stock_val += (flt(d[0]) * flt(d[1]))
+			stock_val = sum([flt(d[0])*flt(d[1]) for d in self.fcfs_bal])
 		return stock_val
 
 	# ----------------------
@@ -227,19 +227,20 @@ class DocType:
 			from `tabStock Ledger Entry` 
 			where item_code = %s 
 			and warehouse = %s 
+			and ifnull(is_cancelled, 'No') = 'No'
 			and timestamp(posting_date, posting_time) > timestamp(%s, %s)
 			order by timestamp(posting_date, posting_time) asc, name asc""", \
 				(self.doc.item_code, self.doc.warehouse, posting_date, posting_time), as_dict = 1)
 
 		# if in live entry - update the values of the current sle
 		if sle_id:
-			sll = sql("select * from `tabStock Ledger Entry` where name=%s", sle_id, as_dict=1) + sll
+			sll = sql("select * from `tabStock Ledger Entry` where name=%s and ifnull(is_cancelled, 'No') = 'No'", sle_id, as_dict=1) + sll
 		for s in sll:
 			# block if stock level goes negative on any date
 			self.validate_negative_stock(cqty, s)
 
 			stock_val, in_rate = 0, s['incoming_rate'] # IN
-			serial_nos = "'"+"', '".join(cstr(s["serial_no"]).split('\n')) + "'"
+			serial_nos = s["serial_no"] and ("'"+"', '".join(cstr(s["serial_no"]).split('\n')) + "'") or ''
 
 			# Get valuation rate
 			val_rate, stock_val = self.get_valuation_rate(val_method, serial_nos, val_rate, in_rate, stock_val, cqty, s) 
@@ -249,7 +250,6 @@ class DocType:
 
 			# Stock Value upto the sle
 			stock_val = self.get_stock_value(val_method, cqty, stock_val, serial_nos) 
-
 			# update current sle --> will it be good to update incoming rate in sle for outgoing stock entry?????
 			sql("""update `tabStock Ledger Entry` 
 			set bin_aqat=%s, valuation_rate=%s, fcfs_stack=%s, stock_value=%s 
diff --git a/material_management/doctype/stock_entry/stock_entry.js b/material_management/doctype/stock_entry/stock_entry.js
index f202235f5d0..161e0945e5a 100644
--- a/material_management/doctype/stock_entry/stock_entry.js
+++ b/material_management/doctype/stock_entry/stock_entry.js
@@ -137,13 +137,14 @@ cur_frm.fields_dict['mtn_details'].grid.get_field('batch_no').get_query= functio
 
 cur_frm.cscript.item_code = function(doc, cdt, cdn) {
   var d = locals[cdt][cdn];
-  cal_back = function(r, rt){ /*cur_frm.cscript.calc_amount(doc)*/}
   // get values
   args = {
-  	item_code: d.item_code,
-  	warehouse: cstr(d.s_warehouse)
+  	'item_code'		: d.item_code,
+  	'warehouse'		: cstr(d.s_warehouse),
+  	'transfer_qty'	: d.transfer_qty,
+  	'serial_no'		: d.serial_no
   };
-  get_server_fields('get_item_details',JSON.stringify(args),'mtn_details',doc,cdt,cdn,1,cal_back);
+  get_server_fields('get_item_details',JSON.stringify(args),'mtn_details',doc,cdt,cdn,1);
 }
 
 //==================================================================================================================
diff --git a/material_management/doctype/stock_entry/stock_entry.py b/material_management/doctype/stock_entry/stock_entry.py
index 55cd1f09b35..b671781dcce 100644
--- a/material_management/doctype/stock_entry/stock_entry.py
+++ b/material_management/doctype/stock_entry/stock_entry.py
@@ -33,25 +33,25 @@ class DocType:
 	# get item details
 	# ----------------
 	def get_item_details(self, arg):
-		arg, bin, in_rate = eval(arg), None, 0
-		item = sql("select stock_uom, description, item_name from `tabItem` where name = %s and (ifnull(end_of_life,'')='' or end_of_life ='0000-00-00' or end_of_life >	now())", (arg['item_code']), as_dict = 1)
-		if not item:
-			if arg['item_code']: 
-				msgprint("Item is not active. You can restore it from Trash")
-			raise webnotes.ValidationError
+		arg, actual_qty, in_rate = eval(arg), 0, 0
+
+		item = sql("select stock_uom, description, item_name from `tabItem` where name = %s and (ifnull(end_of_life,'')='' or end_of_life ='0000-00-00' or end_of_life >	now())", (arg.get('item_code')), as_dict = 1)
+		if not item: 
+			msgprint("Item is not active", raise_exception=1)
+			
+		if arg.get('warehouse'):
+			actual_qty = self.get_as_on_stock(arg.get('item_code'), arg.get('warehouse'), self.doc.posting_date, self.doc.posting_time)
+			in_rate = self.get_incoming_rate(arg.get('item_code'), arg.get('warehouse'), self.doc.posting_date, self.doc.posting_time, arg.get('transfer_qty'), arg.get('serial_no')) or 0
 			
-		if arg['warehouse']:
-			bin = sql("select actual_qty from `tabBin` where item_code = %s and warehouse = %s", (arg['item_code'], arg['warehouse']), as_dict = 1)
-			in_rate = get_obj('Valuation Control').get_incoming_rate(self.doc.posting_date, self.doc.posting_time, arg['item_code'],arg['warehouse'])
 		ret = {
 			'uom'			      	: item and item[0]['stock_uom'] or '',
 			'stock_uom'			  	: item and item[0]['stock_uom'] or '',
 			'description'		  	: item and item[0]['description'] or '',
 			'item_name' 		  	: item and item[0]['item_name'] or '',
-			'actual_qty'		  	: bin and flt(bin[0]['actual_qty']) or 0,
+			'actual_qty'		  	: actual_qty,
 			'qty'					: 0,
 			'transfer_qty'			: 0,
-			'incoming_rate'	  		: flt(in_rate),
+			'incoming_rate'	  		: in_rate,
 			'conversion_factor'		: 1,
      		'batch_no'          	: ''
 		}
@@ -73,32 +73,42 @@ class DocType:
 		return str(ret)
 
 		
-	# get rate of FG item 
-	#---------------------------
-	def get_in_rate(self, pro_obj):
-		# calculate_cost for production item
-		get_obj('BOM Control').calculate_cost(pro_obj.doc.bom_no)
-		# return cost
-		return flt(get_obj('Bill Of Materials', pro_obj.doc.bom_no).doc.cost_as_per_mar)
-
-	# get current_stock
-	# ----------------
-	def get_current_stock(self, pro_obj = ''):
+	# get stock and incoming rate on posting date
+	# ---------------------------------------------
+	def get_stock_and_rate(self, bom_no = ''):
 		for d in getlist(self.doclist, 'mtn_details'):
-			d.s_warehouse = (self.doc.purpose != 'Production Order') and	self.doc.from_warehouse or cstr(d.s_warehouse)
-			d.t_warehouse = (self.doc.purpose != 'Production Order') and	self.doc.to_warehouse or cstr(d.t_warehouse)
+			# assign parent warehouse
+			d.s_warehouse = cstr(d.s_warehouse) or self.doc.purpose != 'Production Order' and self.doc.from_warehouse or ''
+			d.t_warehouse = cstr(d.t_warehouse) or self.doc.purpose != 'Production Order' and self.doc.to_warehouse or ''
 			
-			if d.s_warehouse:
-				bin = sql("select actual_qty from `tabBin` where item_code = %s and warehouse = %s", (d.item_code, d.s_warehouse), as_dict = 1)
-				d.actual_qty = bin and flt(bin[0]['actual_qty']) or 0
-			else: 
-				d.actual_qty = 0
-			if d.fg_item:
-				d.incoming_rate = pro_obj and self.get_in_rate(pro_obj) or ''
-			elif self.doc.purpose not in ['Material Receipt', 'Sales Return'] and not d.incoming_rate and d.s_warehouse:
-				d.incoming_rate = flt(get_obj('Valuation Control').get_incoming_rate(self.doc.posting_date, self.doc.posting_time, d.item_code, d.s_warehouse, d.transfer_qty, d.serial_no))
-			d.save()
+			# get current stock at source warehouse
+			d.actual_qty = d.s_warehouse and self.get_as_on_stock(d.item_code, d.s_warehouse, self.doc.posting_date, self.doc.posting_time) or 0
 
+			# get incoming rate
+			if not flt(d.incoming_rate):
+				d.incoming_rate = self.get_incoming_rate(d.item_code, d.s_warehouse, self.doc.posting_date, self.doc.posting_time, d.transfer_qty, d.serial_no, d.fg_item, bom_no)
+			
+	# Get stock qty on any date
+	# ---------------------------
+	def get_as_on_stock(self, item, wh, dt, tm):
+		bin = sql("select name from tabBin where item_code = %s and warehouse = %s", (item, wh))
+		bin_id = bin and bin[0][0] or ''
+		prev_sle = get_obj('Bin', bin_id).get_prev_sle(dt, tm)
+		qty = flt(prev_sle.get('bin_aqat', 0))
+		return qty
+
+	# Get incoming rate
+	# -------------------
+	def get_incoming_rate(self, item, wh, dt, tm, qty = 0, serial_no = '', fg_item = 'No', bom_no = ''):
+		in_rate = 0
+		if fg_item == 'Yes':
+			# re-calculate cost for production item from bom
+			get_obj('BOM Control').calculate_cost(bom_no)
+			in_rate = get_value('Bill Of Materials', bom_no, 'cost_as_per_mar')
+		elif wh:
+			in_rate = get_obj('Valuation Control').get_incoming_rate(dt, tm, item, wh, qty, serial_no)
+		
+		return in_rate
 
 	# makes dict of unique items with it's qty
 	#-----------------------------------------
@@ -242,7 +252,7 @@ class DocType:
 		self.validate_for_production_order(pro_obj)
 		self.validate_incoming_rate()
 		self.validate_warehouse(pro_obj)
-		self.get_current_stock(pro_obj)
+		self.get_current_stock(pro_obj.doc.bom_no)
 		self.calc_amount()
 		get_obj('Sales Common').validate_fiscal_year(self.doc.fiscal_year,self.doc.posting_date,'Posting Date')
 				
diff --git a/material_management/doctype/stock_ledger/stock_ledger.py b/material_management/doctype/stock_ledger/stock_ledger.py
index a4498ca949d..a52dae75909 100644
--- a/material_management/doctype/stock_ledger/stock_ledger.py
+++ b/material_management/doctype/stock_ledger/stock_ledger.py
@@ -217,7 +217,7 @@ class DocType:
 			if v["actual_qty"]:
 				sle_id = self.make_entry(v)
 
-			get_obj('Warehouse', v["warehouse"]).update_bin(flt(v["actual_qty"]), 0, 0, 0, 0, v["item_code"], v["posting_date"], sle_id, v["posting_time"], '')
+			get_obj('Warehouse', v["warehouse"]).update_bin(flt(v["actual_qty"]), 0, 0, 0, 0, v["item_code"], v["posting_date"], sle_id, v["posting_time"], '', v["is_cancelled"])
 
 
 	# -----------
diff --git a/material_management/doctype/stock_reconciliation/stock_reconciliation.py b/material_management/doctype/stock_reconciliation/stock_reconciliation.py
index d7eb78b358c..51887ff6991 100644
--- a/material_management/doctype/stock_reconciliation/stock_reconciliation.py
+++ b/material_management/doctype/stock_reconciliation/stock_reconciliation.py
@@ -118,7 +118,7 @@ class DocType:
 	# ------------------
 	def get_current_stock(self, item_code, warehouse):
 		bin = sql("select name from `tabBin` where item_code = '%s' and warehouse = '%s'" % (item_code, warehouse))
-		prev_sle = bin and get_obj('Bin', bin[0][0]).get_prev_sle('', self.doc.reconciliation_date,self.doc.reconciliation_time) or 0
+		prev_sle = bin and get_obj('Bin', bin[0][0]).get_prev_sle(self.doc.reconciliation_date,self.doc.reconciliation_time) or 0
 		stock_uom = sql("select stock_uom from `tabItem` where name = %s",item_code)
 		return {'actual_qty': prev_sle.get('bin_aqat', 0), 'stock_uom': stock_uom[0][0]}
 
@@ -169,7 +169,7 @@ class DocType:
 		bin_obj = get_obj('Bin', bin[0][0])
 
 		# prev sle
-		prev_sle = bin_obj.get_prev_sle('', self.doc.reconciliation_date,self.doc.reconciliation_time)
+		prev_sle = bin_obj.get_prev_sle(self.doc.reconciliation_date,self.doc.reconciliation_time)
 
 		# update valuation in sle posted after reconciliation datetime
 		bin_obj.update_item_valuation(posting_date = self.doc.reconciliation_date, posting_time = self.doc.reconciliation_time, prev_sle = prev_sle)
diff --git a/material_management/doctype/valuation_control/valuation_control.py b/material_management/doctype/valuation_control/valuation_control.py
index d28de4e91f1..c23753fc0e0 100644
--- a/material_management/doctype/valuation_control/valuation_control.py
+++ b/material_management/doctype/valuation_control/valuation_control.py
@@ -23,31 +23,23 @@ class DocType:
 
 	# Get FIFO Rate from Stack
 	# -------------------------
-	def get_fifo_rate(self, fcfs_bal, qty):
-		if qty:
-			fcfs_val = 0
-			withdraw = flt(qty)
-			while withdraw:
-				if not fcfs_bal:
-					break # nothing in store
-					 
-				batch = fcfs_bal[0]
-					
-				if batch[0] < withdraw:
-					# not enough in current batch, clear batch
-					withdraw -= batch[0]
-					fcfs_val += (flt(batch[0]) * flt(batch[1]))
-					fcfs_bal.pop(0)
-				else:
-					# all from current batch
-					fcfs_val += (flt(withdraw) * flt(batch[1]))
-					batch[0] -= withdraw
-					withdraw = 0
-			fcfs_rate = flt(fcfs_val) / flt(qty)
-			return fcfs_rate
-		else:
-			return fcfs_bal and fcfs_bal[0][1] or 0
-
+	def get_fifo_rate(self, fcfs_stack, qty):
+		fcfs_val = 0
+		withdraw = flt(qty)
+		while withdraw:
+			batch = fcfs_stack[0]				
+			if batch[0] <= withdraw:
+				# not enough or exactly same qty in current batch, clear batch
+				withdraw -= batch[0]
+				fcfs_val += (flt(batch[0]) * flt(batch[1]))
+				fcfs_stack.pop(0)
+			else:
+				# all from current batch
+				fcfs_val += (flt(withdraw) * flt(batch[1]))
+				batch[0] -= withdraw
+				withdraw = 0
+		fcfs_rate = flt(fcfs_val) / flt(qty)
+		return fcfs_rate
 
 	# --------------------------------
 	# get serializable inventory rate
@@ -76,15 +68,17 @@ class DocType:
 	def get_incoming_rate(self, posting_date, posting_time, item, warehouse, qty = 0, serial_no = ''):
 		in_rate = 0
 		val_method = self.get_valuation_method(item)
+		bin_obj = get_obj('Warehouse',warehouse).get_bin(item)
+		
 		if serial_no:
 			in_rate = self.get_serializable_inventory_rate(serial_no)
 		elif val_method == 'FIFO':
-			bin_obj = get_obj('Warehouse',warehouse).get_bin(item)
-			prev_sle = bin_obj.get_prev_sle('',posting_date, posting_time)
-			fcfs_stack = eval(prev_sle.get('fcfs_stack', '[]') or '[]')
-			in_rate = fcfs_stack and self.get_fifo_rate(fcfs_stack, qty) or 0
+			in_rate = 0
+			if qty:
+				prev_sle = bin_obj.get_prev_sle(posting_date, posting_time)
+				fcfs_stack = eval(prev_sle.get('fcfs_stack', '[]') or '[]')
+				in_rate = fcfs_stack and self.get_fifo_rate(fcfs_stack, qty) or 0				
 		elif val_method == 'Moving Average':
-			bin_obj = get_obj('Warehouse',warehouse).get_bin(item)
-			prev_sle = bin_obj.get_prev_sle('',posting_date, posting_time)
+			prev_sle = bin_obj.get_prev_sle(posting_date, posting_time)
 			in_rate = prev_sle and prev_sle.get('valuation_rate', 0) or 0
-		return in_rate 
+		return in_rate
diff --git a/material_management/doctype/warehouse/warehouse.py b/material_management/doctype/warehouse/warehouse.py
index 8b523dd3e2d..51c615c708a 100644
--- a/material_management/doctype/warehouse/warehouse.py
+++ b/material_management/doctype/warehouse/warehouse.py
@@ -52,12 +52,12 @@ class DocType:
 
   # update bin
   # ----------
-  def update_bin(self, actual_qty, reserved_qty, ordered_qty, indented_qty, planned_qty, item_code, dt, sle_id = '',posting_time = '', serial_no = ''):
+  def update_bin(self, actual_qty, reserved_qty, ordered_qty, indented_qty, planned_qty, item_code, dt, sle_id = '',posting_time = '', serial_no = '', is_cancelled = 'No'):
     self.validate_asset(item_code)
     it_det = get_value('Item', item_code, 'is_stock_item')
     if it_det and it_det == 'Yes':
       bin = self.get_bin(item_code)
-      bin.update_stock(actual_qty, reserved_qty, ordered_qty, indented_qty, planned_qty, dt, sle_id, posting_time, serial_no)
+      bin.update_stock(actual_qty, reserved_qty, ordered_qty, indented_qty, planned_qty, dt, sle_id, posting_time, serial_no, is_cancelled)
       return bin
     else:
       msgprint("[Stock Update] Ignored %s since it is not a stock item" % item_code)