diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index 1a3e783327b..d9196d87182 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -437,8 +437,8 @@ class DocType:
 					if self.doc.purpose == 'Purchase Return':
 						#delete_doc("Serial No", serial_no)
 						serial_doc = Document("Serial No", serial_no)
-						serial_doc.status = 'Purchase Returned'
-						serial_doc.docstatus = 2
+						serial_doc.status = is_submit and 'Purchase Returned' or 'In Store'
+						serial_doc.docstatus = is_submit and 2 or 0
 						serial_doc.save()