diff --git a/erpnext/stock/doctype/stock_entry/test_stock_entry.py b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
index 38bf0a5f9e5..cc06bd709ad 100644
--- a/erpnext/stock/doctype/stock_entry/test_stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
@@ -1662,6 +1662,48 @@ class TestStockEntry(FrappeTestCase):
 
 		self.assertRaises(BatchExpiredError, se.save)
 
+	def test_negative_stock_reco(self):
+		from erpnext.controllers.stock_controller import BatchExpiredError
+		from erpnext.stock.doctype.batch.test_batch import make_new_batch
+
+		frappe.db.set_single_value("Stock Settings", "allow_negative_stock", 0)
+
+		item_code = "Test Negative Item - 001"
+		item_doc = create_item(item_code=item_code, is_stock_item=1, valuation_rate=10)
+
+		make_stock_entry(
+			item_code=item_code,
+			posting_date=add_days(today(), -3),
+			posting_time="00:00:00",
+			purpose="Material Receipt",
+			qty=10,
+			to_warehouse="_Test Warehouse - _TC",
+			do_not_save=True,
+		)
+
+		make_stock_entry(
+			item_code=item_code,
+			posting_date=today(),
+			posting_time="00:00:00",
+			purpose="Material Receipt",
+			qty=8,
+			from_warehouse="_Test Warehouse - _TC",
+			do_not_save=True,
+		)
+
+		sr_doc = create_stock_reconciliation(
+			purpose="Stock Reconciliation",
+			posting_date=add_days(today(), -3),
+			posting_time="00:00:00",
+			item_code=item_code,
+			warehouse="_Test Warehouse - _TC",
+			valuation_rate=10,
+			qty=7,
+			do_not_submit=True,
+		)
+
+		self.assertRaises(frappe.ValidationError, sr_doc.submit)
+
 
 def make_serialized_item(**args):
 	args = frappe._dict(args)
diff --git a/erpnext/stock/stock_ledger.py b/erpnext/stock/stock_ledger.py
index d8b12ed5b92..08fc6fbd42f 100644
--- a/erpnext/stock/stock_ledger.py
+++ b/erpnext/stock/stock_ledger.py
@@ -1050,7 +1050,7 @@ class update_entries_after(object):
 			frappe.db.set_value("Bin", bin_name, updated_values, update_modified=True)
 
 
-def get_previous_sle_of_current_voucher(args, exclude_current_voucher=False):
+def get_previous_sle_of_current_voucher(args, operator="<", exclude_current_voucher=False):
 	"""get stock ledger entries filtered by specific posting datetime conditions"""
 
 	args["time_format"] = "%H:%i:%s"
@@ -1076,13 +1076,13 @@ def get_previous_sle_of_current_voucher(args, exclude_current_voucher=False):
 				posting_date < %(posting_date)s or
 				(
 					posting_date = %(posting_date)s and
-					time_format(posting_time, %(time_format)s) < time_format(%(posting_time)s, %(time_format)s)
+					time_format(posting_time, %(time_format)s) {operator} time_format(%(posting_time)s, %(time_format)s)
 				)
 			)
 		order by timestamp(posting_date, posting_time) desc, creation desc
 		limit 1
 		for update""".format(
-			voucher_condition=voucher_condition
+			operator=operator, voucher_condition=voucher_condition
 		),
 		args,
 		as_dict=1,
@@ -1375,7 +1375,7 @@ def get_stock_reco_qty_shift(args):
 			stock_reco_qty_shift = flt(args.actual_qty)
 	else:
 		# reco is being submitted
-		last_balance = get_previous_sle_of_current_voucher(args, exclude_current_voucher=True).get(
+		last_balance = get_previous_sle_of_current_voucher(args, "<=", exclude_current_voucher=True).get(
 			"qty_after_transaction"
 		)