diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index 64236aa2a8d..e67192a4299 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -1222,7 +1222,9 @@ class StockEntry(StockController, SubcontractingInwardController):
 				).update_serial_and_batch_entries(
 					serial_nos=serial_nos.get(row.name), batch_nos=batch_nos.get(row.name)
 				)
-			elif not row.serial_and_batch_bundle:
+			elif not row.serial_and_batch_bundle and frappe.get_single_value(
+				"Stock Settings", "auto_create_serial_and_batch_bundle_for_outward"
+			):
 				bundle_doc = SerialBatchCreation(
 					{
 						"item_code": row.item_code,
diff --git a/erpnext/stock/serial_batch_bundle.py b/erpnext/stock/serial_batch_bundle.py
index 1fb5d1391aa..686478d07b2 100644
--- a/erpnext/stock/serial_batch_bundle.py
+++ b/erpnext/stock/serial_batch_bundle.py
@@ -268,7 +268,7 @@ class SerialBatchBundle:
 			and not self.sle.serial_and_batch_bundle
 			and self.item_details.has_batch_no == 1
 			and (
-				self.item_details.create_new_batch
+				(self.item_details.create_new_batch and self.sle.actual_qty > 0)
 				or (
 					frappe.get_single_value(
 						"Stock Settings", "auto_create_serial_and_batch_bundle_for_outward"