diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index 715a73e0da6..f1e98c624b5 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -821,7 +821,7 @@ class AccountsController(TransactionBase):
 									and item.get("use_serial_batch_fields")
 								)
 							):
-								if fieldname == "batch_no" and not item.batch_no:
+								if fieldname == "batch_no" and not item.batch_no and not item.is_free_item:
 									item.set("rate", ret.get("rate"))
 									item.set("price_list_rate", ret.get("price_list_rate"))
 								item.set(fieldname, value)