diff --git a/erpnext/stock/doctype/delivery_note/test_delivery_note.py b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
index 407e005a1b8..dd9d247902b 100644
--- a/erpnext/stock/doctype/delivery_note/test_delivery_note.py
+++ b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
@@ -2596,51 +2596,6 @@ class TestDeliveryNote(FrappeTestCase):
 		self.assertEqual(dn.per_billed, 100)
 		self.assertEqual(dn.per_returned, 100)
 
-<<<<<<< HEAD
-=======
-	def test_packed_item_serial_no_status(self):
-		from erpnext.selling.doctype.product_bundle.test_product_bundle import make_product_bundle
-		from erpnext.stock.doctype.item.test_item import make_item
-
-		# test Update Items with product bundle
-		if not frappe.db.exists("Item", "_Test Product Bundle Item New 1"):
-			bundle_item = make_item("_Test Product Bundle Item New 1", {"is_stock_item": 0})
-			bundle_item.append(
-				"item_defaults", {"company": "_Test Company", "default_warehouse": "_Test Warehouse - _TC"}
-			)
-			bundle_item.save(ignore_permissions=True)
-
-		make_item(
-			"_Packed Item New Sn Item",
-			{"is_stock_item": 1, "has_serial_no": 1, "serial_no_series": "SN-PACKED-NEW-.#####"},
-		)
-		make_product_bundle("_Test Product Bundle Item New 1", ["_Packed Item New Sn Item"], 1)
-
-		make_stock_entry(item="_Packed Item New Sn Item", target="_Test Warehouse - _TC", qty=5, rate=100)
-
-		dn = create_delivery_note(
-			item_code="_Test Product Bundle Item New 1",
-			warehouse="_Test Warehouse - _TC",
-			qty=5,
-		)
-
-		dn.reload()
-
-		serial_nos = []
-		for row in dn.packed_items:
-			self.assertTrue(row.serial_and_batch_bundle)
-			doc = frappe.get_doc("Serial and Batch Bundle", row.serial_and_batch_bundle)
-			for row in doc.entries:
-				status = frappe.db.get_value("Serial No", row.serial_no, "status")
-				self.assertEqual(status, "Delivered")
-				serial_nos.append(row.serial_no)
-
-		dn.cancel()
-
-		for row in serial_nos:
-			status = frappe.db.get_value("Serial No", row, "status")
-			self.assertEqual(status, "Active")
-
 	def test_sales_return_for_product_bundle(self):
 		from erpnext.selling.doctype.product_bundle.test_product_bundle import make_product_bundle
 		from erpnext.stock.doctype.delivery_note.delivery_note import make_sales_return
@@ -2685,6 +2640,8 @@ class TestDeliveryNote(FrappeTestCase):
 			qty=5,
 		)
 
+		dn.reload()
+
 		serial_batch_map = {}
 		for row in dn.packed_items:
 			self.assertTrue(row.serial_and_batch_bundle)
@@ -2762,7 +2719,6 @@ class TestDeliveryNote(FrappeTestCase):
 						serial_batch_map[row.item_code].batch_no_valuation[entry.batch_no],
 					)
 
->>>>>>> 1d57bbca11 (test: test case for sales return for product bundle)
 
 def create_delivery_note(**args):
 	dn = frappe.new_doc("Delivery Note")
diff --git a/erpnext/stock/serial_batch_bundle.py b/erpnext/stock/serial_batch_bundle.py
index 2408c178f2b..589861809d4 100644
--- a/erpnext/stock/serial_batch_bundle.py
+++ b/erpnext/stock/serial_batch_bundle.py
@@ -209,7 +209,20 @@ class SerialBatchBundle:
 				elif sn_doc.has_batch_no and len(sn_doc.entries) == 1:
 					values_to_update["batch_no"] = sn_doc.entries[0].batch_no
 
-			frappe.db.set_value(self.child_doctype, self.sle.voucher_detail_no, values_to_update)
+			if self.child_doctype == "Packed Item":
+				name = frappe.db.get_value(
+					"Packed Item",
+					{
+						"parent_detail_docname": sn_doc.voucher_detail_no,
+						"item_code": self.sle.item_code,
+						"serial_and_batch_bundle": ("is", "not set"),
+					},
+					"name",
+				)
+
+				frappe.db.set_value(self.child_doctype, name, values_to_update)
+			else:
+				frappe.db.set_value(self.child_doctype, self.sle.voucher_detail_no, values_to_update)
 
 	@property
 	def child_doctype(self):
@@ -227,6 +240,13 @@ class SerialBatchBundle:
 		if self.sle.voucher_type == "Asset Repair":
 			child_doctype = "Asset Repair Consumed Item"
 
+		if self.sle.voucher_type in ["Delivery Note", "Sales Invoice"] and self.sle.voucher_detail_no:
+			if (
+				frappe.db.get_value(self.sle.voucher_type + " Item", self.sle.voucher_detail_no, "item_code")
+				!= self.sle.item_code
+			):
+				child_doctype = "Packed Item"
+
 		return child_doctype
 
 	def is_rejected_entry(self):