diff --git a/erpnext/controllers/taxes_and_totals.py b/erpnext/controllers/taxes_and_totals.py
index 24fe2935792..a4410256f61 100644
--- a/erpnext/controllers/taxes_and_totals.py
+++ b/erpnext/controllers/taxes_and_totals.py
@@ -65,12 +65,13 @@ class calculate_taxes_and_totals(object):
 
 				if item.doctype in ['Quotation Item', 'Sales Order Item', 'Delivery Note Item', 'Sales Invoice Item']:
 					item.rate_with_margin, item.base_rate_with_margin = self.calculate_margin(item)
-
-					item.rate = flt(item.rate_with_margin * (1.0 - (item.discount_percentage / 100.0)), item.precision("rate"))\
-						if item.rate_with_margin > 0 else item.rate
+					if flt(item.rate_with_margin) > 0:
+						item.rate = flt(item.rate_with_margin * (1.0 - (item.discount_percentage / 100.0)), item.precision("rate"))
+						item.discount_amount = item.rate_with_margin - item.rate
+				elif flt(item.price_list_rate) > 0:
+						item.discount_amount = item.price_list_rate - item.rate
 
 				item.net_rate = item.rate
-				item.discount_amount = item.rate_with_margin - item.rate
 				item.amount = flt(item.rate * item.qty,	item.precision("amount"))
 				item.net_amount = item.amount
 
diff --git a/erpnext/public/js/controllers/taxes_and_totals.js b/erpnext/public/js/controllers/taxes_and_totals.js
index 21e02b7c80b..a2d44c3ae24 100644
--- a/erpnext/public/js/controllers/taxes_and_totals.js
+++ b/erpnext/public/js/controllers/taxes_and_totals.js
@@ -13,8 +13,8 @@ erpnext.taxes_and_totals = erpnext.payments.extend({
 				+ flt(effective_item_rate) * ( flt(item.margin_rate_or_amount) / 100);
 		} else {
 			item.rate_with_margin = flt(effective_item_rate) + flt(item.margin_rate_or_amount);
-			item.base_rate_with_margin = flt(item.rate_with_margin) * flt(this.frm.doc.conversion_rate);
 		}
+		item.base_rate_with_margin = flt(item.rate_with_margin) * flt(this.frm.doc.conversion_rate);
 
 		item.rate = flt(item.rate_with_margin , precision("rate", item));
 
diff --git a/erpnext/public/js/controllers/transaction.js b/erpnext/public/js/controllers/transaction.js
index f3c29fce78e..a33b87f619e 100644
--- a/erpnext/public/js/controllers/transaction.js
+++ b/erpnext/public/js/controllers/transaction.js
@@ -33,6 +33,7 @@ erpnext.TransactionController = erpnext.taxes_and_totals.extend({
 				item.margin_rate_or_amount = 0;
 				item.rate_with_margin = 0;
 			}
+			item.base_rate_with_margin = item.rate_with_margin * flt(this.frm.doc.conversion_rate);
 
 			cur_frm.cscript.set_gross_profit(item);
 			cur_frm.cscript.calculate_taxes_and_totals();