diff --git a/erpnext/stock/doctype/delivery_note/test_delivery_note.py b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
index d5b2d42b8f5..49f1b24a743 100644
--- a/erpnext/stock/doctype/delivery_note/test_delivery_note.py
+++ b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
@@ -1026,7 +1026,14 @@ class TestDeliveryNote(IntegrationTestCase):
 	def test_sales_invoice_qty_after_return(self):
 		from erpnext.stock.doctype.delivery_note.delivery_note import make_sales_return
 
-		dn = create_delivery_note(qty=10)
+		item = make_item(
+			"Test Sales Invoice Qty After Return",
+			properties={"is_stock_item": 1, "stock_uom": "Nos"},
+		)
+
+		make_stock_entry(item_code=item.name, target="_Test Warehouse - _TC", qty=10, basic_rate=100)
+
+		dn = create_delivery_note(item_code=item.name, qty=10)
 
 		dnr1 = make_sales_return(dn.name)
 		dnr1.get("items")[0].qty = -3
@@ -1042,8 +1049,8 @@ class TestDeliveryNote(IntegrationTestCase):
 		self.assertEqual(si.get("items")[0].qty, 5)
 
 		si.reload().cancel().delete()
-		dnr1.reload().cancel().delete()
 		dnr2.reload().cancel().delete()
+		dnr1.reload().cancel().delete()
 		dn.reload().cancel().delete()
 
 	def test_dn_billing_status_case3(self):
diff --git a/erpnext/stock/stock_ledger.py b/erpnext/stock/stock_ledger.py
index 53df3d1d6f7..1801aeb2f9e 100644
--- a/erpnext/stock/stock_ledger.py
+++ b/erpnext/stock/stock_ledger.py
@@ -8,6 +8,7 @@ import json
 import frappe
 from frappe import _, bold, scrub
 from frappe.model.meta import get_field_precision
+from frappe.query_builder import Order
 from frappe.query_builder.functions import Sum
 from frappe.utils import (
 	add_to_date,
@@ -67,8 +68,8 @@ def make_sl_entries(sl_entries, allow_negative_stock=False, via_landed_cost_vouc
 	from erpnext.controllers.stock_controller import future_sle_exists
 
 	if sl_entries:
-		cancel = sl_entries[0].get("is_cancelled")
-		if cancel:
+		cancelled = sl_entries[0].get("is_cancelled")
+		if cancelled:
 			validate_cancellation(sl_entries)
 			set_as_cancel(sl_entries[0].get("voucher_type"), sl_entries[0].get("voucher_no"))
 
@@ -79,7 +80,7 @@ def make_sl_entries(sl_entries, allow_negative_stock=False, via_landed_cost_vouc
 			if sle.serial_no and not via_landed_cost_voucher:
 				validate_serial_no(sle)
 
-			if cancel:
+			if cancelled:
 				sle["actual_qty"] = -flt(sle.get("actual_qty"))
 
 				if sle["actual_qty"] < 0 and not sle.get("outgoing_rate"):
@@ -108,7 +109,9 @@ def make_sl_entries(sl_entries, allow_negative_stock=False, via_landed_cost_vouc
 			if is_stock_item:
 				bin_name = get_or_make_bin(args.get("item_code"), args.get("warehouse"))
 				args.reserved_stock = flt(frappe.db.get_value("Bin", bin_name, "reserved_stock"))
-				repost_current_voucher(args, allow_negative_stock, via_landed_cost_voucher)
+				repost_current_voucher(
+					args, allow_negative_stock, via_landed_cost_voucher, cancelled=cancelled
+				)
 				update_bin_qty(bin_name, args)
 			else:
 				frappe.msgprint(
@@ -116,7 +119,7 @@ def make_sl_entries(sl_entries, allow_negative_stock=False, via_landed_cost_vouc
 				)
 
 
-def repost_current_voucher(args, allow_negative_stock=False, via_landed_cost_voucher=False):
+def repost_current_voucher(args, allow_negative_stock=False, via_landed_cost_voucher=False, cancelled=False):
 	if args.get("actual_qty") or args.get("voucher_type") == "Stock Reconciliation":
 		if not args.get("posting_date"):
 			args["posting_date"] = nowdate()
@@ -135,6 +138,7 @@ def repost_current_voucher(args, allow_negative_stock=False, via_landed_cost_vou
 					"sle_id": args.get("name"),
 					"creation": args.get("creation"),
 					"reserved_stock": args.get("reserved_stock"),
+					"cancelled": cancelled,
 				},
 				allow_negative_stock=allow_negative_stock,
 				via_landed_cost_voucher=via_landed_cost_voucher,
@@ -667,33 +671,31 @@ class update_entries_after:
 	def process_sle_against_current_timestamp(self):
 		sl_entries = self.get_sle_against_current_voucher()
 		for sle in sl_entries:
+			sle["timestamp"] = sle.posting_datetime
 			self.process_sle(sle)
 
 	def get_sle_against_current_voucher(self):
 		self.args["posting_datetime"] = get_combine_datetime(self.args.posting_date, self.args.posting_time)
+		doctype = frappe.qb.DocType("Stock Ledger Entry")
 
-		return frappe.db.sql(
-			"""
-			select
-				*, posting_datetime as "timestamp"
-			from
-				`tabStock Ledger Entry`
-			where
-				item_code = %(item_code)s
-				and warehouse = %(warehouse)s
-				and is_cancelled = 0
-				and (
-					posting_datetime = %(posting_datetime)s
-				)
-				and creation = %(creation)s
-			order by
-				creation ASC
-			for update
-		""",
-			self.args,
-			as_dict=1,
+		query = (
+			frappe.qb.from_(doctype)
+			.select("*")
+			.where(
+				(doctype.item_code == self.args.item_code)
+				& (doctype.warehouse == self.args.warehouse)
+				& (doctype.is_cancelled == 0)
+				& (doctype.posting_datetime == self.args.posting_datetime)
+			)
+			.orderby(doctype.creation, order=Order.asc)
+			.for_update()
 		)
 
+		if not self.args.get("cancelled"):
+			query = query.where(doctype.creation == self.args.creation)
+
+		return query.run(as_dict=True)
+
 	def get_future_entries_to_fix(self):
 		# includes current entry!
 		args = self.data[self.args.warehouse].previous_sle or frappe._dict(
@@ -1715,7 +1717,7 @@ def get_previous_sle_of_current_voucher(args, operator="<", exclude_current_vouc
 		voucher_no = args.get("voucher_no")
 		voucher_condition = f"and voucher_no != '{voucher_no}'"
 
-	elif args.get("creation") and args.get("sle_id"):
+	elif args.get("creation") and args.get("sle_id") and not args.get("cancelled"):
 		creation = args.get("creation")
 		operator = "<="
 		voucher_condition = f"and creation < '{creation}'"