diff --git a/erpnext/accounts/report/accounts_payable/test_accounts_payable.py b/erpnext/accounts/report/accounts_payable/test_accounts_payable.py
index 27af4232374..d07b0aa43ad 100644
--- a/erpnext/accounts/report/accounts_payable/test_accounts_payable.py
+++ b/erpnext/accounts/report/accounts_payable/test_accounts_payable.py
@@ -38,23 +38,6 @@ class TestAccountsPayable(AccountsTestMixin, IntegrationTestCase):
 		self.assertEqual(data[1][0].get("outstanding"), 300)
 		self.assertEqual(data[1][0].get("currency"), "USD")
 
-	def test_account_payable_for_debit_note(self):
-		pi = self.create_purchase_invoice(do_not_submit=True)
-		pi.is_return = 1
-		pi.items[0].qty = -1
-		pi = pi.save().submit()
-
-		filters = {
-			"company": self.company,
-			"party_type": "Supplier",
-			"party": [self.supplier],
-			"report_date": today(),
-			"range": "30, 60, 90, 120",
-		}
-
-		data = execute(filters)
-		self.assertEqual(data[1][0].get("invoiced"), 300)
-
 	def create_purchase_invoice(self, do_not_submit=False):
 		frappe.set_user("Administrator")
 		pi = make_purchase_invoice(
diff --git a/erpnext/accounts/report/accounts_receivable/accounts_receivable.py b/erpnext/accounts/report/accounts_receivable/accounts_receivable.py
index 39615aa14c4..c7df618dd6a 100644
--- a/erpnext/accounts/report/accounts_receivable/accounts_receivable.py
+++ b/erpnext/accounts/report/accounts_receivable/accounts_receivable.py
@@ -267,18 +267,6 @@ class ReceivablePayableReport:
 				row.invoiced_in_account_currency += amount_in_account_currency
 		else:
 			if self.is_invoice(ple):
-				# when invoice has is_return marked
-				if self.invoice_details.get(row.voucher_no, {}).get("is_return"):
-					# for Credit Note
-					if row.voucher_type == "Sales Invoice":
-						row.credit_note -= amount
-						row.credit_note_in_account_currency -= amount_in_account_currency
-					# for Debit Note
-					else:
-						row.invoiced -= amount
-						row.invoiced_in_account_currency -= amount_in_account_currency
-					return
-
 				if row.voucher_no == ple.voucher_no == ple.against_voucher_no:
 					row.paid -= amount
 					row.paid_in_account_currency -= amount_in_account_currency
@@ -433,7 +421,7 @@ class ReceivablePayableReport:
 			# nosemgrep
 			si_list = frappe.db.sql(
 				"""
-				select name, due_date, po_no, is_return
+				select name, due_date, po_no
 				from `tabSales Invoice`
 				where posting_date <= %s
 					and company = %s
@@ -465,7 +453,7 @@ class ReceivablePayableReport:
 			# nosemgrep
 			for pi in frappe.db.sql(
 				"""
-				select name, due_date, bill_no, bill_date, is_return
+				select name, due_date, bill_no, bill_date
 				from `tabPurchase Invoice`
 				where
 					posting_date <= %s
diff --git a/erpnext/accounts/report/accounts_receivable/test_accounts_receivable.py b/erpnext/accounts/report/accounts_receivable/test_accounts_receivable.py
index 0574c39b7f5..88c7909154d 100644
--- a/erpnext/accounts/report/accounts_receivable/test_accounts_receivable.py
+++ b/erpnext/accounts/report/accounts_receivable/test_accounts_receivable.py
@@ -204,7 +204,7 @@ class TestAccountsReceivable(AccountsTestMixin, IntegrationTestCase):
 
 		expected_data_after_credit_note = [
 			[100.0, 100.0, 40.0, 0.0, 60.0, si.name],
-			[0, 0, 0, 100.0, -100.0, cr_note.name],
+			[0, 0, 100.0, 0.0, -100.0, cr_note.name],
 		]
 		self.assertEqual(len(report[1]), 2)
 		si_row = next(
@@ -478,19 +478,13 @@ class TestAccountsReceivable(AccountsTestMixin, IntegrationTestCase):
 		report = execute(filters)[1]
 		self.assertEqual(len(report), 2)
 
-		expected_data = {sr.name: [0.0, 10.0, -10.0, 0.0, -10], si.name: [100.0, 0.0, 100.0, 10.0, 90.0]}
+		expected_data = {sr.name: [10.0, -10.0, 0.0, -10], si.name: [100.0, 100.0, 10.0, 90.0]}
 
 		rows = report[:2]
 		for row in rows:
 			self.assertEqual(
 				expected_data[row.voucher_no],
-				[
-					row.invoiced or row.paid,
-					row.credit_note,
-					row.outstanding,
-					row.remaining_balance,
-					row.future_amount,
-				],
+				[row.invoiced or row.paid, row.outstanding, row.remaining_balance, row.future_amount],
 			)
 
 		pe.cancel()