diff --git a/erpnext/controllers/sales_and_purchase_return.py b/erpnext/controllers/sales_and_purchase_return.py
index 9cdc0a07cd5..69579b5b8e6 100644
--- a/erpnext/controllers/sales_and_purchase_return.py
+++ b/erpnext/controllers/sales_and_purchase_return.py
@@ -145,7 +145,7 @@ def validate_returned_items(doc):
 					ref.rate
 					and flt(d.rate) > ref.rate
 					and doc.doctype in ("Delivery Note", "Sales Invoice")
-					and get_valuation_method(ref.item_code, doc.company) != "Moving Average"
+					and get_valuation_method(d.item_code, doc.company) != "Moving Average"
 				):
 					frappe.throw(
 						_("Row # {0}: Rate cannot be greater than the rate used in {1} {2}").format(