From e479975f54a760a8ac104ebbcb71920d733c56cc Mon Sep 17 00:00:00 2001
From: Rohit Waghchaure <rohitw1991@gmail.com>
Date: Fri, 11 Apr 2025 16:16:09 +0530
Subject: [PATCH] fix: allow to use batchwise valuation for moving average
 items

(cherry picked from commit 65ba79bb857c5d55c9e3b87c15a7f150901802c8)
---
 erpnext/stock/doctype/batch/batch.py          |  4 --
 .../purchase_receipt/test_purchase_receipt.py |  2 +-
 .../doctype/stock_entry/test_stock_entry.py   | 47 +++++++++++++++++++
 .../test_stock_ledger_entry.py                |  2 +-
 erpnext/stock/serial_batch_bundle.py          |  4 +-
 5 files changed, 52 insertions(+), 7 deletions(-)

diff --git a/erpnext/stock/doctype/batch/batch.py b/erpnext/stock/doctype/batch/batch.py
index 47acebb6634..3c46fcb5aad 100644
--- a/erpnext/stock/doctype/batch/batch.py
+++ b/erpnext/stock/doctype/batch/batch.py
@@ -160,10 +160,6 @@ class Batch(Document):
 		from erpnext.stock.utils import get_valuation_method
 
 		if self.is_new():
-			if get_valuation_method(self.item) == "Moving Average":
-				self.use_batchwise_valuation = 0
-				return
-
 			if frappe.db.get_single_value("Stock Settings", "do_not_use_batchwise_valuation"):
 				self.use_batchwise_valuation = 0
 				return
diff --git a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
index 4b69b99e69a..8e8532a904b 100644
--- a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
@@ -3327,7 +3327,7 @@ class TestPurchaseReceipt(FrappeTestCase):
 		bundle = dn.items[0].serial_and_batch_bundle
 
 		valuation_rate = frappe.db.get_value("Serial and Batch Bundle", bundle, "avg_rate")
-		self.assertEqual(valuation_rate, 150)
+		self.assertEqual(valuation_rate, 100.0)
 
 		doc = frappe.get_doc("Stock Settings")
 		doc.do_not_use_batchwise_valuation = 1
diff --git a/erpnext/stock/doctype/stock_entry/test_stock_entry.py b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
index 0791877f522..7fa31cae57b 100644
--- a/erpnext/stock/doctype/stock_entry/test_stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
@@ -1960,6 +1960,53 @@ class TestStockEntry(FrappeTestCase):
 		self.assertEqual(se.items[0].amount, 300)
 		self.assertEqual(se.items[0].basic_amount, 300)
 
+	def test_use_batch_wise_valuation_for_moving_average_item(self):
+		item_code = "_Test Use Batch Wise MA Valuation Item"
+
+		make_item(
+			item_code,
+			{
+				"is_stock_item": 1,
+				"valuation_method": "Moving Average",
+				"has_batch_no": 1,
+				"create_new_batch": 1,
+				"batch_naming_series": "Test-UBWVMAV-T-NNS.#####",
+			},
+		)
+
+		frappe.db.set_single_value("Stock Settings", "do_not_use_batchwise_valuation", 0)
+
+		batches = []
+		se = make_stock_entry(
+			item_code=item_code,
+			qty=10,
+			to_warehouse="_Test Warehouse - _TC",
+			basic_rate=100,
+			posting_date=add_days(nowdate(), -2),
+		)
+
+		batches.append(get_batch_from_bundle(se.items[0].serial_and_batch_bundle))
+
+		se = make_stock_entry(
+			item_code=item_code,
+			qty=10,
+			to_warehouse="_Test Warehouse - _TC",
+			basic_rate=300,
+			posting_date=add_days(nowdate(), -1),
+		)
+
+		batches.append(get_batch_from_bundle(se.items[0].serial_and_batch_bundle))
+
+		se = make_stock_entry(
+			item_code=item_code,
+			qty=5,
+			from_warehouse="_Test Warehouse - _TC",
+			batch_no=batches[1],
+			posting_date=nowdate(),
+		)
+
+		self.assertEqual(se.items[0].basic_rate, 300)
+
 
 def make_serialized_item(**args):
 	args = frappe._dict(args)
diff --git a/erpnext/stock/doctype/stock_ledger_entry/test_stock_ledger_entry.py b/erpnext/stock/doctype/stock_ledger_entry/test_stock_ledger_entry.py
index 8658316ad90..6beab7ce48d 100644
--- a/erpnext/stock/doctype/stock_ledger_entry/test_stock_ledger_entry.py
+++ b/erpnext/stock/doctype/stock_ledger_entry/test_stock_ledger_entry.py
@@ -523,7 +523,7 @@ class TestStockLedgerEntry(FrappeTestCase, StockTestMixin):
 		dns = create_delivery_note_entries_for_batchwise_item_valuation_test(dn_entry_list)
 		sle_details = fetch_sle_details_for_doc_list(dns, ["stock_value_difference"])
 		svd_list = [-1 * d["stock_value_difference"] for d in sle_details]
-		expected_incoming_rates = expected_abs_svd = [100.0, 100.0, 100.0, 100.0]
+		expected_incoming_rates = expected_abs_svd = [75.0, 125.0, 75.0, 125.0]
 
 		self.assertEqual(expected_abs_svd, svd_list, "Incorrect 'Stock Value Difference' values")
 		for dn, _incoming_rate in zip(dns, expected_incoming_rates, strict=False):
diff --git a/erpnext/stock/serial_batch_bundle.py b/erpnext/stock/serial_batch_bundle.py
index 8e64b4e856f..e127960d6bb 100644
--- a/erpnext/stock/serial_batch_bundle.py
+++ b/erpnext/stock/serial_batch_bundle.py
@@ -692,7 +692,9 @@ class BatchNoValuation(DeprecatedBatchNoValuation):
 		self.batchwise_valuation_batches = []
 		self.non_batchwise_valuation_batches = []
 
-		if get_valuation_method(self.sle.item_code) == "Moving Average":
+		if get_valuation_method(self.sle.item_code) == "Moving Average" and frappe.db.get_single_value(
+			"Stock Settings", "do_not_use_batchwise_valuation"
+		):
 			self.non_batchwise_valuation_batches = self.batches
 			return