diff --git a/erpnext/__init__.py b/erpnext/__init__.py
index 1e8ad0ee677..aae6c4f199f 100644
--- a/erpnext/__init__.py
+++ b/erpnext/__init__.py
@@ -5,7 +5,7 @@ import frappe
 from erpnext.hooks import regional_overrides
 from frappe.utils import getdate
 
-__version__ = '11.1.65'
+__version__ = '11.1.66'
 
 def get_default_company(user=None):
 	'''Get default company for user'''
diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index 372d5412bb8..4d6e22e1915 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -1114,8 +1114,22 @@ def update_child_qty_rate(parent_doctype, trans_items, parent_doctype_name):
 		else:
 			child_item.rate = flt(d.get("rate"))
 		if flt(child_item.price_list_rate):
-			child_item.discount_percentage = flt((1 - flt(child_item.rate) / flt(child_item.price_list_rate)) * 100.0, \
-				child_item.precision("discount_percentage"))
+			if flt(child_item.rate) > flt(child_item.price_list_rate):
+				#  if rate is greater than price_list_rate, set margin
+				#  or set discount
+				child_item.discount_percentage = 0
+				child_item.margin_type = "Amount"
+				child_item.margin_rate_or_amount = flt(child_item.rate - child_item.price_list_rate,
+					child_item.precision("margin_rate_or_amount"))
+				child_item.rate_with_margin = child_item.rate
+			else:
+				child_item.discount_percentage = flt((1 - flt(child_item.rate) / flt(child_item.price_list_rate)) * 100.0,
+					child_item.precision("discount_percentage"))
+				child_item.discount_amount = flt(
+					child_item.price_list_rate) - flt(child_item.rate)
+				child_item.margin_type = ""
+				child_item.margin_rate_or_amount = 0
+				child_item.rate_with_margin = 0
 
 		child_item.flags.ignore_validate_update_after_submit = True
 		child_item.save()
diff --git a/erpnext/controllers/selling_controller.py b/erpnext/controllers/selling_controller.py
index abac43570e4..8b406f27f38 100644
--- a/erpnext/controllers/selling_controller.py
+++ b/erpnext/controllers/selling_controller.py
@@ -306,8 +306,9 @@ class SellingController(StockController):
 				if flt(d.conversion_factor)==0.0:
 					d.conversion_factor = get_conversion_factor(d.item_code, d.uom).get("conversion_factor") or 1.0
 				return_rate = 0
-				if cint(self.is_return) and self.return_against and self.docstatus==1:
-					return_rate = self.get_incoming_rate_for_sales_return(d.item_code, self.return_against)
+				if cint(self.is_return) and self.docstatus==1:
+					return_rate = self.get_incoming_rate_for_sales_return(d.item_code,
+						d.warehouse, self.return_against)
 
 				# On cancellation or if return entry submission, make stock ledger entry for
 				# target warehouse first, to update serial no values properly
diff --git a/erpnext/controllers/stock_controller.py b/erpnext/controllers/stock_controller.py
index 0c7629defb8..4a468205276 100644
--- a/erpnext/controllers/stock_controller.py
+++ b/erpnext/controllers/stock_controller.py
@@ -299,7 +299,7 @@ class StockController(AccountsController):
 
 		return serialized_items
 
-	def get_incoming_rate_for_sales_return(self, item_code, against_document):
+	def get_incoming_rate_for_sales_return(self, item_code, warehouse, against_document):
 		incoming_rate = 0.0
 		if against_document and item_code:
 			incoming_rate = frappe.db.sql("""select abs(stock_value_difference / actual_qty)
@@ -308,6 +308,9 @@ class StockController(AccountsController):
 					and item_code = %s limit 1""",
 				(self.doctype, against_document, item_code))
 			incoming_rate = incoming_rate[0][0] if incoming_rate else 0.0
+		else:
+			incoming_rate = get_valuation_rate(item_code, warehouse,
+				self.doctype, against_document, company=self.company, currency=self.currency)
 
 		return incoming_rate
 
diff --git a/erpnext/regional/italy/e-invoice.xml b/erpnext/regional/italy/e-invoice.xml
index 0a5bb296a5f..049a7eba61a 100644
--- a/erpnext/regional/italy/e-invoice.xml
+++ b/erpnext/regional/italy/e-invoice.xml
@@ -19,7 +19,7 @@
 {%- endmacro %}
 
 {%- macro render_discount_or_margin(item) -%}
-{%- if item.discount_percentage > 0.0 or item.margin_type %}
+{%- if (item.discount_percentage and item.discount_percentage > 0.0) or item.margin_type %}
 <ScontoMaggiorazione>
   {%- if item.discount_percentage > 0.0 %}
   <Tipo>SC</Tipo>