diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index 76c57ae873d..9664ed67498 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -1136,7 +1136,9 @@ class StockEntry(StockController):
 						"qty": row.transfer_qty * -1,
 					}
 				).update_serial_and_batch_entries()
-			elif not row.serial_and_batch_bundle:
+			elif not row.serial_and_batch_bundle and frappe.get_single_value(
+				"Stock Settings", "auto_create_serial_and_batch_bundle_for_outward"
+			):
 				bundle_doc = SerialBatchCreation(
 					{
 						"item_code": row.item_code,
diff --git a/erpnext/stock/serial_batch_bundle.py b/erpnext/stock/serial_batch_bundle.py
index db9cf422b5f..2ee85fc2c24 100644
--- a/erpnext/stock/serial_batch_bundle.py
+++ b/erpnext/stock/serial_batch_bundle.py
@@ -259,7 +259,7 @@ class SerialBatchBundle:
 			and not self.sle.serial_and_batch_bundle
 			and self.item_details.has_batch_no == 1
 			and (
-				self.item_details.create_new_batch
+				(self.item_details.create_new_batch and self.sle.actual_qty > 0)
 				or (
 					frappe.db.get_single_value(
 						"Stock Settings", "auto_create_serial_and_batch_bundle_for_outward"