From 9c5f9218b5d977b438c66aaac42fa9ecfd35a11d Mon Sep 17 00:00:00 2001
From: Rohit Waghchaure <rohitw1991@gmail.com>
Date: Wed, 10 Jun 2026 22:35:15 +0530
Subject: [PATCH] refactor: stock reservation feature

---
 erpnext/controllers/selling_controller.py     |  45 +++-
 .../production_plan/services/reservation.py   |  82 ++++---
 .../production_plan/test_production_plan.py   |  68 ++++++
 .../work_order/services/required_items.py     |  10 +-
 .../{stock_reservation.py => reservation.py}  |  28 ++-
 .../doctype/work_order/test_work_order.py     | 131 ++++++++++
 .../doctype/work_order/work_order.py          |  20 +-
 erpnext/selling/doctype/sales_order/mapper.py |  27 ++-
 .../doctype/sales_order/sales_order.py        |  14 +-
 .../{stock_reservation.py => reservation.py}  |   2 +-
 .../purchase_receipt/purchase_receipt.py      |   6 +-
 .../{stock_reservation.py => reservation.py}  |   2 +-
 .../stock/doctype/stock_entry/stock_entry.py  |  18 +-
 .../stock_reservation_entry.py                |   2 +-
 .../test_stock_reservation_entry.py           | 227 +++++++++++++++++-
 15 files changed, 599 insertions(+), 83 deletions(-)
 rename erpnext/manufacturing/doctype/work_order/services/{stock_reservation.py => reservation.py} (94%)
 rename erpnext/selling/doctype/sales_order/services/{stock_reservation.py => reservation.py} (99%)
 rename erpnext/stock/doctype/purchase_receipt/services/{stock_reservation.py => reservation.py} (98%)

diff --git a/erpnext/controllers/selling_controller.py b/erpnext/controllers/selling_controller.py
index e30b3384129..5be5d5dfdff 100644
--- a/erpnext/controllers/selling_controller.py
+++ b/erpnext/controllers/selling_controller.py
@@ -984,9 +984,14 @@ class SellingController(StockController):
 
 					qty_can_be_deliver = 0
 					if sre_doc.reservation_based_on == "Serial and Batch":
-						sbb = frappe.get_doc("Serial and Batch Bundle", item.serial_and_batch_bundle)
+						# Delivered serial/batch may live in a Serial and Batch Bundle or directly in the
+						# row's serial_no/batch_no fields (use_serial_batch_fields). Read from whichever is
+						# present so this never crashes on a missing bundle.
+						(
+							delivered_serial_nos,
+							delivered_batch_qty,
+						) = get_delivered_serial_batch_for_reservation(item)
 						if sre_doc.has_serial_no:
-							delivered_serial_nos = [d.serial_no for d in sbb.entries]
 							for entry in sre_doc.sb_entries:
 								if entry.serial_no in delivered_serial_nos:
 									entry.delivered_qty = 1  # Qty will always be 0 or 1 for Serial No.
@@ -994,16 +999,16 @@ class SellingController(StockController):
 									qty_can_be_deliver += 1
 									delivered_serial_nos.remove(entry.serial_no)
 						else:
-							delivered_batch_qty = {d.batch_no: -1 * d.qty for d in sbb.entries}
 							for entry in sre_doc.sb_entries:
-								if entry.batch_no in delivered_batch_qty:
+								available_batch_qty = delivered_batch_qty.get(entry.batch_no, 0)
+								if available_batch_qty > 0:
 									delivered_qty = min(
-										(entry.qty - entry.delivered_qty), delivered_batch_qty[entry.batch_no]
+										(entry.qty - entry.delivered_qty), available_batch_qty
 									)
 									entry.delivered_qty += delivered_qty
 									entry.db_update()
 									qty_can_be_deliver += delivered_qty
-									delivered_batch_qty[entry.batch_no] -= delivered_qty
+									delivered_batch_qty[entry.batch_no] = available_batch_qty - delivered_qty
 					else:
 						# `Delivered Qty` should be less than or equal to `Reserved Qty`.
 						qty_can_be_deliver = min(
@@ -1179,3 +1184,31 @@ def get_serial_and_batch_bundle(child, parent, delivery_note_child=None):
 	child.db_set("serial_and_batch_bundle", doc.name)
 
 	return doc.name
+
+
+def get_delivered_serial_batch_for_reservation(item):
+	"""Serial nos and per-batch qty delivered by a stock row.
+
+	The detail may be stored in a Serial and Batch Bundle or directly in the row's
+	``serial_no``/``batch_no`` fields (``use_serial_batch_fields``). Reading from whichever is
+	present keeps the Stock Reservation Entry delivered-qty update independent of a bundle being
+	created -- delivering reserved serial/batch stock used to crash when the row had no bundle.
+	"""
+	serial_nos, batch_qty = [], {}
+
+	if item.get("serial_and_batch_bundle"):
+		bundle = frappe.get_doc("Serial and Batch Bundle", item.serial_and_batch_bundle)
+		for row in bundle.entries:
+			if row.serial_no:
+				serial_nos.append(row.serial_no)
+			if row.batch_no:
+				batch_qty[row.batch_no] = batch_qty.get(row.batch_no, 0) + abs(flt(row.qty))
+	else:
+		from erpnext.stock.doctype.serial_no.serial_no import get_serial_nos
+
+		if item.get("serial_no"):
+			serial_nos = get_serial_nos(item.serial_no)
+		if item.get("batch_no"):
+			batch_qty[item.batch_no] = abs(flt(item.get("stock_qty") or item.get("qty")))
+
+	return serial_nos, batch_qty
diff --git a/erpnext/manufacturing/doctype/production_plan/services/reservation.py b/erpnext/manufacturing/doctype/production_plan/services/reservation.py
index 73a0c89990e..ee2a1bceb34 100644
--- a/erpnext/manufacturing/doctype/production_plan/services/reservation.py
+++ b/erpnext/manufacturing/doctype/production_plan/services/reservation.py
@@ -116,17 +116,57 @@ def _sub_assembly_reserved_filter(table, child, item_code, warehouse):
 	)
 
 
+class ProductionPlanStockReservation:
+	"""Reservation lifecycle for a Production Plan.
+
+	A Production Plan reserves stock for two of its child tables: the sub-assembly
+	items it will manufacture and the raw materials of its material-request rows
+	(see ``_RESERVATION_TABLES``). On submit the rows are reserved; on cancel the
+	reservations are released.
+
+	The reserved-qty *query* helpers in this module
+	(``get_reserved_qty_for_production_plan`` etc.) are read-only and answer "how
+	much is reserved?" for bins and reports, so they stay module-level functions
+	rather than methods, mirroring the engine's own query helpers.
+	"""
+
+	def __init__(self, doc):
+		self.doc = doc
+
+	def reserve(self, items: str | list | None = None, table_name: str | None = None, notify: bool = False):
+		"""Reserve (docstatus 1) or release (docstatus 2) stock for the plan's tables."""
+		if items and isinstance(items, str):
+			items = parse_json(items)
+
+		for child_table_name, kwargs in _RESERVATION_TABLES.items():
+			if table_name and table_name != child_table_name:
+				continue
+			self._reserve_or_cancel_plan_table(items, kwargs)
+
+		self.doc.reload()
+
+	def _reserve_or_cancel_plan_table(self, items, kwargs):
+		sre = StockReservation(self.doc, items=items, kwargs=kwargs)
+		if self.doc.docstatus == 1:
+			if sre.make_stock_reservation_entries():
+				frappe.msgprint(_("Stock Reservation Entries Created"), alert=True)
+		elif self.doc.docstatus == 2:
+			sre.cancel_stock_reservation_entries()
+
+	def cancel(self, sre_list: str | list | None = None):
+		"""Cancel specific (or all) Stock Reservation Entries held by the plan."""
+		StockReservation(self.doc).cancel_stock_reservation_entries(sre_list)
+		self.doc.reload()
+
+
 @frappe.whitelist()
 def make_stock_reservation_entries(
 	doc: str | Document, items: str | list | None = None, table_name: str | None = None, notify: bool = False
 ):
 	"""Whitelisted entry point: verify Production Plan write access, then reserve stock."""
-	if isinstance(doc, str):
-		doc = parse_json(doc)
-		doc = frappe.get_doc("Production Plan", doc.get("name"))
-
+	doc = _load_production_plan(doc)
 	frappe.has_permission("Production Plan", "write", doc=doc, throw=True)
-	reserve_stock_for_production_plan(doc, items=items, table_name=table_name, notify=notify)
+	ProductionPlanStockReservation(doc).reserve(items=items, table_name=table_name, notify=notify)
 
 
 def reserve_stock_for_production_plan(
@@ -134,35 +174,19 @@ def reserve_stock_for_production_plan(
 ):
 	"""Reserve stock for a Production Plan. Internal: no permission check (also called
 	from the Production Plan submit/cancel lifecycle)."""
-	if items and isinstance(items, str):
-		items = parse_json(items)
-
-	for child_table_name, kwargs in _RESERVATION_TABLES.items():
-		if table_name and table_name != child_table_name:
-			continue
-		_reserve_or_cancel_plan_table(doc, items, kwargs)
-
-	doc.reload()
-
-
-def _reserve_or_cancel_plan_table(doc, items, kwargs):
-	sre = StockReservation(doc, items=items, kwargs=kwargs)
-	if doc.docstatus == 1:
-		if sre.make_stock_reservation_entries():
-			frappe.msgprint(_("Stock Reservation Entries Created"), alert=True)
-	elif doc.docstatus == 2:
-		sre.cancel_stock_reservation_entries()
+	ProductionPlanStockReservation(doc).reserve(items=items, table_name=table_name, notify=notify)
 
 
 @frappe.whitelist()
 def cancel_stock_reservation_entries(doc: str | Document, sre_list: str | list):
 	"""Whitelisted entry point: verify Production Plan write access, then cancel reservations."""
+	doc = _load_production_plan(doc)
+	frappe.has_permission("Production Plan", "write", doc=doc, throw=True)
+	ProductionPlanStockReservation(doc).cancel(sre_list)
+
+
+def _load_production_plan(doc: str | Document) -> Document:
 	if isinstance(doc, str):
 		doc = parse_json(doc)
 		doc = frappe.get_doc("Production Plan", doc.get("name"))
-
-	frappe.has_permission("Production Plan", "write", doc=doc, throw=True)
-	sre = StockReservation(doc)
-	sre.cancel_stock_reservation_entries(sre_list)
-
-	doc.reload()
+	return doc
diff --git a/erpnext/manufacturing/doctype/production_plan/test_production_plan.py b/erpnext/manufacturing/doctype/production_plan/test_production_plan.py
index a65e317904d..8253e420f1a 100644
--- a/erpnext/manufacturing/doctype/production_plan/test_production_plan.py
+++ b/erpnext/manufacturing/doctype/production_plan/test_production_plan.py
@@ -2322,6 +2322,74 @@ class TestProductionPlan(ERPNextTestSuite):
 		self.assertEqual(len(reserved_entries), 0)
 		frappe.db.set_single_value("Stock Settings", "enable_stock_reservation", 0)
 
+	def test_stock_reservation_restored_on_work_order_cancel(self):
+		# Spec #5 (cancellation path): when a Work Order created from a Production Plan is cancelled,
+		# the reservation that was transferred PP -> WO must flow back to the still-open Production
+		# Plan, not silently vanish.
+		from erpnext.manufacturing.doctype.bom.test_bom import create_nested_bom
+
+		frappe.db.set_single_value("Stock Settings", "enable_stock_reservation", 1)
+		try:
+			bom_tree = {
+				"FG For SR Cancel": {"Sub Assembly For SR Cancel 1": {"Raw Material For SR Cancel 1": {}}}
+			}
+			parent_bom = create_nested_bom(bom_tree, prefix="")
+			warehouse = "_Test Warehouse - _TC"
+
+			# Plenty of stock so the Production Plan reserves everything directly on submit.
+			for item_code in ["Sub Assembly For SR Cancel 1", "Raw Material For SR Cancel 1"]:
+				make_stock_entry(item_code=item_code, target=warehouse, qty=20, basic_rate=100)
+
+			plan = create_production_plan(
+				item_code=parent_bom.item,
+				planned_qty=10,
+				skip_available_sub_assembly_item=1,
+				ignore_existing_ordered_qty=1,
+				do_not_submit=1,
+				warehouse=warehouse,
+				sub_assembly_warehouse=warehouse,
+				for_warehouse=warehouse,
+				reserve_stock=1,
+			)
+			plan.get_sub_assembly_items()
+			plan.set("mr_items", [])
+			for d in get_items_for_material_requests(plan.as_dict()):
+				plan.append("mr_items", d)
+			plan.save()
+			plan.submit()
+
+			def pp_reserved():
+				return sum(
+					r.reserved_qty
+					for r in StockReservation(plan).get_reserved_entries("Production Plan", plan.name)
+				)
+
+			reserved_before = pp_reserved()
+			self.assertGreater(reserved_before, 0, "Production Plan should reserve stock on submit")
+
+			plan.make_work_order()
+			work_orders = frappe.get_all("Work Order", filters={"production_plan": plan.name}, pluck="name")
+			work_orders = list(set(work_orders))
+			for wo_name in work_orders:
+				wo_doc = frappe.get_doc("Work Order", wo_name)
+				wo_doc.source_warehouse = warehouse
+				wo_doc.wip_warehouse = warehouse
+				wo_doc.fg_warehouse = warehouse
+				wo_doc.submit()
+
+			# After all Work Orders are submitted the reservation has fully transferred off the plan.
+			self.assertEqual(pp_reserved(), 0, "Reservation should transfer PP -> WO on submit")
+
+			# Cancelling the Work Orders must return the reservation to the Production Plan.
+			for wo_name in work_orders:
+				frappe.get_doc("Work Order", wo_name).cancel()
+
+			self.assertEqual(
+				pp_reserved(), reserved_before, "Cancelling the Work Order must restore the PP reservation"
+			)
+		finally:
+			frappe.db.set_single_value("Stock Settings", "enable_stock_reservation", 0)
+
 	def test_stock_reservation_of_serial_nos_against_production_plan(self):
 		from erpnext.buying.doctype.purchase_order.mapper import make_purchase_receipt
 		from erpnext.manufacturing.doctype.bom.test_bom import create_nested_bom
diff --git a/erpnext/manufacturing/doctype/work_order/services/required_items.py b/erpnext/manufacturing/doctype/work_order/services/required_items.py
index 61d718065d3..26c9cf155b1 100644
--- a/erpnext/manufacturing/doctype/work_order/services/required_items.py
+++ b/erpnext/manufacturing/doctype/work_order/services/required_items.py
@@ -14,8 +14,8 @@ from pypika import functions as fn
 
 from erpnext.manufacturing.doctype.bom.bom import get_bom_items_as_dict
 from erpnext.manufacturing.doctype.work_order.mapper import check_if_scrap_warehouse_mandatory
-from erpnext.manufacturing.doctype.work_order.services.stock_reservation import (
-	StockReservationService,
+from erpnext.manufacturing.doctype.work_order.services.reservation import (
+	WorkOrderStockReservation,
 	get_consumed_qty,
 	get_row_wise_serial_batch,
 )
@@ -44,7 +44,7 @@ class RequiredItemsService:
 			# update in bin
 			self.update_reserved_qty_for_production()
 
-		StockReservationService(self.doc).validate_reserved_qty()
+		WorkOrderStockReservation(self.doc).validate_reserved_qty()
 
 	def update_reserved_qty_for_production(self, items=None):
 		"""update reserved_qty_for_production in bins"""
@@ -142,7 +142,7 @@ class RequiredItemsService:
 			transferred_qty = transferred_items.get(row.item_code) or 0.0
 			row.db_set("transferred_qty", transferred_qty, update_modified=False)
 			if self.doc.reserve_stock:
-				StockReservationService(self.doc).update_qty_in_stock_reservation(
+				WorkOrderStockReservation(self.doc).update_qty_in_stock_reservation(
 					row, transferred_qty, row_wise_serial_batch
 				)
 
@@ -189,7 +189,7 @@ class RequiredItemsService:
 				continue
 
 			warehouse = wip_warehouse or item.source_warehouse
-			StockReservationService(self.doc).update_consumed_qty_in_stock_reservation(
+			WorkOrderStockReservation(self.doc).update_consumed_qty_in_stock_reservation(
 				item, consumed_qty, warehouse
 			)
 
diff --git a/erpnext/manufacturing/doctype/work_order/services/stock_reservation.py b/erpnext/manufacturing/doctype/work_order/services/reservation.py
similarity index 94%
rename from erpnext/manufacturing/doctype/work_order/services/stock_reservation.py
rename to erpnext/manufacturing/doctype/work_order/services/reservation.py
index a3539dd7c03..6af3a98e8ca 100644
--- a/erpnext/manufacturing/doctype/work_order/services/stock_reservation.py
+++ b/erpnext/manufacturing/doctype/work_order/services/reservation.py
@@ -3,7 +3,7 @@
 
 """Stock reservation logic for Work Order.
 
-Extracted from work_order.py. ``StockReservationService`` wraps a Work Order
+Extracted from work_order.py. ``WorkOrderStockReservation`` wraps a Work Order
 document (composition) and owns the reservation-related behaviour; the
 module-level helpers are reused by the controller and by Production Plan.
 work_order.py re-exports them to preserve whitelist dotted-paths and imports.
@@ -51,7 +51,7 @@ _SERIAL_BATCH_FIELDS = [
 ]
 
 
-class StockReservationService:
+class WorkOrderStockReservation:
 	def __init__(self, doc):
 		self.doc = doc
 
@@ -94,6 +94,11 @@ class StockReservationService:
 		self.doc.db_set("status", self.doc.get_status())
 
 	def update_qty_in_stock_reservation(self, row, transferred_qty, row_wise_serial_batch):
+		# `transferred_qty` is the absolute qty transferred to WIP recomputed from submitted stock
+		# entries, so this method must also be able to *lower* it (e.g. when a transfer is cancelled).
+		# A fully-transferred entry is "Closed"; it must stay eligible here, otherwise cancelling the
+		# transfer can never reset its transferred_qty and the Store reservation is lost. Only truly
+		# cancelled entries (docstatus 2) are excluded.
 		names = frappe.get_all(
 			"Stock Reservation Entry",
 			filters={
@@ -101,9 +106,10 @@ class StockReservationService:
 				"item_code": row.item_code,
 				"voucher_detail_no": row.name,
 				"warehouse": row.source_warehouse,
-				"status": ("not in", ["Closed", "Cancelled", "Completed"]),
+				"docstatus": 1,
 			},
 			pluck="name",
+			order_by="creation",
 		)
 		for name in names:
 			transferred_qty = self._apply_transferred_qty(name, transferred_qty, row_wise_serial_batch)
@@ -424,14 +430,26 @@ class StockReservationService:
 		)
 
 	def cancel_reserved_qty_for_wip_and_fg(self, ste_doc):
+		# Reservations created by this stock entry are identified by `from_voucher_no`. They can be
+		# held against the Work Order *or* against another voucher -- e.g. the finished good of an
+		# SO-linked Work Order is reserved against the Sales Order. They must be cancelled directly:
+		# routing through the Work-Order-scoped `cancel_stock_reservation_entries` would silently skip
+		# any entry whose `voucher_type`/`voucher_no` is not the Work Order, leaving the finished good
+		# reserved and making the manufacture impossible to cancel (NegativeStockError).
+		cancelled = False
 		for row in ste_doc.items:
 			sre_list = frappe.get_all(
 				"Stock Reservation Entry",
 				filters={"from_voucher_no": ste_doc.name, "from_voucher_detail_no": row.name, "docstatus": 1},
 				pluck="name",
 			)
-			if sre_list:
-				unreserve_stock_for_work_order(self.doc, sre_list)
+			for name in sre_list:
+				frappe.get_doc("Stock Reservation Entry", name).cancel()
+				cancelled = True
+
+		if cancelled:
+			self.doc.reload()
+			self.doc.db_set("status", self.doc.get_status())
 
 	def release_reserved_qty_for_subcontract_transfer(self):
 		"""Free this Work Order's own reservation for items sent to a subcontractor.
diff --git a/erpnext/manufacturing/doctype/work_order/test_work_order.py b/erpnext/manufacturing/doctype/work_order/test_work_order.py
index aec57252c23..6182756ef4e 100644
--- a/erpnext/manufacturing/doctype/work_order/test_work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/test_work_order.py
@@ -3417,6 +3417,137 @@ class TestWorkOrder(ERPNextTestSuite):
 
 		self.assertRaises(frappe.ValidationError, transfer_entry.submit)
 
+	def test_stock_reservation_moves_from_store_to_wip_on_transfer(self):
+		# Spec #7: a Material Transfer for Manufacture (Store -> WIP) for a reserve_stock Work Order
+		# must move the reservation from the Store warehouse to the WIP warehouse; cancelling the
+		# transfer must move it back.
+		from erpnext.stock.doctype.stock_entry.stock_entry_utils import (
+			make_stock_entry as make_stock_entry_test_record,
+		)
+
+		frappe.db.set_single_value("Stock Settings", "enable_stock_reservation", 1)
+		try:
+			store = "Stores - _TC"
+			wip = "Work In Progress - _TC"
+			fg = make_item("Test SR Move FG", {"is_stock_item": 1}).name
+			rm = make_item("Test SR Move RM", {"is_stock_item": 1}).name
+
+			bom = make_bom(item=fg, raw_materials=[rm], source_warehouse=store, do_not_submit=True)
+			bom.save()
+			bom.submit()
+			make_stock_entry_test_record(item_code=rm, target=store, qty=10, basic_rate=100)
+
+			wo = make_wo_order_test_record(
+				production_item=fg,
+				qty=10,
+				bom_no=bom.name,
+				reserve_stock=1,
+				source_warehouse=store,
+				wip_warehouse=wip,
+				fg_warehouse=wip,
+				do_not_save=True,
+			)
+			wo.save()
+			wo.submit()
+
+			def reserved_in(warehouse):
+				return sum(
+					flt(r.reserved_qty) - flt(r.transferred_qty) - flt(r.delivered_qty) - flt(r.consumed_qty)
+					for r in frappe.get_all(
+						"Stock Reservation Entry",
+						filters={
+							"voucher_no": wo.name,
+							"item_code": rm,
+							"warehouse": warehouse,
+							"docstatus": 1,
+						},
+						fields=["reserved_qty", "transferred_qty", "delivered_qty", "consumed_qty"],
+					)
+				)
+
+			self.assertEqual(reserved_in(store), 10, "RM should be reserved in Store after WO submit")
+			self.assertEqual(reserved_in(wip), 0)
+
+			# Transfer Store -> WIP.
+			se = frappe.get_doc(make_stock_entry(wo.name, "Material Transfer for Manufacture", 10))
+			se.submit()
+
+			self.assertEqual(reserved_in(store), 0, "Store reservation should be freed after transfer")
+			self.assertEqual(reserved_in(wip), 10, "Reservation should move to WIP after transfer")
+
+			# Cancel the transfer -> reservation returns to Store.
+			se.cancel()
+			self.assertEqual(reserved_in(store), 10, "Cancelling transfer must restore Store reservation")
+			self.assertEqual(reserved_in(wip), 0)
+		finally:
+			frappe.db.set_single_value("Stock Settings", "enable_stock_reservation", 0)
+
+	def test_sales_order_linked_work_order_reserves_finished_good(self):
+		# Spec #8: when a Work Order is linked to a Sales Order, manufacturing the finished good must
+		# reserve it against that Sales Order; cancelling the manufacture must release the reservation.
+		from erpnext.stock.doctype.stock_entry.stock_entry_utils import (
+			make_stock_entry as make_stock_entry_test_record,
+		)
+
+		frappe.db.set_single_value("Stock Settings", "enable_stock_reservation", 1)
+		try:
+			warehouse = "_Test Warehouse - _TC"
+			wip = "_Test Warehouse 1 - _TC"
+			fg = make_item("Test SR SO-WO FG", {"is_stock_item": 1}).name
+			rm = make_item("Test SR SO-WO RM", {"is_stock_item": 1}).name
+
+			bom = make_bom(item=fg, raw_materials=[rm], source_warehouse=warehouse, do_not_submit=True)
+			bom.save()
+			bom.submit()
+			make_stock_entry_test_record(item_code=rm, target=warehouse, qty=10, basic_rate=100)
+
+			# The finished good is reserved in the Sales Order item's warehouse, so the WO must produce
+			# the FG into that same warehouse.
+			so = make_sales_order(item_code=fg, warehouse=warehouse, qty=10, rate=500)
+
+			wo = make_wo_order_test_record(
+				production_item=fg,
+				qty=10,
+				bom_no=bom.name,
+				sales_order=so.name,
+				reserve_stock=1,
+				source_warehouse=warehouse,
+				wip_warehouse=wip,
+				fg_warehouse=warehouse,
+				do_not_save=True,
+			)
+			wo.save()
+			wo.submit()
+
+			# Transfer the raw material to WIP, then manufacture the finished good.
+			transfer = frappe.get_doc(make_stock_entry(wo.name, "Material Transfer for Manufacture", 10))
+			transfer.submit()
+			manufacture = frappe.get_doc(make_stock_entry(wo.name, "Manufacture", 10))
+			manufacture.submit()
+
+			def so_fg_reserved():
+				return sum(
+					flt(r.reserved_qty)
+					for r in frappe.get_all(
+						"Stock Reservation Entry",
+						filters={
+							"voucher_type": "Sales Order",
+							"voucher_no": so.name,
+							"item_code": fg,
+							"docstatus": 1,
+						},
+						fields=["reserved_qty"],
+					)
+				)
+
+			self.assertEqual(so_fg_reserved(), 10, "Finished good should be reserved against the Sales Order")
+
+			# Cancelling the manufacture releases the finished-good reservation.
+			manufacture.cancel()
+			self.assertEqual(so_fg_reserved(), 0, "Cancelling manufacture must release the SO reservation")
+		finally:
+			frappe.db.set_single_value("Stock Settings", "enable_stock_reservation", 0)
+
 	def test_send_to_subcontractor_can_consume_work_order_reserved_stock(self):
 		from erpnext.buying.doctype.purchase_order.mapper import make_subcontracting_order
 		from erpnext.controllers.subcontracting_controller import make_rm_stock_entry
diff --git a/erpnext/manufacturing/doctype/work_order/work_order.py b/erpnext/manufacturing/doctype/work_order/work_order.py
index e8bc3ac32e1..aaa82c9bf74 100644
--- a/erpnext/manufacturing/doctype/work_order/work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/work_order.py
@@ -46,11 +46,8 @@ from erpnext.manufacturing.doctype.work_order.services.operations import (
 from erpnext.manufacturing.doctype.work_order.services.required_items import (
 	RequiredItemsService,
 )
-from erpnext.manufacturing.doctype.work_order.services.status import (
-	StatusService,
-)
-from erpnext.manufacturing.doctype.work_order.services.stock_reservation import (
-	StockReservationService,
+from erpnext.manufacturing.doctype.work_order.services.reservation import (
+	WorkOrderStockReservation,
 	cancel_stock_reservation_entries,
 	get_consumed_qty,
 	get_reserved_qty_for_production,
@@ -58,6 +55,9 @@ from erpnext.manufacturing.doctype.work_order.services.stock_reservation import
 	get_sre_details,
 	make_stock_reservation_entries,
 )
+from erpnext.manufacturing.doctype.work_order.services.status import (
+	StatusService,
+)
 from erpnext.stock.doctype.batch.batch import make_batch
 from erpnext.stock.doctype.item.item import validate_end_of_life
 from erpnext.stock.doctype.serial_no.serial_no import get_available_serial_nos
@@ -297,8 +297,8 @@ class WorkOrder(Document):
 		self.status = self.get_status()
 		self.validate_workstation_type()
 		self.reset_use_multi_level_bom()
-		StockReservationService(self).set_reserve_stock()
-		StockReservationService(self).validate_fg_warehouse_for_reservation()
+		WorkOrderStockReservation(self).set_reserve_stock()
+		WorkOrderStockReservation(self).validate_fg_warehouse_for_reservation()
 		self.validate_dates()
 
 		if self.source_warehouse:
@@ -311,7 +311,7 @@ class WorkOrder(Document):
 		):
 			self.set_required_items(reset_only_qty=len(self.get("required_items")))
 
-		StockReservationService(self).enable_auto_reserve_stock()
+		WorkOrderStockReservation(self).enable_auto_reserve_stock()
 		self.validate_operations_sequence()
 		self.validate_subcontracting_inward_order()
 
@@ -625,7 +625,7 @@ class WorkOrder(Document):
 		self.create_job_card_from_wo()
 
 		if self.reserve_stock:
-			StockReservationService(self).update_stock_reservation()
+			WorkOrderStockReservation(self).update_stock_reservation()
 
 		self.update_subcontracting_inward_order_received_items()
 
@@ -649,7 +649,7 @@ class WorkOrder(Document):
 		self.update_reserved_qty_for_production()
 
 		if self.reserve_stock:
-			StockReservationService(self).update_stock_reservation()
+			WorkOrderStockReservation(self).update_stock_reservation()
 
 		self.update_subcontracting_inward_order_received_items()
 
diff --git a/erpnext/selling/doctype/sales_order/mapper.py b/erpnext/selling/doctype/sales_order/mapper.py
index 6a23490c482..086e6c5b6fd 100644
--- a/erpnext/selling/doctype/sales_order/mapper.py
+++ b/erpnext/selling/doctype/sales_order/mapper.py
@@ -376,12 +376,27 @@ def make_delivery_note(
 				dn_item.qty = flt(sre.reserved_qty) / flt(dn_item.get("conversion_factor", 1))
 				dn_item.warehouse = sre.warehouse
 
-				if (
-					not use_serial_batch_fields
-					and sre.reservation_based_on == "Serial and Batch"
-					and (sre.has_serial_no or sre.has_batch_no)
-				):
-					dn_item.serial_and_batch_bundle = get_ssb_bundle_for_voucher([sre]).name
+				if sre.reservation_based_on == "Serial and Batch" and (sre.has_serial_no or sre.has_batch_no):
+					if use_serial_batch_fields:
+						# Carry the reserved serial/batch in the row fields. A single field can't hold
+						# multiple batches, so fall back to a bundle in that case.
+						dn_item.use_serial_batch_fields = 1
+						sb_entries = frappe.get_all(
+							"Serial and Batch Entry",
+							filters={"parent": sre.name},
+							fields=["serial_no", "batch_no"],
+						)
+						serial_nos = [d.serial_no for d in sb_entries if d.serial_no]
+						batch_nos = list({d.batch_no for d in sb_entries if d.batch_no})
+						if serial_nos:
+							dn_item.serial_no = "\n".join(serial_nos)
+						if len(batch_nos) == 1:
+							dn_item.batch_no = batch_nos[0]
+						elif len(batch_nos) > 1:
+							dn_item.use_serial_batch_fields = 0
+							dn_item.serial_and_batch_bundle = get_ssb_bundle_for_voucher([sre]).name
+					else:
+						dn_item.serial_and_batch_bundle = get_ssb_bundle_for_voucher([sre]).name
 
 				target_doc.append("items", dn_item)
 			# Correct rows index.
diff --git a/erpnext/selling/doctype/sales_order/sales_order.py b/erpnext/selling/doctype/sales_order/sales_order.py
index 437bbe1427d..c468b92f183 100755
--- a/erpnext/selling/doctype/sales_order/sales_order.py
+++ b/erpnext/selling/doctype/sales_order/sales_order.py
@@ -23,8 +23,8 @@ from erpnext.manufacturing.doctype.blanket_order.blanket_order import (
 )
 from erpnext.selling.doctype.customer.customer import check_credit_limit
 from erpnext.selling.doctype.sales_order.services.delivery_schedule import DeliveryScheduleService
+from erpnext.selling.doctype.sales_order.services.reservation import SalesOrderStockReservation
 from erpnext.selling.doctype.sales_order.services.status import StatusService
-from erpnext.selling.doctype.sales_order.services.stock_reservation import StockReservationService
 from erpnext.selling.doctype.sales_order.services.subcontracting import SubcontractingService
 from erpnext.stock.doctype.packed_item.packed_item import make_packing_list
 from erpnext.stock.doctype.stock_reservation_entry.stock_reservation_entry import has_reserved_stock
@@ -226,7 +226,7 @@ class SalesOrder(SellingController):
 		self.validate_for_items()
 		self.validate_warehouse()
 		self.validate_drop_ship()
-		StockReservationService(self).validate_reserved_stock()
+		SalesOrderStockReservation(self).validate_reserved_stock()
 		self.validate_serial_no_based_delivery()
 		validate_against_blanket_order(self)
 		validate_inter_company_party(
@@ -248,7 +248,7 @@ class SalesOrder(SellingController):
 
 		self.reset_default_field_value("set_warehouse", "items", "warehouse")
 		if not self.get("is_subcontracted"):
-			StockReservationService(self).enable_auto_reserve_stock()
+			SalesOrderStockReservation(self).enable_auto_reserve_stock()
 
 	def set_has_unit_price_items(self):
 		"""
@@ -542,7 +542,7 @@ class SalesOrder(SellingController):
 		StatusService(self).update_status(status)
 
 	def update_reserved_qty(self, so_item_rows=None):
-		StockReservationService(self).update_reserved_qty(so_item_rows)
+		SalesOrderStockReservation(self).update_reserved_qty(so_item_rows)
 
 	def on_update_after_submit(self):
 		self.calculate_commission()
@@ -652,7 +652,7 @@ class SalesOrder(SellingController):
 	@frappe.whitelist()
 	def has_unreserved_stock(self, table_name: str = "items") -> dict:
 		"""Returns unreserved qty per item if there is any unreserved item in the Sales Order."""
-		return StockReservationService(self).has_unreserved_stock(table_name)
+		return SalesOrderStockReservation(self).has_unreserved_stock(table_name)
 
 	@frappe.whitelist()
 	def create_stock_reservation_entries(
@@ -662,14 +662,14 @@ class SalesOrder(SellingController):
 		notify: bool = True,
 	) -> None:
 		"""Creates Stock Reservation Entries for Sales Order Items."""
-		StockReservationService(self).create_stock_reservation_entries(
+		SalesOrderStockReservation(self).create_stock_reservation_entries(
 			items_details, from_voucher_type, notify
 		)
 
 	@frappe.whitelist()
 	def cancel_stock_reservation_entries(self, sre_list: list | None = None, notify: bool = True) -> None:
 		"""Cancel Stock Reservation Entries for Sales Order Items."""
-		StockReservationService(self).cancel_stock_reservation_entries(sre_list, notify)
+		SalesOrderStockReservation(self).cancel_stock_reservation_entries(sre_list, notify)
 
 	def set_missing_values(self, for_validate=False):
 		super().set_missing_values(for_validate)
diff --git a/erpnext/selling/doctype/sales_order/services/stock_reservation.py b/erpnext/selling/doctype/sales_order/services/reservation.py
similarity index 99%
rename from erpnext/selling/doctype/sales_order/services/stock_reservation.py
rename to erpnext/selling/doctype/sales_order/services/reservation.py
index 3a7bf7347d6..b647cdcb82c 100644
--- a/erpnext/selling/doctype/sales_order/services/stock_reservation.py
+++ b/erpnext/selling/doctype/sales_order/services/reservation.py
@@ -15,7 +15,7 @@ from erpnext.stock.doctype.stock_reservation_entry.stock_reservation_entry impor
 from erpnext.stock.stock_balance import get_reserved_qty, update_bin_qty
 
 
-class StockReservationService:
+class SalesOrderStockReservation:
 	def __init__(self, doc):
 		self.doc = doc
 
diff --git a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
index 669e7ae47c8..0905b5b3b06 100644
--- a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
@@ -15,7 +15,9 @@ from erpnext.stock.doctype.purchase_receipt.services.billing_status import Billi
 from erpnext.stock.doctype.purchase_receipt.services.provisional_accounting import (
 	ProvisionalAccountingService,
 )
-from erpnext.stock.doctype.purchase_receipt.services.stock_reservation import StockReservationService
+from erpnext.stock.doctype.purchase_receipt.services.reservation import (
+	PurchaseReceiptStockReservation,
+)
 
 form_grid_templates = {"items": "templates/form_grid/item_grid.html"}
 
@@ -374,7 +376,7 @@ class PurchaseReceipt(BuyingController):
 		self.make_gl_entries()
 		self.repost_future_sle_and_gle()
 		self.set_consumed_qty_in_subcontract_order()
-		StockReservationService(self).reserve_stock()
+		PurchaseReceiptStockReservation(self).reserve_stock()
 		self.update_received_qty_if_from_pp()
 
 	def update_received_qty_if_from_pp(self):
diff --git a/erpnext/stock/doctype/purchase_receipt/services/stock_reservation.py b/erpnext/stock/doctype/purchase_receipt/services/reservation.py
similarity index 98%
rename from erpnext/stock/doctype/purchase_receipt/services/stock_reservation.py
rename to erpnext/stock/doctype/purchase_receipt/services/reservation.py
index c9cf00d9d0a..8141ebb9ee5 100644
--- a/erpnext/stock/doctype/purchase_receipt/services/stock_reservation.py
+++ b/erpnext/stock/doctype/purchase_receipt/services/reservation.py
@@ -10,7 +10,7 @@ from frappe.utils import get_datetime
 from erpnext.stock.doctype.stock_reservation_entry.stock_reservation_entry import StockReservation
 
 
-class StockReservationService:
+class PurchaseReceiptStockReservation:
 	def __init__(self, doc):
 		self.doc = doc
 
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index edcd829abf2..80552b7c25f 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -1061,8 +1061,8 @@ class StockEntry(StockController, SubcontractingInwardController):
 		return getattr(self, "_wo_doc", None)
 
 	def make_stock_reserve_for_wip_and_fg(self):
-		from erpnext.manufacturing.doctype.work_order.services.stock_reservation import (
-			StockReservationService,
+		from erpnext.manufacturing.doctype.work_order.services.reservation import (
+			WorkOrderStockReservation,
 		)
 
 		if self.is_stock_reserve_for_work_order():
@@ -1076,7 +1076,7 @@ class StockEntry(StockController, SubcontractingInwardController):
 			):
 				return
 
-			StockReservationService(pro_doc).set_reserved_qty_for_wip_and_fg(self)
+			WorkOrderStockReservation(pro_doc).set_reserved_qty_for_wip_and_fg(self)
 
 	def reserve_stock_for_subcontracting(self):
 		if self.purpose == "Send to Subcontractor" and frappe.get_value(
@@ -1103,8 +1103,8 @@ class StockEntry(StockController, SubcontractingInwardController):
 			)
 
 	def cancel_stock_reserve_for_wip_and_fg(self):
-		from erpnext.manufacturing.doctype.work_order.services.stock_reservation import (
-			StockReservationService,
+		from erpnext.manufacturing.doctype.work_order.services.reservation import (
+			WorkOrderStockReservation,
 		)
 
 		if self.is_stock_reserve_for_work_order():
@@ -1116,7 +1116,7 @@ class StockEntry(StockController, SubcontractingInwardController):
 			):
 				return
 
-			StockReservationService(pro_doc).cancel_reserved_qty_for_wip_and_fg(self)
+			WorkOrderStockReservation(pro_doc).cancel_reserved_qty_for_wip_and_fg(self)
 
 	def is_stock_reserve_for_work_order(self):
 		if (
@@ -1133,8 +1133,8 @@ class StockEntry(StockController, SubcontractingInwardController):
 		# purpose), so the owning Work Order is derived from the Subcontracting Order / Purchase Order
 		# that raised the transfer. Each such Work Order that reserves stock gets its reservation for
 		# the sent items released, so the negative-stock guard stops blocking the consumption.
-		from erpnext.manufacturing.doctype.work_order.services.stock_reservation import (
-			StockReservationService,
+		from erpnext.manufacturing.doctype.work_order.services.reservation import (
+			WorkOrderStockReservation,
 		)
 
 		if self.purpose != "Send to Subcontractor":
@@ -1142,7 +1142,7 @@ class StockEntry(StockController, SubcontractingInwardController):
 
 		for wo_name in self.get_reserved_work_orders_for_subcontracting():
 			pro_doc = frappe.get_doc("Work Order", wo_name)
-			StockReservationService(pro_doc).release_reserved_qty_for_subcontract_transfer()
+			WorkOrderStockReservation(pro_doc).release_reserved_qty_for_subcontract_transfer()
 
 	def get_reserved_work_orders_for_subcontracting(self):
 		job_cards = set()
diff --git a/erpnext/stock/doctype/stock_reservation_entry/stock_reservation_entry.py b/erpnext/stock/doctype/stock_reservation_entry/stock_reservation_entry.py
index 52a3c94b608..b19f8db2052 100644
--- a/erpnext/stock/doctype/stock_reservation_entry/stock_reservation_entry.py
+++ b/erpnext/stock/doctype/stock_reservation_entry/stock_reservation_entry.py
@@ -1587,7 +1587,7 @@ def create_stock_reservation_entries_for_so_items(
 ):
 	"""Creates Stock Reservation Entries for Sales Order Items."""
 
-	from erpnext.selling.doctype.sales_order.services.stock_reservation import get_unreserved_qty
+	from erpnext.selling.doctype.sales_order.services.reservation import get_unreserved_qty
 
 	if not from_voucher_type and (
 		sales_order.get("_action") == "submit"
diff --git a/erpnext/stock/doctype/stock_reservation_entry/test_stock_reservation_entry.py b/erpnext/stock/doctype/stock_reservation_entry/test_stock_reservation_entry.py
index cc125ea3b8e..790a50fbdc7 100644
--- a/erpnext/stock/doctype/stock_reservation_entry/test_stock_reservation_entry.py
+++ b/erpnext/stock/doctype/stock_reservation_entry/test_stock_reservation_entry.py
@@ -4,7 +4,7 @@
 from random import randint
 
 import frappe
-from frappe.utils import today
+from frappe.utils import flt, today
 
 from erpnext.selling.doctype.sales_order.mapper import create_pick_list, make_delivery_note
 from erpnext.selling.doctype.sales_order.test_sales_order import make_sales_order
@@ -313,6 +313,231 @@ class TestStockReservationEntry(ERPNextTestSuite):
 				for sre_detail in sre_details:
 					self.assertEqual(sre_detail.reserved_qty, sre_detail.delivered_qty)
 
+	@ERPNextTestSuite.change_settings(
+		"Stock Settings", {"enable_stock_reservation": 1, "allow_partial_reservation": 1}
+	)
+	def test_reservation_restored_on_delivery_note_cancel(self) -> None:
+		# Cancellation path (spec #1): delivering reserved stock via a Delivery Note marks the SRE
+		# delivered; cancelling that Delivery Note must restore the reservation (delivered_qty -> 0),
+		# otherwise the reserved stock is silently lost.
+		so = make_sales_order(
+			item_code=self.sr_item.name,
+			warehouse=self.warehouse,
+			qty=10,
+			rate=100,
+			do_not_submit=True,
+		)
+		so.reserve_stock = 1
+		so.items[0].reserve_stock = 1
+		so.save()
+		so.submit()
+		so.create_stock_reservation_entries()
+
+		def sre():
+			return frappe.get_all(
+				"Stock Reservation Entry",
+				filters={"voucher_no": so.name, "item_code": self.sr_item.name, "docstatus": 1},
+				fields=["reserved_qty", "delivered_qty", "status"],
+			)[0]
+
+		self.assertEqual(sre().reserved_qty, 10)
+		self.assertEqual(sre().delivered_qty, 0)
+
+		dn = make_delivery_note(so.name)
+		dn.submit()
+		after = sre()
+		self.assertEqual(after.delivered_qty, 10, "Delivery Note should mark the reservation delivered")
+		self.assertEqual(after.status, "Delivered")
+
+		dn.cancel()
+		restored = sre()
+		self.assertEqual(
+			restored.delivered_qty, 0, "Cancelling the Delivery Note must restore the reservation"
+		)
+		self.assertEqual(restored.status, "Reserved")
+
+	@ERPNextTestSuite.change_settings(
+		"Stock Settings", {"enable_stock_reservation": 1, "allow_negative_stock": 0}
+	)
+	def test_reserved_stock_cannot_be_delivered_against_a_different_sales_order(self) -> None:
+		# Spec #2: stock reserved for one Sales Order must not be deliverable through a Delivery Note
+		# raised for a different Sales Order. Pin allow_negative_stock off so the guard is enforced
+		# regardless of any global Stock Settings left enabled by other tests in the suite.
+		from erpnext.stock.stock_ledger import NegativeStockError
+
+		item_doc = make_item(properties={"is_stock_item": 1, "valuation_rate": 100})
+		item = item_doc.name
+		warehouse = self.warehouse
+		create_material_receipt(items={item: item_doc}, warehouse=warehouse, qty=10)
+
+		# SO-A reserves the entire available stock.
+		so_a = make_sales_order(item_code=item, warehouse=warehouse, qty=10, rate=100, do_not_submit=True)
+		so_a.reserve_stock = 1
+		so_a.items[0].reserve_stock = 1
+		so_a.save()
+		so_a.submit()
+		so_a.create_stock_reservation_entries()
+		self.assertTrue(has_reserved_stock("Sales Order", so_a.name))
+
+		# SO-B (a different order) for the same item must not be able to deliver the reserved stock.
+		so_b = make_sales_order(item_code=item, warehouse=warehouse, qty=10, rate=100, do_not_submit=True)
+		so_b.save()
+		so_b.submit()
+		dn = make_delivery_note(so_b.name)
+		dn.save()
+		self.assertRaises(NegativeStockError, dn.submit)
+
+	@ERPNextTestSuite.change_settings("Stock Settings", {"enable_stock_reservation": 1})
+	def test_stock_can_be_unreserved_and_reserved_against_another_sales_order(self) -> None:
+		# Spec #3: a user can manually unreserve stock from one Sales Order and reserve the same stock
+		# against another Sales Order.
+		item_doc = make_item(properties={"is_stock_item": 1, "valuation_rate": 100})
+		item = item_doc.name
+		warehouse = self.warehouse
+		create_material_receipt(items={item: item_doc}, warehouse=warehouse, qty=10)
+
+		so_a = make_sales_order(item_code=item, warehouse=warehouse, qty=10, rate=100, do_not_submit=True)
+		so_a.reserve_stock = 1
+		so_a.items[0].reserve_stock = 1
+		so_a.save()
+		so_a.submit()
+		so_a.create_stock_reservation_entries()
+		self.assertTrue(has_reserved_stock("Sales Order", so_a.name))
+
+		so_b = make_sales_order(item_code=item, warehouse=warehouse, qty=10, rate=100, do_not_submit=True)
+		so_b.reserve_stock = 1
+		so_b.items[0].reserve_stock = 1
+		so_b.save()
+		so_b.submit()
+
+		# With all stock reserved by SO-A, SO-B cannot reserve anything yet.
+		so_b.create_stock_reservation_entries()
+		self.assertFalse(has_reserved_stock("Sales Order", so_b.name))
+
+		# Manually unreserve SO-A, then SO-B can reserve the freed stock.
+		cancel_stock_reservation_entries("Sales Order", so_a.name)
+		self.assertFalse(has_reserved_stock("Sales Order", so_a.name))
+
+		so_b.create_stock_reservation_entries()
+		self.assertTrue(has_reserved_stock("Sales Order", so_b.name))
+
+	@ERPNextTestSuite.change_settings(
+		"Stock Settings",
+		{
+			"enable_stock_reservation": 1,
+			"auto_reserve_serial_and_batch": 1,
+			"pick_serial_and_batch_based_on": "FIFO",
+		},
+	)
+	def test_serial_and_batch_reservation_can_be_unreserved(self) -> None:
+		# Spec #9 (cancellation): an auto-reserved serial/batch Sales Order reservation pins specific
+		# serial/batch entries on the SRE (`sb_entries`). Manually unreserving it must cancel the SRE
+		# (and its pinned entries) and free the stock for another order.
+		items_details = create_items()
+		create_material_receipt(items_details, self.warehouse, qty=10)
+
+		serial_item = next(
+			name for name, p in items_details.items() if p.get("has_serial_no") and not p.get("has_batch_no")
+		)
+		batch_item = next(
+			name for name, p in items_details.items() if p.get("has_batch_no") and not p.get("has_serial_no")
+		)
+
+		item_list = [
+			{"item_code": serial_item, "warehouse": self.warehouse, "qty": 10, "rate": 100},
+			{"item_code": batch_item, "warehouse": self.warehouse, "qty": 10, "rate": 100},
+		]
+		so = make_sales_order(item_list=item_list, warehouse=self.warehouse)
+		so.create_stock_reservation_entries()
+		so.load_from_db()
+
+		def sre_row(so_item):
+			return frappe.get_all(
+				"Stock Reservation Entry",
+				filters={"voucher_no": so.name, "voucher_detail_no": so_item, "docstatus": 1},
+				fields=["name", "reserved_qty", "reservation_based_on"],
+			)
+
+		# Each item is reserved on a Serial-and-Batch basis with the specific entries pinned.
+		self.assertTrue(has_reserved_stock("Sales Order", so.name))
+		for item in so.items:
+			rows = sre_row(item.name)
+			self.assertEqual(len(rows), 1)
+			self.assertEqual(rows[0].reserved_qty, 10)
+			self.assertEqual(rows[0].reservation_based_on, "Serial and Batch")
+			pinned = frappe.get_all(
+				"Serial and Batch Entry",
+				filters={"parent": rows[0].name, "parentfield": "sb_entries"},
+			)
+			self.assertGreaterEqual(len(pinned), 1, "serial/batch entries should be pinned on the SRE")
+
+		# Manually unreserve: the SRE (and its pinned entries) must be cancelled and the stock freed.
+		cancel_stock_reservation_entries("Sales Order", so.name)
+		self.assertFalse(has_reserved_stock("Sales Order", so.name))
+		for item in so.items:
+			self.assertEqual(sre_row(item.name), [])
+
+		# The freed serial/batch stock can be reserved by another Sales Order.
+		so_b = make_sales_order(item_list=item_list, warehouse=self.warehouse)
+		so_b.create_stock_reservation_entries()
+		self.assertTrue(has_reserved_stock("Sales Order", so_b.name))
+
+	@ERPNextTestSuite.change_settings(
+		"Stock Settings",
+		{
+			"enable_stock_reservation": 1,
+			"auto_reserve_serial_and_batch": 1,
+			"pick_serial_and_batch_based_on": "FIFO",
+			"use_serial_batch_fields": 1,
+		},
+	)
+	def test_serial_and_batch_reserved_stock_delivery_and_cancel(self) -> None:
+		# Regression: delivering a serial/batch reserved Sales Order used to crash with
+		# "Serial and Batch Bundle None not found" when the delivered serial/batch was carried in the
+		# row's serial_no/batch_no fields (use_serial_batch_fields) rather than a bundle. Delivery
+		# must mark the reservation delivered, and cancelling the Delivery Note must restore it.
+		items_details = create_items()
+		create_material_receipt(items_details, self.warehouse, qty=10)
+
+		serial_item = next(
+			name for name, p in items_details.items() if p.get("has_serial_no") and not p.get("has_batch_no")
+		)
+		batch_item = next(
+			name for name, p in items_details.items() if p.get("has_batch_no") and not p.get("has_serial_no")
+		)
+
+		item_list = [
+			{"item_code": serial_item, "warehouse": self.warehouse, "qty": 10, "rate": 100},
+			{"item_code": batch_item, "warehouse": self.warehouse, "qty": 10, "rate": 100},
+		]
+		so = make_sales_order(item_list=item_list, warehouse=self.warehouse)
+		so.create_stock_reservation_entries()
+
+		def sre_row(so_item):
+			return frappe.get_all(
+				"Stock Reservation Entry",
+				filters={"voucher_no": so.name, "voucher_detail_no": so_item, "docstatus": 1},
+				fields=["reserved_qty", "delivered_qty", "status"],
+			)[0]
+
+		# Deliver the reserved stock (serial/batch carried in row fields, no bundle).
+		dn = make_delivery_note(so.name, kwargs={"for_reserved_stock": True})
+		dn.save()
+		dn.submit()
+		for item in so.items:
+			row = sre_row(item.name)
+			self.assertEqual(
+				row.delivered_qty, 10, "delivery should mark the serial/batch reservation delivered"
+			)
+			self.assertEqual(row.status, "Delivered")
+
+		# Cancelling the Delivery Note restores the reservation.
+		dn.cancel()
+		for item in so.items:
+			row = sre_row(item.name)
+			self.assertEqual(row.delivered_qty, 0, "DN cancel must restore the serial/batch reservation")
+			self.assertEqual(row.status, "Reserved")
+
 	@ERPNextTestSuite.change_settings(
 		"Stock Settings",
 		{