From d959ca1694d2639caa71c90c433e96868e680c7b Mon Sep 17 00:00:00 2001
From: Sagar Vora <16315650+sagarvora@users.noreply.github.com>
Date: Mon, 18 Aug 2025 12:21:32 +0530
Subject: [PATCH] fix: handle dunning status change on all changes to
 outstanding amount

---
 erpnext/accounts/doctype/dunning/dunning.py | 44 +++++----------------
 erpnext/accounts/utils.py                   |  4 ++
 erpnext/hooks.py                            |  4 --
 3 files changed, 13 insertions(+), 39 deletions(-)

diff --git a/erpnext/accounts/doctype/dunning/dunning.py b/erpnext/accounts/doctype/dunning/dunning.py
index 9580bbfbf39..f64e957400b 100644
--- a/erpnext/accounts/doctype/dunning/dunning.py
+++ b/erpnext/accounts/doctype/dunning/dunning.py
@@ -164,43 +164,17 @@ class Dunning(AccountsController):
 		]
 
 
-def resolve_dunnings(doc, method=None):
-	"""
-	Resolve / unresolve Dunning based on whether all payments have been made.
-	Called when a Payment Entry / Credit Note is submitted / cancelled.
-	"""
-
-	match doc.doctype:
-		case "Payment Entry":
-			return resolve_dunnings_from_payment_entry(doc)
-		case "Sales Invoice":
-			return resolve_dunnings_from_credit_note(doc)
-
-
-def resolve_dunnings_from_payment_entry(doc):
-	is_submitted = doc.docstatus == 1
-
-	for reference in doc.references:
-		if reference.reference_doctype != "Sales Invoice" or not reference.allocated_amount:
-			continue
-
-		_update_linked_dunnings(reference.reference_name, to_resolve=is_submitted)
-
-
-def resolve_dunnings_from_credit_note(doc):
-	"""
-	Check if dunning should be resolved when a credit note is issued against a Sales Invoice.
-	Only process if update_outstanding_for_self is False (credit note is being applied against the original invoice).
-	"""
-	if not doc.is_return or doc.update_outstanding_for_self or not doc.return_against:
+def update_linked_dunnings(doc, previous_outstanding_amount):
+	if (
+		doc.doctype != "Sales Invoice"
+		or doc.is_return
+		or previous_outstanding_amount == doc.outstanding_amount
+	):
 		return
 
-	_update_linked_dunnings(doc.return_against, to_resolve=doc.docstatus == 1)
-
-
-def _update_linked_dunnings(sales_invoice: str, to_resolve: bool = True):
+	to_resolve = doc.outstanding_amount < previous_outstanding_amount
 	state = "Unresolved" if to_resolve else "Resolved"
-	dunnings = get_linked_dunnings_as_per_state(sales_invoice, state)
+	dunnings = get_linked_dunnings_as_per_state(doc.name, state)
 	if not dunnings:
 		return
 
@@ -245,7 +219,7 @@ def _update_linked_dunnings(sales_invoice: str, to_resolve: bool = True):
 			if has_outstanding:
 				break
 
-		new_status = "Resolved" if (not has_outstanding and to_resolve) else "Unresolved"
+		new_status = "Resolved" if not has_outstanding else "Unresolved"
 
 		if dunning.status != new_status:
 			dunning.status = new_status
diff --git a/erpnext/accounts/utils.py b/erpnext/accounts/utils.py
index 9e855229f8b..ab0283b44bd 100644
--- a/erpnext/accounts/utils.py
+++ b/erpnext/accounts/utils.py
@@ -1940,6 +1940,8 @@ def create_payment_ledger_entry(
 
 
 def update_voucher_outstanding(voucher_type, voucher_no, account, party_type, party):
+	from erpnext.accounts.doctype.dunning.dunning import update_linked_dunnings
+
 	if not voucher_type or not voucher_no:
 		return
 
@@ -1969,6 +1971,7 @@ def update_voucher_outstanding(voucher_type, voucher_no, account, party_type, pa
 
 	outstanding = voucher_outstanding[0]
 	ref_doc = frappe.get_lazy_doc(voucher_type, voucher_no)
+	previous_outstanding_amount = ref_doc.outstanding_amount
 	outstanding_amount = flt(
 		outstanding["outstanding_in_account_currency"], ref_doc.precision("outstanding_amount")
 	)
@@ -1982,6 +1985,7 @@ def update_voucher_outstanding(voucher_type, voucher_no, account, party_type, pa
 		outstanding_amount,
 	)
 
+	update_linked_dunnings(ref_doc, previous_outstanding_amount)
 	ref_doc.set_status(update=True)
 	ref_doc.notify_update()
 
diff --git a/erpnext/hooks.py b/erpnext/hooks.py
index b99f685aaeb..2bbd0f2c7da 100644
--- a/erpnext/hooks.py
+++ b/erpnext/hooks.py
@@ -359,11 +359,9 @@ doc_events = {
 		"on_submit": [
 			"erpnext.regional.create_transaction_log",
 			"erpnext.regional.italy.utils.sales_invoice_on_submit",
-			"erpnext.accounts.doctype.dunning.dunning.resolve_dunnings",
 		],
 		"on_cancel": [
 			"erpnext.regional.italy.utils.sales_invoice_on_cancel",
-			"erpnext.accounts.doctype.dunning.dunning.resolve_dunnings",
 		],
 		"on_trash": "erpnext.regional.check_deletion_permission",
 	},
@@ -376,9 +374,7 @@ doc_events = {
 	"Payment Entry": {
 		"on_submit": [
 			"erpnext.regional.create_transaction_log",
-			"erpnext.accounts.doctype.dunning.dunning.resolve_dunnings",
 		],
-		"on_cancel": ["erpnext.accounts.doctype.dunning.dunning.resolve_dunnings"],
 		"on_trash": "erpnext.regional.check_deletion_permission",
 	},
 	"Address": {