diff --git a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
index 90bb541030f..830a5e99567 100644
--- a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
@@ -2860,6 +2860,50 @@ class TestPurchaseReceipt(FrappeTestCase):
 			"Buying Settings", "bill_for_rejected_quantity_in_purchase_invoice", old_value
 		)
 
+	def test_zero_valuation_rate_for_batched_item(self):
+		from erpnext.stock.doctype.stock_entry.test_stock_entry import make_stock_entry
+
+		item = make_item(
+			"_Test Zero Valuation Rate For the Batch Item",
+			{
+				"is_purchase_item": 1,
+				"is_stock_item": 1,
+				"has_batch_no": 1,
+				"create_new_batch": 1,
+				"batch_number_series": "TZVRFORBATCH.#####",
+				"valuation_rate": 200,
+			},
+		)
+
+		pi = make_purchase_receipt(
+			qty=10,
+			rate=0,
+			item_code=item.name,
+		)
+
+		pi.reload()
+		batch_no = get_batch_from_bundle(pi.items[0].serial_and_batch_bundle)
+
+		se = make_stock_entry(
+			purpose="Material Issue",
+			item_code=item.name,
+			source=pi.items[0].warehouse,
+			qty=10,
+			batch_no=batch_no,
+			use_serial_batch_fields=0,
+		)
+
+		se.submit()
+
+		se.reload()
+
+		self.assertEqual(se.items[0].valuation_rate, 0)
+		self.assertEqual(se.items[0].basic_rate, 0)
+
+		sabb_doc = frappe.get_doc("Serial and Batch Bundle", se.items[0].serial_and_batch_bundle)
+		for row in sabb_doc.entries:
+			self.assertEqual(row.incoming_rate, 0)
+
 
 def prepare_data_for_internal_transfer():
 	from erpnext.accounts.doctype.sales_invoice.test_sales_invoice import create_internal_supplier
diff --git a/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py b/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py
index 67f946eb7c8..a1a8a85e745 100644
--- a/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py
+++ b/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py
@@ -249,8 +249,7 @@ class SerialandBatchBundle(Document):
 			if self.has_serial_no:
 				d.incoming_rate = abs(sn_obj.serial_no_incoming_rate.get(d.serial_no, 0.0))
 			else:
-				if sn_obj.batch_avg_rate.get(d.batch_no):
-					d.incoming_rate = abs(sn_obj.batch_avg_rate.get(d.batch_no))
+				d.incoming_rate = abs(flt(sn_obj.batch_avg_rate.get(d.batch_no)))
 
 				available_qty = flt(sn_obj.available_qty.get(d.batch_no), d.precision("qty"))
 				if self.docstatus == 1: