diff --git a/erpnext/accounts/doctype/pos_invoice_merge_log/pos_invoice_merge_log.py b/erpnext/accounts/doctype/pos_invoice_merge_log/pos_invoice_merge_log.py
index c8f14220c1..78a20e8cb4 100644
--- a/erpnext/accounts/doctype/pos_invoice_merge_log/pos_invoice_merge_log.py
+++ b/erpnext/accounts/doctype/pos_invoice_merge_log/pos_invoice_merge_log.py
@@ -83,19 +83,17 @@ class POSInvoiceMergeLog(Document):
 		pos_invoice_docs = [
 			frappe.get_cached_doc("POS Invoice", d.pos_invoice) for d in self.pos_invoices
 		]
+		batched_invoices = self.get_batched_invoices(pos_invoice_docs)
 
-		returns = [d for d in pos_invoice_docs if d.get("is_return") == 1]
-		sales = [d for d in pos_invoice_docs if d.get("is_return") == 0]
+		for invoice in batched_invoices:
+			sales_invoice, credit_note = "", ""
+			if not invoice[0].get("is_return"):
+				sales_invoice = self.process_merging_into_sales_invoice(invoice)
+			else:
+				credit_note = self.process_merging_into_credit_note(invoice)
 
-		sales_invoice, credit_note = "", ""
-		if returns:
-			credit_note = self.process_merging_into_credit_note(returns)
-
-		if sales:
-			sales_invoice = self.process_merging_into_sales_invoice(sales)
-
-		self.save()  # save consolidated_sales_invoice & consolidated_credit_note ref in merge log
-		self.update_pos_invoices(pos_invoice_docs, sales_invoice, credit_note)
+			self.save()  # save consolidated_sales_invoice & consolidated_credit_note ref in merge log
+			self.update_pos_invoices(pos_invoice_docs, sales_invoice, credit_note)
 
 	def on_cancel(self):
 		pos_invoice_docs = [
@@ -273,6 +271,21 @@ class POSInvoiceMergeLog(Document):
 			si.flags.ignore_validate = True
 			si.cancel()
 
+	def get_batched_invoices(self, pos_invoice_docs):
+		grouped_batch = []
+		current_batch = []
+		for item in pos_invoice_docs:
+			if not current_batch:
+				current_batch.append(item)
+			elif current_batch[-1].get("is_return") != item.get("is_return"):
+				grouped_batch.append(current_batch)
+				current_batch = [item]
+			else:
+				current_batch.append(item)
+
+		grouped_batch.append(current_batch)
+		return grouped_batch
+
 
 def update_item_wise_tax_detail(consolidate_tax_row, tax_row):
 	consolidated_tax_detail = json.loads(consolidate_tax_row.item_wise_tax_detail)