diff --git a/erpnext/public/js/controllers/transaction.js b/erpnext/public/js/controllers/transaction.js
index 0b5c9124ad..19e12e3c69 100644
--- a/erpnext/public/js/controllers/transaction.js
+++ b/erpnext/public/js/controllers/transaction.js
@@ -14,6 +14,31 @@ erpnext.TransactionController = class TransactionController extends erpnext.taxe
 
 			frappe.model.round_floats_in(item, ["rate", "price_list_rate"]);
 
+			if(item.price_list_rate) {
+				if(item.rate > item.price_list_rate && has_margin_field) {
+					// if rate is greater than price_list_rate, set margin
+					// or set discount
+					item.discount_percentage = 0;
+					item.margin_type = 'Amount';
+					item.margin_rate_or_amount = flt(item.rate - item.price_list_rate,
+						precision("margin_rate_or_amount", item));
+					item.rate_with_margin = item.rate;
+				} else {
+					item.discount_percentage = flt((1 - item.rate / item.price_list_rate) * 100.0,
+						precision("discount_percentage", item));
+					item.discount_amount = flt(item.price_list_rate) - flt(item.rate);
+					item.margin_type = '';
+					item.margin_rate_or_amount = 0;
+					item.rate_with_margin = 0;
+				}
+			} else {
+				item.discount_percentage = 0.0;
+				item.margin_type = '';
+				item.margin_rate_or_amount = 0;
+				item.rate_with_margin = 0;
+			}
+			item.base_rate_with_margin = item.rate_with_margin * flt(frm.doc.conversion_rate);
+
 			cur_frm.cscript.set_gross_profit(item);
 			cur_frm.cscript.calculate_taxes_and_totals();
 			cur_frm.cscript.calculate_stock_uom_rate(frm, cdt, cdn);