diff --git a/erpnext/controllers/queries.py b/erpnext/controllers/queries.py
index 19dea080b1..2f6b59f0fb 100644
--- a/erpnext/controllers/queries.py
+++ b/erpnext/controllers/queries.py
@@ -280,22 +280,31 @@ def get_batch_no(doctype, txt, searchfield, start, page_len, filters):
 		"page_len": page_len
 	}
 
+	having_clause = "having sum(sle.actual_qty) > 0"
+	if filters.get("is_return"):
+		having_clause = ""
+
 	if args.get('warehouse'):
-		batch_nos = frappe.db.sql("""select sle.batch_no, round(sum(sle.actual_qty),2), sle.stock_uom, concat('MFG-',batch.manufacturing_date), concat('EXP-',batch.expiry_date)
-				from `tabStock Ledger Entry` sle
-				    INNER JOIN `tabBatch` batch on sle.batch_no = batch.name
-				where
-					batch.disabled = 0
-					and sle.item_code = %(item_code)s
-					and sle.warehouse = %(warehouse)s
-					and (sle.batch_no like %(txt)s
-					or batch.manufacturing_date like %(txt)s)
-					and batch.docstatus < 2
-					{0}
-					{match_conditions}
-				group by batch_no having sum(sle.actual_qty) > 0
-				order by batch.expiry_date, sle.batch_no desc
-				limit %(start)s, %(page_len)s""".format(cond, match_conditions=get_match_cond(doctype)), args)
+		batch_nos = frappe.db.sql("""select sle.batch_no, round(sum(sle.actual_qty),2), sle.stock_uom,
+				concat('MFG-',batch.manufacturing_date), concat('EXP-',batch.expiry_date)
+			from `tabStock Ledger Entry` sle
+				INNER JOIN `tabBatch` batch on sle.batch_no = batch.name
+			where
+				batch.disabled = 0
+				and sle.item_code = %(item_code)s
+				and sle.warehouse = %(warehouse)s
+				and (sle.batch_no like %(txt)s
+				or batch.manufacturing_date like %(txt)s)
+				and batch.docstatus < 2
+				{cond}
+				{match_conditions}
+			group by batch_no {having_clause}
+			order by batch.expiry_date, sle.batch_no desc
+			limit %(start)s, %(page_len)s""".format(
+				cond=cond,
+				match_conditions=get_match_cond(doctype),
+				having_clause = having_clause
+			), args)
 
 		return batch_nos
 	else:
diff --git a/erpnext/public/js/controllers/transaction.js b/erpnext/public/js/controllers/transaction.js
index 5a2f3bc9b8..ca492baf5a 100644
--- a/erpnext/public/js/controllers/transaction.js
+++ b/erpnext/public/js/controllers/transaction.js
@@ -1653,6 +1653,11 @@ erpnext.TransactionController = erpnext.taxes_and_totals.extend({
 				'item_code': item.item_code,
 				'posting_date': me.frm.doc.posting_date || frappe.datetime.nowdate(),
 			}
+
+			if (doc.is_return) {
+				filters["is_return"] = 1;
+			}
+
 			if (item.warehouse) filters["warehouse"] = item.warehouse;
 
 			return {