diff --git a/erpnext/public/js/controllers/transaction.js b/erpnext/public/js/controllers/transaction.js
index ae8c0c8c6d..00373a6513 100644
--- a/erpnext/public/js/controllers/transaction.js
+++ b/erpnext/public/js/controllers/transaction.js
@@ -2285,13 +2285,17 @@ erpnext.TransactionController = class TransactionController extends erpnext.taxe
 	}
 
 	coupon_code() {
-		var me = this;
-		frappe.run_serially([
-			() => this.frm.doc.ignore_pricing_rule=1,
-			() => me.ignore_pricing_rule(),
-			() => this.frm.doc.ignore_pricing_rule=0,
-			() => me.apply_pricing_rule()
-		]);
+		if (this.frm.doc.coupon_code || this.frm._last_coupon_code) {
+			// reset pricing rules if coupon code is set or is unset
+			const _ignore_pricing_rule = this.frm.doc.ignore_pricing_rule;
+			return frappe.run_serially([
+				() => this.frm.doc.ignore_pricing_rule=1,
+				() => this.frm.trigger('ignore_pricing_rule'),
+				() => this.frm.doc.ignore_pricing_rule=_ignore_pricing_rule,
+				() => this.frm.trigger('apply_pricing_rule'),
+				() => this.frm._last_coupon_code = this.frm.doc.coupon_code
+			]);
+		}
 	}
 };
 
diff --git a/erpnext/selling/page/point_of_sale/pos_payment.js b/erpnext/selling/page/point_of_sale/pos_payment.js
index 4d75e6ef1b..1e9f6d7d92 100644
--- a/erpnext/selling/page/point_of_sale/pos_payment.js
+++ b/erpnext/selling/page/point_of_sale/pos_payment.js
@@ -170,17 +170,20 @@ erpnext.PointOfSale.Payment = class {
     });
 
 		frappe.ui.form.on('POS Invoice', 'coupon_code', (frm) => {
-			if (!frm.doc.ignore_pricing_rule) {
-				if (frm.doc.coupon_code) {
-					frappe.run_serially([
-						() => frm.doc.ignore_pricing_rule=1,
-						() => frm.trigger('ignore_pricing_rule'),
-						() => frm.doc.ignore_pricing_rule=0,
-						() => frm.trigger('apply_pricing_rule'),
-						() => frm.save(),
-						() => this.update_totals_section(frm.doc)
-					]);
-				}
+			if (!frm.doc.ignore_pricing_rule && frm.doc.coupon_code) {
+				frappe.run_serially([
+					() => frm.doc.ignore_pricing_rule=1,
+					() => frm.trigger('ignore_pricing_rule'),
+					() => frm.doc.ignore_pricing_rule=0,
+					() => frm.trigger('apply_pricing_rule'),
+					() => frm.save(),
+					() => this.update_totals_section(frm.doc)
+				]);
+			} else if (frm.doc.ignore_pricing_rule && frm.doc.coupon_code) {
+				frappe.show_alert({
+					message: __("Ignore Pricing Rule is enabled. Cannot apply coupon code."),
+					indicator: "orange"
+				});
 			}
 		});