diff --git a/erpnext/accounts/doctype/pricing_rule/test_pricing_rule.py b/erpnext/accounts/doctype/pricing_rule/test_pricing_rule.py
index af8d21d9ce..f28cee7c5a 100644
--- a/erpnext/accounts/doctype/pricing_rule/test_pricing_rule.py
+++ b/erpnext/accounts/doctype/pricing_rule/test_pricing_rule.py
@@ -56,6 +56,7 @@ class TestPricingRule(unittest.TestCase):
 		self.assertEqual(details.get("discount_percentage"), 10)
 
 		prule = frappe.get_doc(test_record.copy())
+		prule.priority = 1
 		prule.applicable_for = "Customer"
 		prule.title = "_Test Pricing Rule for Customer"
 		self.assertRaises(MandatoryError, prule.insert)
@@ -261,6 +262,7 @@ class TestPricingRule(unittest.TestCase):
 			"rate_or_discount": "Discount Percentage",
 			"rate": 0,
 			"discount_percentage": 17.5,
+			"priority": 1,
 			"company": "_Test Company"
 		}).insert()
 
@@ -557,6 +559,7 @@ def make_pricing_rule(**args):
 		"rate": args.rate or 0.0,
 		"margin_rate_or_amount": args.margin_rate_or_amount or 0.0,
 		"condition": args.condition or '',
+		"priority": 1,
 		"apply_multiple_pricing_rules": args.apply_multiple_pricing_rules or 0
 	})
 
diff --git a/erpnext/accounts/doctype/pricing_rule/utils.py b/erpnext/accounts/doctype/pricing_rule/utils.py
index bd9d0b3815..d163335996 100644
--- a/erpnext/accounts/doctype/pricing_rule/utils.py
+++ b/erpnext/accounts/doctype/pricing_rule/utils.py
@@ -59,18 +59,17 @@ def sorted_by_priority(pricing_rules, args, doc=None):
 	pricing_rules_list = []
 	pricing_rule_dict = {}
 
-	priority = []
 	for pricing_rule in pricing_rules:
 		pricing_rule = filter_pricing_rules(args, pricing_rule, doc)
 		if pricing_rule:
 			if not pricing_rule.get('priority'):
-				pricing_rules_list.append(pricing_rule)
-			else:
-				priority.append(cint(pricing_rule.get('priority')))
+				pricing_rule['priority'] = 1
+
+			if pricing_rule.get('apply_multiple_pricing_rules'):
 				pricing_rule_dict.setdefault(cint(pricing_rule.get("priority")), []).append(pricing_rule)
 
-	if priority:
-		pricing_rules_list.extend(pricing_rule_dict.get(min(priority)))
+	for key in sorted(pricing_rule_dict):
+		pricing_rules_list.extend(pricing_rule_dict.get(key))
 
 	return pricing_rules_list or pricing_rules
 
diff --git a/erpnext/controllers/taxes_and_totals.py b/erpnext/controllers/taxes_and_totals.py
index 9f087e86a4..6c7eb92221 100644
--- a/erpnext/controllers/taxes_and_totals.py
+++ b/erpnext/controllers/taxes_and_totals.py
@@ -624,8 +624,8 @@ class calculate_taxes_and_totals(object):
 				for d in get_applied_pricing_rules(item.pricing_rules):
 					pricing_rule = frappe.get_cached_doc('Pricing Rule', d)
 
-					if (pricing_rule.margin_rate_or_amount and pricing_rule.currency == self.doc.currency and
-						pricing_rule.margin_type in ['Amount', 'Percentage']):
+					if pricing_rule.margin_rate_or_amount and ((pricing_rule.currency == self.doc.currency and
+						pricing_rule.margin_type in ['Amount', 'Percentage']) or pricing_rule.margin_type == 'Percentage'):
 						item.margin_type = pricing_rule.margin_type
 						item.margin_rate_or_amount = pricing_rule.margin_rate_or_amount
 						has_margin = True