diff --git a/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py b/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py
index b5d2e3f790..085e87f5f4 100644
--- a/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py
+++ b/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py
@@ -77,8 +77,8 @@ class StockLedgerEntry(Document):
 				elif not frappe.db.get_value("Batch",{"item": self.item_code, "name": self.batch_no}):
 					frappe.throw(_("{0} is not a valid Batch Number for Item {1}").format(self.batch_no, self.item_code))
 
-			elif item_det.has_batch_no ==0 and self.batch_no:
-					frappe.throw(_("The Item {0} cannot have Batch").format(self.item_code))
+			elif item_det.has_batch_no ==0 and self.batch_no and self.is_cancelled == "No":
+				frappe.throw(_("The Item {0} cannot have Batch").format(self.item_code))
 
 		if item_det.has_variants:
 			frappe.throw(_("Stock cannot exist for Item {0} since has variants").format(self.item_code),