diff --git a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
index 41e55546a8..e8445aa82a 100644
--- a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
+++ b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
@@ -3371,6 +3371,13 @@ class TestSalesInvoice(unittest.TestCase):
 
 		set_advance_flag(company="_Test Company", flag=0, default_account="")
 
+	def test_sales_return_negative_rate(self):
+		si = create_sales_invoice(is_return=1, qty=-2, rate=-10, do_not_save=True)
+		self.assertRaises(frappe.ValidationError, si.save)
+
+		si.items[0].rate = 10
+		si.save()
+
 
 def set_advance_flag(company, flag, default_account):
 	frappe.db.set_value(
diff --git a/erpnext/controllers/status_updater.py b/erpnext/controllers/status_updater.py
index 58cab147a4..a4bc4a9c69 100644
--- a/erpnext/controllers/status_updater.py
+++ b/erpnext/controllers/status_updater.py
@@ -233,6 +233,9 @@ class StatusUpdater(Document):
 				if hasattr(d, "qty") and d.qty > 0 and self.get("is_return"):
 					frappe.throw(_("For an item {0}, quantity must be negative number").format(d.item_code))
 
+				if hasattr(d, "item_code") and hasattr(d, "rate") and d.rate < 0:
+					frappe.throw(_("For an item {0}, rate must be a positive number").format(d.item_code))
+
 				if d.doctype == args["source_dt"] and d.get(args["join_field"]):
 					args["name"] = d.get(args["join_field"])