diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index 4511694d60e3c2dd239fa8b8f78cf7125543cec0..4085bc49cd2d4c8fe1c464acd537a92f12f04257 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -844,7 +844,7 @@ class AccountsController(TransactionBase):
 									and item.get("use_serial_batch_fields")
 								)
 							):
-								if fieldname == "batch_no" and not item.batch_no:
+								if fieldname == "batch_no" and not item.batch_no and not item.is_free_item:
 									item.set("rate", ret.get("rate"))
 									item.set("price_list_rate", ret.get("price_list_rate"))
 								item.set(fieldname, value)