diff --git a/erpnext/stock/report/incorrect_serial_no_valuation/incorrect_serial_no_valuation.py b/erpnext/stock/report/incorrect_serial_no_valuation/incorrect_serial_no_valuation.py
index 39d84a7d5bed93bd56713e41629e2d5b59d8fac2..9f597cede15f779e3546f5c1de60c75190115be7 100644
--- a/erpnext/stock/report/incorrect_serial_no_valuation/incorrect_serial_no_valuation.py
+++ b/erpnext/stock/report/incorrect_serial_no_valuation/incorrect_serial_no_valuation.py
@@ -18,16 +18,41 @@ def execute(filters=None):
 
 def get_data(filters):
 	data = get_stock_ledger_entries(filters)
-	serial_nos_data = prepare_serial_nos(data)
+	bundles = get_bundles(data)
+	serial_nos_data = prepare_serial_nos(data, bundles)
 	data = get_incorrect_serial_nos(serial_nos_data)
 
 	return data
 
 
-def prepare_serial_nos(data):
+def get_bundles(data):
+	bundles = [d.serial_and_batch_bundle for d in data if d.serial_and_batch_bundle]
+	bundle_dict = frappe._dict()
+	serial_nos_data = frappe.get_all(
+		"Serial and Batch Entry",
+		fields=["parent", "serial_no", "incoming_rate", "qty"],
+		filters={"parent": ("in", bundles), "serial_no": ("is", "set")},
+	)
+
+	for entry in serial_nos_data:
+		bundle_dict.setdefault(entry.parent, []).append(entry)
+
+	return bundle_dict
+
+
+def prepare_serial_nos(data, bundles):
 	serial_no_wise_data = {}
 	for row in data:
-		if not row.serial_nos:
+		if not row.serial_nos and not row.serial_and_batch_bundle:
+			continue
+
+		if row.serial_and_batch_bundle:
+			for bundle in bundles.get(row.serial_and_batch_bundle, []):
+				sle = copy.deepcopy(row)
+				sle.serial_no = bundle.serial_no
+				sle.qty = bundle.qty
+				sle.valuation_rate = bundle.incoming_rate * (1 if sle.qty > 0 else -1)
+				serial_no_wise_data.setdefault(bundle.serial_no, []).append(sle)
 			continue
 
 		for serial_no in get_serial_nos(row.serial_nos):
@@ -43,9 +68,7 @@ def prepare_serial_nos(data):
 def get_incorrect_serial_nos(serial_nos_data):
 	result = []
 
-	total_value = frappe._dict(
-		{"qty": 0, "valuation_rate": 0, "serial_no": frappe.bold(_("Balance"))}
-	)
+	total_value = frappe._dict({"qty": 0, "valuation_rate": 0, "serial_no": frappe.bold(_("Balance"))})
 
 	for serial_no, data in serial_nos_data.items():
 		total_dict = frappe._dict({"qty": 0, "valuation_rate": 0, "serial_no": frappe.bold(_("Total"))})
@@ -56,6 +79,9 @@ def get_incorrect_serial_nos(serial_nos_data):
 			total_value.qty += total_dict.qty
 			total_value.valuation_rate += total_dict.valuation_rate
 
+			if total_dict.qty == 0 and abs(total_dict.valuation_rate) == 0:
+				continue
+
 			result.append(total_dict)
 			result.append({})
 
@@ -83,6 +109,7 @@ def get_stock_ledger_entries(report_filters):
 		"voucher_no",
 		"item_code",
 		"serial_no as serial_nos",
+		"serial_and_batch_bundle",
 		"actual_qty",
 		"posting_date",
 		"posting_time",
@@ -91,7 +118,8 @@ def get_stock_ledger_entries(report_filters):
 		"(stock_value_difference / actual_qty) as valuation_rate",
 	]
 
-	filters = {"serial_no": ("is", "set"), "is_cancelled": 0}
+	filters = {"is_cancelled": 0}
+	or_filters = {"serial_no": ("is", "set"), "serial_and_batch_bundle": ("is", "set")}
 
 	if report_filters.get("item_code"):
 		filters["item_code"] = report_filters.get("item_code")
@@ -106,6 +134,7 @@ def get_stock_ledger_entries(report_filters):
 		"Stock Ledger Entry",
 		fields=fields,
 		filters=filters,
+		or_filters=or_filters,
 		order_by="posting_date asc, posting_time asc, creation asc",
 	)