diff --git a/erpnext/stock/doctype/delivery_note/test_delivery_note.py b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
index 69ef77e95aef..73b77f67536f 100644
--- a/erpnext/stock/doctype/delivery_note/test_delivery_note.py
+++ b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
@@ -6,7 +6,7 @@
 
 import frappe
 from frappe.tests.utils import FrappeTestCase
-from frappe.utils import add_days, cstr, flt, nowdate, nowtime, today
+from frappe.utils import add_days, cstr, flt, getdate, nowdate, nowtime, today
 
 from erpnext.accounts.doctype.account.test_account import get_inventory_account
 from erpnext.accounts.utils import get_balance_on
@@ -2032,6 +2032,40 @@ def test_same_posting_date_and_posting_time(self):
 
 		self.assertRaises(frappe.ValidationError, dn5.submit)
 
+	def test_warranty_expiry_date_for_serial_item(self):
+		item_code = make_item(
+			"Test Warranty Expiry Date Item",
+			properties={
+				"has_serial_no": 1,
+				"serial_no_series": "TWE.#####",
+				"is_stock_item": 1,
+				"warranty_period": 100,
+			},
+		).name
+
+		se = make_stock_entry(
+			item_code=item_code,
+			target="_Test Warehouse - _TC",
+			qty=2,
+			basic_rate=50,
+			posting_date=nowdate(),
+		)
+
+		serial_nos = get_serial_nos_from_bundle(se.items[0].serial_and_batch_bundle)
+		create_delivery_note(
+			item_code=item_code,
+			qty=2,
+			rate=300,
+			use_serial_batch_fields=0,
+			serial_no=serial_nos,
+		)
+
+		for row in serial_nos:
+			sn = frappe.get_doc("Serial No", row)
+			self.assertEqual(getdate(sn.warranty_expiry_date), getdate(add_days(nowdate(), 100)))
+			self.assertEqual(sn.status, "Delivered")
+			self.assertEqual(sn.warranty_period, 100)
+
 
 def create_delivery_note(**args):
 	dn = frappe.new_doc("Delivery Note")
diff --git a/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py b/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py
index 615d98a448d5..95dd735ec574 100644
--- a/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py
+++ b/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py
@@ -393,32 +393,6 @@ def set_serial_and_batch_values(self, parent, row, qty_field=None):
 
 		self.calculate_qty_and_amount(save=True)
 		self.validate_quantity(row, qty_field=qty_field)
-		self.set_warranty_expiry_date()
-
-	def set_warranty_expiry_date(self):
-		if self.type_of_transaction != "Outward":
-			return
-
-		if not (self.docstatus == 1 and self.voucher_type == "Delivery Note" and self.has_serial_no):
-			return
-
-		warranty_period = frappe.get_cached_value("Item", self.item_code, "warranty_period")
-
-		if not warranty_period:
-			return
-
-		warranty_expiry_date = add_days(self.posting_date, cint(warranty_period))
-
-		serial_nos = self.get_serial_nos()
-		if not serial_nos:
-			return
-
-		sn_table = frappe.qb.DocType("Serial No")
-		(
-			frappe.qb.update(sn_table)
-			.set(sn_table.warranty_expiry_date, warranty_expiry_date)
-			.where(sn_table.name.isin(serial_nos))
-		).run()
 
 	def validate_voucher_no(self):
 		if not (self.voucher_type and self.voucher_no):
diff --git a/erpnext/stock/serial_batch_bundle.py b/erpnext/stock/serial_batch_bundle.py
index 4880adab9213..aafa04ae52c7 100644
--- a/erpnext/stock/serial_batch_bundle.py
+++ b/erpnext/stock/serial_batch_bundle.py
@@ -4,7 +4,7 @@
 from frappe import _, bold
 from frappe.model.naming import make_autoname
 from frappe.query_builder.functions import CombineDatetime, Sum, Timestamp
-from frappe.utils import cint, cstr, flt, get_link_to_form, now, nowtime, today
+from frappe.utils import add_days, cint, cstr, flt, get_link_to_form, now, nowtime, today
 from pypika import Order
 
 from erpnext.stock.deprecated_serial_batch import (
@@ -338,7 +338,8 @@ def set_warehouse_and_status_in_serial_nos(self):
 			status = "Delivered"
 
 		sn_table = frappe.qb.DocType("Serial No")
-		(
+
+		query = (
 			frappe.qb.update(sn_table)
 			.set(sn_table.warehouse, warehouse)
 			.set(
@@ -351,7 +352,19 @@ def set_warehouse_and_status_in_serial_nos(self):
 			)
 			.set(sn_table.company, self.sle.company)
 			.where(sn_table.name.isin(serial_nos))
-		).run()
+		)
+
+		if status == "Delivered":
+			warranty_period = frappe.get_cached_value("Item", self.sle.item_code, "warranty_period")
+			if warranty_period:
+				warranty_expiry_date = add_days(self.sle.posting_date, cint(warranty_period))
+				query = query.set(sn_table.warranty_expiry_date, warranty_expiry_date)
+				query = query.set(sn_table.warranty_period, warranty_period)
+		else:
+			query = query.set(sn_table.warranty_expiry_date, None)
+			query = query.set(sn_table.warranty_period, 0)
+
+		query.run()
 
 	def set_batch_no_in_serial_nos(self):
 		entries = frappe.get_all(