diff --git a/models/baseModels/InvoiceItem/InvoiceItem.ts b/models/baseModels/InvoiceItem/InvoiceItem.ts
index bbf71787..05ac01dd 100644
--- a/models/baseModels/InvoiceItem/InvoiceItem.ts
+++ b/models/baseModels/InvoiceItem/InvoiceItem.ts
@@ -439,62 +439,66 @@ export abstract class InvoiceItem extends Doc {
     },
     setItemDiscountAmount: {
       formula: async () => {
-        if (
-          !this.fyo.singles.AccountingSettings?.enablePricingRule &&
-          !this.parentdoc?.pricingRuleDetail
-        ) {
-          return (this.setItemDiscountAmount = false);
+        if (!this.fyo.singles.AccountingSettings?.enablePricingRule) {
+          return this.setItemDiscountAmount;
+        }
+
+        const hasPricingRule = this.parentdoc?.pricingRuleDetail?.some(
+          (rule) => rule.referenceItem === this.item
+        );
+
+        if (!hasPricingRule && (this.itemDiscountAmount as Money).isZero()) {
+          return false;
         }
 
         const applicablePricingRules = await getPricingRule(
           this.parentdoc as SalesInvoice
         );
 
-        let pricingRuleDoc;
+        const itemRule = applicablePricingRules?.find(
+          (rule) => rule.applyOnItem === this.item
+        );
 
-        applicablePricingRules?.map((val) => {
-          if (val.applyOnItem == this.item) {
-            pricingRuleDoc = val.pricingRule;
+        if (!itemRule) {
+          if (!this.prule) {
+            await this.set('itemDiscountAmount', this.itemDiscountAmount);
+            return true;
+          } else {
+            await this.set('itemDiscountAmount', this.fyo.pesa(0));
           }
-        });
-
-        if (!pricingRuleDoc) {
-          return this.setItemDiscountAmount;
+          return false;
         }
+        this.prule = itemRule;
 
-        if (
-          (pricingRuleDoc as PricingRule).discountType === 'Product Discount'
-        ) {
-          return this.setItemDiscountAmount;
-        }
+        const pricingRuleDoc = itemRule.pricingRule;
 
-        if ((pricingRuleDoc as PricingRule).priceDiscountType === 'amount') {
-          await this.set(
-            'itemDiscountAmount',
-            (pricingRuleDoc as PricingRule).discountAmount
-          );
+        if (pricingRuleDoc.priceDiscountType === 'amount') {
+          const discountAmount =
+            pricingRuleDoc.discountAmount ?? this.fyo.pesa(0);
+          await this.set('itemDiscountAmount', discountAmount);
           return true;
         }
 
-        return this.setItemDiscountAmount;
+        return false;
       },
-      dependsOn: ['pricingRuleDetail'],
+      dependsOn: ['pricingRuleDetail', 'quantity', 'item'],
     },
     itemDiscountPercent: {
       formula: async () => {
-        if (
-          !this.fyo.singles.AccountingSettings?.enablePricingRule ||
-          !this.parentdoc?.pricingRuleDetail
-        ) {
-          return (this.itemDiscountPercent = 0);
+        if (!this.fyo.singles.AccountingSettings?.enablePricingRule) {
+          return this.itemDiscountPercent ?? 0;
         }
 
         const pricingRule = this.parentdoc?.pricingRuleDetail?.filter(
           (prDetail) => prDetail.referenceItem === this.item
         );
 
-        if (pricingRule && !pricingRule.length) {
-          return (this.itemDiscountPercent = 0);
+        if (!pricingRule || !pricingRule.length) {
+          if (!this.prule) {
+            return this.itemDiscountPercent;
+          } else {
+            return this.fyo.pesa(0);
+          }
         }
 
         const pricingRuleDoc = (await this.fyo.doc.getDoc(
@@ -503,18 +507,17 @@ export abstract class InvoiceItem extends Doc {
         )) as PricingRule;
 
         if (pricingRuleDoc.discountType === 'Product Discount') {
-          return this.itemDiscountPercent;
+          return this.itemDiscountPercent ?? 0;
         }
 
         if (pricingRuleDoc.priceDiscountType === 'percentage') {
           await this.set('setItemDiscountAmount', false);
-
-          return pricingRuleDoc.discountPercentage;
+          return pricingRuleDoc.discountPercentage ?? 0;
         }
 
-        return this.itemDiscountPercent;
+        return this.itemDiscountPercent ?? 0;
       },
-      dependsOn: ['pricingRuleDetail'],
+      dependsOn: ['pricingRuleDetail', 'item'],
     },
   };
 
diff --git a/src/components/POS/Classic/SelectedItemRow.vue b/src/components/POS/Classic/SelectedItemRow.vue
index 449143b0..924a46db 100644
--- a/src/components/POS/Classic/SelectedItemRow.vue
+++ b/src/components/POS/Classic/SelectedItemRow.vue
@@ -407,7 +407,12 @@ export default defineComponent({
       this.$emit('runSinvFormulas');
     },
     async setQuantity(quantity: number) {
-      if (quantity <= 0) {
+      const hasManualDiscount = this.row.setItemDiscountAmount;
+      const isPercentageDiscount =
+        !hasManualDiscount && this.row.itemDiscountPercent !== 0;
+      const manualDiscountAmount = this.row.itemDiscountAmount;
+      const manualDiscountPercent = this.row.itemDiscountPercent;
+      if (!this.row.isReturn && quantity <= 0) {
         showToast({
           type: 'error',
           message: 'Quantity must be greater than zero.',
@@ -446,9 +451,20 @@ export default defineComponent({
       if (!this.row.isFreeItem) {
         this.$emit('applyPricingRule');
         this.$emit('runSinvFormulas');
-        this.row.set('setItemDiscountAmount', false);
-        this.row.set('itemDiscountPercent', 0);
+
+        if (!hasManualDiscount && !isPercentageDiscount) {
+          this.row.set('setItemDiscountAmount', false);
+          this.row.set('itemDiscountPercent', 0);
+        }
         this.row.set('rate', this.fyo.pesa(0));
+
+        if (hasManualDiscount) {
+          this.row.set('setItemDiscountAmount', true);
+          this.row.set('itemDiscountAmount', manualDiscountAmount);
+        } else if (isPercentageDiscount) {
+          this.row.set('setItemDiscountAmount', false);
+          this.row.set('itemDiscountPercent', manualDiscountPercent);
+        }
       }
     },
     async removeAddedItem(row: SalesInvoiceItem) {