diff --git a/stock/doctype/stock_reconciliation/stock_reconciliation.py b/stock/doctype/stock_reconciliation/stock_reconciliation.py
index 8afe1d2f7d0..4ab0acc541b 100644
--- a/stock/doctype/stock_reconciliation/stock_reconciliation.py
+++ b/stock/doctype/stock_reconciliation/stock_reconciliation.py
@@ -192,8 +192,9 @@ class DocType(DocListController):
 		def _insert_entries():
 			if previous_stock_queue != [[row.qty, row.valuation_rate]]:
 				# make entry as per attachment
-				self.insert_entries({"actual_qty": row.qty, 
-					"incoming_rate": flt(row.valuation_rate)}, row)
+				if row.qty:
+					self.insert_entries({"actual_qty": row.qty, 
+						"incoming_rate": flt(row.valuation_rate)}, row)
 				
 				# Make reverse entry
 				if previous_stock_qty:
diff --git a/stock/doctype/stock_reconciliation/test_stock_reconciliation.py b/stock/doctype/stock_reconciliation/test_stock_reconciliation.py
index fb85f653a0f..b3501cef56d 100644
--- a/stock/doctype/stock_reconciliation/test_stock_reconciliation.py
+++ b/stock/doctype/stock_reconciliation/test_stock_reconciliation.py
@@ -50,6 +50,7 @@ class TestStockReconciliation(unittest.TestCase):
 			[20, "", "2012-12-26", "12:05", 16000, 15, 18000],
 			[10, 2000, "2012-12-26", "12:10", 20000, 5, 6000],
 			[1, 1000, "2012-12-01", "00:00", 1000, 11, 13200],
+			[0, "", "2012-12-26", "12:10", 0, -5, 0]
 		]
 			
 		for d in input_data:
@@ -89,6 +90,8 @@ class TestStockReconciliation(unittest.TestCase):
 			[20, "", "2012-12-26", "12:05", 18000, 15, 18000],
 			[10, 2000, "2012-12-26", "12:10", 20000, 5, 6000],
 			[1, 1000, "2012-12-01", "00:00", 1000, 11, 13200],
+			[0, "", "2012-12-26", "12:10", 0, -5, 0]
+			
 		]
 		
 		for d in input_data: