diff --git a/erpnext/controllers/buying_controller.py b/erpnext/controllers/buying_controller.py
index 055b09c2d31..4e726333a7f 100644
--- a/erpnext/controllers/buying_controller.py
+++ b/erpnext/controllers/buying_controller.py
@@ -670,7 +670,8 @@ class BuyingController(SubcontractingController):
 							"actual_qty": flt(
 								flt(d.rejected_qty) * flt(d.conversion_factor), d.precision("stock_qty")
 							),
-							"incoming_rate": valuation_rate_for_rejected_item,
+							"incoming_rate": valuation_rate_for_rejected_item if not self.is_return else 0.0,
+							"outgoing_rate": valuation_rate_for_rejected_item if self.is_return else 0.0,
 							"serial_and_batch_bundle": d.rejected_serial_and_batch_bundle,
 						},
 					)
diff --git a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
index 903a216d9db..c8c81c2a124 100644
--- a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
@@ -499,9 +499,7 @@ class PurchaseReceipt(BuyingController):
 			if item.get("rejected_qty") and frappe.db.get_single_value(
 				"Buying Settings", "set_valuation_rate_for_rejected_materials"
 			):
-				outgoing_amount += abs(
-					get_stock_value_difference(self.name, item.name, item.rejected_warehouse)
-				)
+				outgoing_amount += get_stock_value_difference(self.name, item.name, item.rejected_warehouse)
 				credit_amount = outgoing_amount
 
 			if credit_amount:
@@ -640,9 +638,7 @@ class PurchaseReceipt(BuyingController):
 			if item.get("rejected_qty") and frappe.db.get_single_value(
 				"Buying Settings", "set_valuation_rate_for_rejected_materials"
 			):
-				rejected_item_cost = abs(
-					get_stock_value_difference(self.name, item.name, item.rejected_warehouse)
-				)
+				rejected_item_cost = get_stock_value_difference(self.name, item.name, item.rejected_warehouse)
 				divisional_loss -= rejected_item_cost
 
 			if divisional_loss: