diff --git a/erpnext/manufacturing/doctype/work_order/test_work_order.py b/erpnext/manufacturing/doctype/work_order/test_work_order.py
index 307981f4294..3e67fd08033 100644
--- a/erpnext/manufacturing/doctype/work_order/test_work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/test_work_order.py
@@ -2501,6 +2501,53 @@ class TestWorkOrder(FrappeTestCase):
 		manufacture_entry = frappe.get_doc(make_stock_entry(wo.name, "Manufacture", 10))
 		self.assertEqual(manufacture_entry.items[0].s_warehouse, "Stores - _TC")
 
+	def test_serial_no_status_for_stock_entry(self):
+		items = {
+			"Finished Good Test Item 1": {"is_stock_item": 1},
+			"_Test RM Item with Serial No": {
+				"is_stock_item": 1,
+				"has_serial_no": 1,
+				"serial_no_series": "SN-FCG-NO-.####",
+			},
+		}
+		for item, properties in items.items():
+			make_item(item, properties)
+
+		fg_item = "Finished Good Test Item 1"
+		rec_se = test_stock_entry.make_stock_entry(
+			item_code="_Test RM Item with Serial No", target="_Test Warehouse - _TC", qty=4, basic_rate=100
+		)
+
+		if not frappe.db.get_value("BOM", {"item": fg_item, "docstatus": 1}):
+			bom = make_bom(
+				item=fg_item,
+				rate=1000,
+				raw_materials=["_Test RM Item with Serial No"],
+				do_not_save=True,
+			)
+			bom.rm_cost_as_per = "Price List"  # non stock item won't have valuation rate
+			bom.buying_price_list = "_Test Price List India"
+			bom.currency = "INR"
+			bom.save()
+
+		wo = make_wo_order_test_record(
+			production_item=fg_item, skip_transfer=1, source_warehouse="_Test Warehouse - _TC"
+		)
+
+		ste = frappe.get_doc(make_stock_entry(wo.name, "Manufacture", 4))
+		ste.items[0].use_serial_batch_fields = 1
+		ste.items[0].serial_no = "\n".join(
+			get_serial_nos_from_bundle(rec_se.items[0].serial_and_batch_bundle)
+		)
+		ste.insert()
+		ste.submit()
+
+		ste.reload()
+		serial_nos = get_serial_nos_from_bundle(ste.items[0].serial_and_batch_bundle)
+		for row in serial_nos:
+			status = frappe.db.get_value("Serial No", row, "status")
+			self.assertEqual(status, "Consumed")
+
 
 def make_operation(**kwargs):
 	kwargs = frappe._dict(kwargs)
diff --git a/erpnext/stock/doctype/serial_no/serial_no.json b/erpnext/stock/doctype/serial_no/serial_no.json
index 2d7fcac89a0..89c77d46b1e 100644
--- a/erpnext/stock/doctype/serial_no/serial_no.json
+++ b/erpnext/stock/doctype/serial_no/serial_no.json
@@ -254,7 +254,7 @@
    "in_list_view": 1,
    "in_standard_filter": 1,
    "label": "Status",
-   "options": "\nActive\nInactive\nDelivered\nExpired",
+   "options": "\nActive\nInactive\nConsumed\nDelivered\nExpired",
    "read_only": 1
   },
   {
@@ -272,7 +272,7 @@
  "icon": "fa fa-barcode",
  "idx": 1,
  "links": [],
- "modified": "2023-12-17 10:52:55.767839",
+ "modified": "2025-01-15 16:22:49.873889",
  "modified_by": "Administrator",
  "module": "Stock",
  "name": "Serial No",
@@ -316,4 +316,4 @@
  "sort_order": "DESC",
  "states": [],
  "track_changes": 1
-}
\ No newline at end of file
+}
diff --git a/erpnext/stock/doctype/serial_no/serial_no.py b/erpnext/stock/doctype/serial_no/serial_no.py
index 54f96fb7b10..274ce0f0d9d 100644
--- a/erpnext/stock/doctype/serial_no/serial_no.py
+++ b/erpnext/stock/doctype/serial_no/serial_no.py
@@ -50,7 +50,7 @@ class SerialNo(StockController):
 		purchase_document_no: DF.Data | None
 		purchase_rate: DF.Float
 		serial_no: DF.Data
-		status: DF.Literal["", "Active", "Inactive", "Delivered", "Expired"]
+		status: DF.Literal["", "Active", "Inactive", "Consumed", "Delivered", "Expired"]
 		warehouse: DF.Link | None
 		warranty_expiry_date: DF.Date | None
 		warranty_period: DF.Int
diff --git a/erpnext/stock/doctype/stock_entry/test_stock_entry.py b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
index 05661d3a83a..fea807264f8 100644
--- a/erpnext/stock/doctype/stock_entry/test_stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
@@ -1802,7 +1802,7 @@ class TestStockEntry(FrappeTestCase):
 
 		for serial_no in serial_nos:
 			self.assertTrue(frappe.db.exists("Serial No", serial_no))
-			self.assertEqual(frappe.db.get_value("Serial No", serial_no, "status"), "Delivered")
+			self.assertEqual(frappe.db.get_value("Serial No", serial_no, "status"), "Consumed")
 
 	def test_serial_batch_bundle_type_of_transaction(self):
 		item = make_item(
diff --git a/erpnext/stock/serial_batch_bundle.py b/erpnext/stock/serial_batch_bundle.py
index c450bf1a086..59c299de352 100644
--- a/erpnext/stock/serial_batch_bundle.py
+++ b/erpnext/stock/serial_batch_bundle.py
@@ -351,6 +351,15 @@ class SerialBatchBundle:
 		status = "Inactive"
 		if self.sle.actual_qty < 0:
 			status = "Delivered"
+			if self.sle.voucher_type == "Stock Entry":
+				purpose = frappe.get_cached_value("Stock Entry", self.sle.voucher_no, "purpose")
+				if purpose in [
+					"Manufacture",
+					"Material Issue",
+					"Repack",
+					"Material Consumption for Manufacture",
+				]:
+					status = "Consumed"
 
 		sn_table = frappe.qb.DocType("Serial No")
 
diff --git a/erpnext/stock/stock_ledger.py b/erpnext/stock/stock_ledger.py
index 37e91080d5d..91d10b3a9ac 100644
--- a/erpnext/stock/stock_ledger.py
+++ b/erpnext/stock/stock_ledger.py
@@ -622,15 +622,12 @@ class update_entries_after:
 				if sle.dependant_sle_voucher_detail_no:
 					entries_to_fix = self.get_dependent_entries_to_fix(entries_to_fix, sle)
 
-				if self.has_stock_reco_with_serial_batch(sle):
-					break
-
 		if self.exceptions:
 			self.raise_exceptions()
 
 	def has_stock_reco_with_serial_batch(self, sle):
 		if (
-			sle.vocher_type == "Stock Reconciliation"
+			sle.voucher_type == "Stock Reconciliation"
 			and frappe.db.get_value(sle.voucher_type, sle.voucher_no, "set_posting_time") == 1
 		):
 			return not (sle.batch_no or sle.serial_no or sle.serial_and_batch_bundle)