diff --git a/erpnext/accounts/doctype/pricing_rule/utils.py b/erpnext/accounts/doctype/pricing_rule/utils.py
index 94abf3b3c06..5467cb0bc5b 100644
--- a/erpnext/accounts/doctype/pricing_rule/utils.py
+++ b/erpnext/accounts/doctype/pricing_rule/utils.py
@@ -475,7 +475,20 @@ def apply_pricing_rule_on_transaction(doc):
 						frappe.msgprint(_("User has not applied rule on the invoice {0}")
 							.format(doc.name))
 					else:
-						doc.set(field, d.get(pr_field))
+						if not d.coupon_code_based:
+							doc.set(field, d.get(pr_field))
+						elif doc.get('coupon_code'):
+							# coupon code based pricing rule
+							coupon_code_pricing_rule = frappe.db.get_value('Coupon Code', doc.get('coupon_code'), 'pricing_rule')
+							if coupon_code_pricing_rule == d.name:
+								# if selected coupon code is linked with pricing rule
+								doc.set(field, d.get(pr_field))
+							else:
+								# reset discount if not linked
+								doc.set(field, 0)
+						else:
+							# if coupon code based but no coupon code selected
+							doc.set(field, 0)
 
 				doc.calculate_taxes_and_totals()
 			elif d.price_or_product_discount == 'Product':