diff --git a/erpnext/public/js/controllers/transaction.js b/erpnext/public/js/controllers/transaction.js
index cfbb54ab2d00..f71211b88263 100644
--- a/erpnext/public/js/controllers/transaction.js
+++ b/erpnext/public/js/controllers/transaction.js
@@ -969,7 +969,21 @@ erpnext.TransactionController = class TransactionController extends erpnext.taxe
 		this.frm.set_df_property("conversion_rate", "read_only", erpnext.stale_rate_allowed() ? 0 : 1);
 	}
 
+<<<<<<< HEAD
 	shipping_rule() {
+=======
+	apply_discount_on_item: function(doc, cdt, cdn, field) {
+		var item = frappe.get_doc(cdt, cdn);
+		if(!item.price_list_rate) {
+			item[field] = 0.0;
+		} else {
+			this.price_list_rate(doc, cdt, cdn);
+		}
+		this.set_gross_profit(item);
+	},
+
+	shipping_rule: function() {
+>>>>>>> bde9e89582 (fix: apply discount on item after applying price list (#36125))
 		var me = this;
 		if(this.frm.doc.shipping_rule) {
 			return this.frm.call({
@@ -1639,6 +1653,9 @@ erpnext.TransactionController = class TransactionController extends erpnext.taxe
 						() => {
 							if(args.items.length) {
 								me._set_values_for_item_list(r.message.children);
+								$.each(r.message.children || [], function(i, d) {
+									me.apply_discount_on_item(d, d.doctype, d.name, 'discount_percentage');
+								});
 							}
 						},
 						() => { me.in_apply_price_list = false; }
diff --git a/erpnext/selling/sales_common.js b/erpnext/selling/sales_common.js
index e3de49c57d81..0f6b330cbf84 100644
--- a/erpnext/selling/sales_common.js
+++ b/erpnext/selling/sales_common.js
@@ -145,6 +145,7 @@ erpnext.selling.SellingController = class SellingController extends erpnext.Tran
 		this.apply_discount_on_item(doc, cdt, cdn, 'discount_amount');
 	}
 
+<<<<<<< HEAD
 	apply_discount_on_item(doc, cdt, cdn, field) {
 		var item = frappe.get_doc(cdt, cdn);
 		if(!item.price_list_rate) {
@@ -156,6 +157,9 @@ erpnext.selling.SellingController = class SellingController extends erpnext.Tran
 	}
 
 	commission_rate() {
+=======
+	commission_rate: function() {
+>>>>>>> bde9e89582 (fix: apply discount on item after applying price list (#36125))
 		this.calculate_commission();
 	}