diff --git a/erpnext/manufacturing/doctype/production_plan/production_plan.js b/erpnext/manufacturing/doctype/production_plan/production_plan.js
index cd92263543b7..c9c474db7f0a 100644
--- a/erpnext/manufacturing/doctype/production_plan/production_plan.js
+++ b/erpnext/manufacturing/doctype/production_plan/production_plan.js
@@ -173,7 +173,7 @@ frappe.ui.form.on('Production Plan', {
 			method: "set_status",
 			freeze: true,
 			doc: frm.doc,
-			args: {close : close},
+			args: {close : close, update_bin: true},
 			callback: function() {
 				frm.reload_doc();
 			}
diff --git a/erpnext/manufacturing/doctype/production_plan/production_plan.py b/erpnext/manufacturing/doctype/production_plan/production_plan.py
index f64af50188f0..5dc5c38376a9 100644
--- a/erpnext/manufacturing/doctype/production_plan/production_plan.py
+++ b/erpnext/manufacturing/doctype/production_plan/production_plan.py
@@ -579,7 +579,7 @@ def delete_draft_work_order(self):
 			frappe.delete_doc("Work Order", d.name)
 
 	@frappe.whitelist()
-	def set_status(self, close=None):
+	def set_status(self, close=None, update_bin=False):
 		self.status = {0: "Draft", 1: "Submitted", 2: "Cancelled"}.get(self.docstatus)
 
 		if close:
@@ -599,7 +599,7 @@ def set_status(self, close=None):
 		if close is not None:
 			self.db_set("status", self.status)
 
-		if self.docstatus == 1 and self.status != "Completed":
+		if update_bin and self.docstatus == 1 and self.status != "Completed":
 			self.update_bin_qty()
 
 	def update_ordered_status(self):
diff --git a/erpnext/manufacturing/doctype/production_plan/test_production_plan.py b/erpnext/manufacturing/doctype/production_plan/test_production_plan.py
index fedeb7a47776..1c748a809b7a 100644
--- a/erpnext/manufacturing/doctype/production_plan/test_production_plan.py
+++ b/erpnext/manufacturing/doctype/production_plan/test_production_plan.py
@@ -1486,14 +1486,14 @@ def test_unreserve_qty_on_closing_of_pp(self):
 		before_qty = flt(frappe.db.get_value("Bin", bin_name, "reserved_qty_for_production_plan"))
 
 		pln.reload()
-		pln.set_status(close=True)
+		pln.set_status(close=True, update_bin=True)
 
 		bin_name = get_or_make_bin(rm_item, rm_warehouse)
 		after_qty = flt(frappe.db.get_value("Bin", bin_name, "reserved_qty_for_production_plan"))
 		self.assertAlmostEqual(after_qty, before_qty - 10)
 
 		pln.reload()
-		pln.set_status(close=False)
+		pln.set_status(close=False, update_bin=True)
 
 		bin_name = get_or_make_bin(rm_item, rm_warehouse)
 		after_qty = flt(frappe.db.get_value("Bin", bin_name, "reserved_qty_for_production_plan"))