diff --git a/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py b/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py
index 277ca01320fb..04441f0e8b13 100644
--- a/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py
+++ b/erpnext/stock/doctype/stock_ledger_entry/stock_ledger_entry.py
@@ -93,6 +93,9 @@ def validate(self):
 		self.validate_inventory_dimension_negative_stock()
 
 	def validate_inventory_dimension_negative_stock(self):
+		if self.is_cancelled:
+			return
+
 		extra_cond = ""
 		kwargs = {}