diff --git a/models/baseModels/Invoice/Invoice.ts b/models/baseModels/Invoice/Invoice.ts
index 7452696ec..820f854f5 100644
--- a/models/baseModels/Invoice/Invoice.ts
+++ b/models/baseModels/Invoice/Invoice.ts
@@ -195,6 +195,9 @@ export abstract class Invoice extends Transactional {
 
     if (this.isReturn) {
       await this._removeLoyaltyPointEntry();
+      await this.reduceUsedCountOfCoupons();
+
+      return;
     }
 
     if (this.isQuote) {
@@ -248,12 +251,14 @@ export abstract class Invoice extends Transactional {
     await this._updatePartyOutStanding();
     await this._updateIsItemsReturned();
     await this._removeLoyaltyPointEntry();
+    await this._reduceUsedCountOfCoupon();
+  }
+
+  async _reduceUsedCountOfCoupon() {
+    await this.reduceUsedCountOfCoupons();
   }
 
   async _removeLoyaltyPointEntry() {
-    if (!this.loyaltyProgram) {
-      return;
-    }
     await removeLoyaltyPoint(this);
   }
 
@@ -567,6 +572,20 @@ export abstract class Invoice extends Transactional {
       await couponDoc.setAndSync({ used: (couponDoc.used as number) + 1 });
     });
   }
+  async reduceUsedCountOfCoupons() {
+    if (!this.coupons?.length) {
+      return;
+    }
+
+    this.coupons?.map(async (coupon) => {
+      const couponDoc = await this.fyo.doc.getDoc(
+        ModelNameEnum.CouponCode,
+        coupon.coupons
+      );
+
+      await couponDoc.setAndSync({ used: (couponDoc.used as number) - 1 });
+    });
+  }
 
   async _updateIsItemsReturned() {
     if (!this.isReturn || !this.returnAgainst || this.isQuote) {
diff --git a/models/helpers.ts b/models/helpers.ts
index 80f8ab828..141ecc9c8 100644
--- a/models/helpers.ts
+++ b/models/helpers.ts
@@ -762,6 +762,10 @@ export function getLoyaltyProgramTier(
 }
 
 export async function removeLoyaltyPoint(doc: Doc) {
+  if (!doc.loyaltyProgram) {
+    return;
+  }
+
   const data = (await doc.fyo.db.getAll(ModelNameEnum.LoyaltyPointEntry, {
     fields: ['name', 'loyaltyPoints', 'expiryDate'],
     filters: {