diff --git a/erpnext/selling/doctype/customer/customer.py b/erpnext/selling/doctype/customer/customer.py
index 7ef8fbbd6309..835b545cbed5 100644
--- a/erpnext/selling/doctype/customer/customer.py
+++ b/erpnext/selling/doctype/customer/customer.py
@@ -602,7 +602,8 @@ def get_customer_outstanding(
 		"""
 		select sum(debit) - sum(credit)
 		from `tabGL Entry` where party_type = 'Customer'
-		and party = %s and company=%s {0}""".format(
+		and is_cancelled = 0 and party = %s
+		and company=%s {0}""".format(
 			cond
 		),
 		(customer, company),