diff --git a/erpnext/stock/doctype/quality_inspection/quality_inspection.py b/erpnext/stock/doctype/quality_inspection/quality_inspection.py
index 7c6b892416bad55084fffff497c875ae68824933..bf1c918668f1b9f70a6c1af76e3bf97cad907e4e 100644
--- a/erpnext/stock/doctype/quality_inspection/quality_inspection.py
+++ b/erpnext/stock/doctype/quality_inspection/quality_inspection.py
@@ -197,8 +197,19 @@ class QualityInspection(Document):
 		self.quality_inspection_template = template
 		self.get_item_specification_details()
 
+	def on_update(self):
+		if (
+			frappe.db.get_single_value("Stock Settings", "action_if_quality_inspection_is_not_submitted")
+			== "Warn"
+		):
+			self.update_qc_reference()
+
 	def on_submit(self):
-		self.update_qc_reference()
+		if (
+			frappe.db.get_single_value("Stock Settings", "action_if_quality_inspection_is_not_submitted")
+			== "Stop"
+		):
+			self.update_qc_reference()
 
 	def on_cancel(self):
 		self.ignore_linked_doctypes = "Serial and Batch Bundle"
@@ -206,15 +217,15 @@ class QualityInspection(Document):
 		self.update_qc_reference()
 
 	def on_trash(self):
-		self.update_qc_reference()
+		self.update_qc_reference(remove_reference=True)
 
 	def validate_readings_status_mandatory(self):
 		for reading in self.readings:
 			if not reading.status:
 				frappe.throw(_("Row #{0}: Status is mandatory").format(reading.idx))
 
-	def update_qc_reference(self):
-		quality_inspection = self.name if self.docstatus == 1 else ""
+	def update_qc_reference(self, remove_reference=False):
+		quality_inspection = self.name if self.docstatus < 2 and not remove_reference else ""
 
 		if self.reference_type == "Job Card":
 			if self.reference_name:
@@ -244,7 +255,7 @@ class QualityInspection(Document):
 					)
 				)
 
-				if self.batch_no and self.docstatus == 1:
+				if self.batch_no and self.docstatus < 2:
 					query = query.where(child_doc.batch_no == self.batch_no)
 
 				if self.docstatus == 2:  # if cancel, then remove qi link wherever same name