Index: CHANGELOG.md
===================================================================
diff -u -N -r63821a96e541fc20e39a5aad8bb48f4e80d60aca -r434adde4d6e44e27ced98b6ae6985bf3f15193d1
--- CHANGELOG.md	(.../CHANGELOG.md)	(revision 63821a96e541fc20e39a5aad8bb48f4e80d60aca)
+++ CHANGELOG.md	(.../CHANGELOG.md)	(revision 434adde4d6e44e27ced98b6ae6985bf3f15193d1)
@@ -12,6 +12,7 @@
 * [OLMIS-7582](https://openlmis.atlassian.net/browse/OLMIS-7582): fixed getStockAdjustment function when there is no draft in Physical Inventory - mobile app
 * [OLMIS-7599](https://openlmis.atlassian.net/browse/OLMIS-7599): fixed refreshing the app - mobile app
 * [OLMIS-7593](https://openlmis.atlassian.net/browse/OLMIS-7593): fixed issue with saving the Unaccounted Quantity field in draft
+* [OLMIS-7608](https://openlmis.atlassian.net/browse/OLMIS-7608): Fixed wrong error displaying when making receives and updating physical inventory
 
 Improvements:
 * [OLMIS-7588](https://openlmis.atlassian.net/browse/OLMIS-7588): Physical Inventory validation for unaccounted quantity - mobile app
Index: src/stock-adjustment-creation/adjustment-creation.controller.js
===================================================================
diff -u -N -r4ab1e5e0a5a657ca718bcd646162990cd5f5ada5 -r434adde4d6e44e27ced98b6ae6985bf3f15193d1
--- src/stock-adjustment-creation/adjustment-creation.controller.js	(.../adjustment-creation.controller.js)	(revision 4ab1e5e0a5a657ca718bcd646162990cd5f5ada5)
+++ src/stock-adjustment-creation/adjustment-creation.controller.js	(.../adjustment-creation.controller.js)	(revision 434adde4d6e44e27ced98b6ae6985bf3f15193d1)
@@ -470,8 +470,16 @@
                     })
                     .catch(function(response) {
                         if (response.data.messageKey ===
-                            'referenceData.error.lot.lotCode.mustBeUnique') {
-                            errorLots.push(lot.lotCode);
+                            'referenceData.error.lot.lotCode.mustBeUnique' ||
+                            response.data.messageKey ===
+                            'referenceData.error.lot.tradeItem.required') {
+                            errorLots.push({
+                                lotCode: lot.lotCode,
+                                error: response.data.messageKey ===
+                                'referenceData.error.lot.lotCode.mustBeUnique' ?
+                                    'stockPhysicalInventoryDraft.lotCodeMustBeUnique' :
+                                    'stockPhysicalInventoryDraft.tradeItemRequuiredToAddLotCode'
+                            });
                         }
                     }));
             });
@@ -513,8 +521,17 @@
                 .catch(function(errorResponse) {
                     loadingModalService.close();
                     if (errorLots) {
-                        alertService.error('stockPhysicalInventoryDraft.lotCodeMustBeUnique',
-                            errorLots.join(', '));
+                        var errorLotsReduced = errorLots.reduce(function(result, currentValue) {
+                            if (currentValue.error in result) {
+                                result[currentValue.error].push(currentValue.lotCode);
+                            } else {
+                                result[currentValue.error] = [currentValue.lotCode];
+                            }
+                            return result;
+                        }, {});
+                        for (var error in errorLotsReduced) {
+                            alertService.error(error, errorLotsReduced[error].join(', '));
+                        }
                         vm.selectedOrderableGroup = undefined;
                         vm.selectedLot = undefined;
                         vm.lotChanged();
Index: src/stock-physical-inventory-draft/messages_en.json
===================================================================
diff -u -N -r65b4d8ff6555ac16d77240a28d324d95863a71fb -r434adde4d6e44e27ced98b6ae6985bf3f15193d1
--- src/stock-physical-inventory-draft/messages_en.json	(.../messages_en.json)	(revision 65b4d8ff6555ac16d77240a28d324d95863a71fb)
+++ src/stock-physical-inventory-draft/messages_en.json	(.../messages_en.json)	(revision 434adde4d6e44e27ced98b6ae6985bf3f15193d1)
@@ -13,6 +13,7 @@
   "stockPhysicalInventoryDraft.productCode": "Product Code",
   "stockPhysicalInventoryDraft.lotCode": "Lot Code",
   "stockPhysicalInventoryDraft.lotCodeMustBeUnique": "Lot code must be unique",
+  "stockPhysicalInventoryDraft.tradeItemRequuiredToAddLotCode": "Trade Item is required to add a Lot Code",
   "stockPhysicalInventoryDraft.expiryDate": "Expiry Date",
   "stockPhysicalInventoryDraft.soh": "Stock on Hand",
   "stockPhysicalInventoryDraft.currentStock": "Current Stock",
Index: src/stock-physical-inventory-draft/physical-inventory-draft.controller.js
===================================================================
diff -u -N -r63821a96e541fc20e39a5aad8bb48f4e80d60aca -r434adde4d6e44e27ced98b6ae6985bf3f15193d1
--- src/stock-physical-inventory-draft/physical-inventory-draft.controller.js	(.../physical-inventory-draft.controller.js)	(revision 63821a96e541fc20e39a5aad8bb48f4e80d60aca)
+++ src/stock-physical-inventory-draft/physical-inventory-draft.controller.js	(.../physical-inventory-draft.controller.js)	(revision 434adde4d6e44e27ced98b6ae6985bf3f15193d1)
@@ -519,8 +519,16 @@
                         })
                         .catch(function(response) {
                             if (response.data.messageKey ===
-                                'referenceData.error.lot.lotCode.mustBeUnique') {
-                                errorLots.push(lineItem.lot.lotCode);
+                                'referenceData.error.lot.lotCode.mustBeUnique' ||
+                                response.data.messageKey ===
+                                'referenceData.error.lot.tradeItem.required') {
+                                errorLots.push({
+                                    lotCode: lineItem.lot.lotCode,
+                                    error: response.data.messageKey ===
+                                    'referenceData.error.lot.lotCode.mustBeUnique' ?
+                                        'stockPhysicalInventoryDraft.lotCodeMustBeUnique' :
+                                        'stockPhysicalInventoryDraft.tradeItemRequuiredToAddLotCode'
+                                });
                             }
                         }));
                 }
@@ -544,8 +552,17 @@
                 .catch(function(errorResponse) {
                     loadingModalService.close();
                     if (errorLots) {
-                        alertService.error('stockPhysicalInventoryDraft.lotCodeMustBeUnique',
-                            errorLots.join(', '));
+                        var errorLotsReduced = errorLots.reduce(function(result, currentValue) {
+                            if (currentValue.error in result) {
+                                result[currentValue.error].push(currentValue.lotCode);
+                            } else {
+                                result[currentValue.error] = [currentValue.lotCode];
+                            }
+                            return result;
+                        }, {});
+                        for (var error in errorLotsReduced) {
+                            alertService.error(error, errorLotsReduced[error].join(', '));
+                        }
                         return $q.reject(errorResponse.data.message);
                     }
                     alertService.error(errorResponse.data.message);