diff --git a/westech_r2/migrations/migrate_serial_grades.py b/westech_r2/migrations/migrate_serial_grades.py
index a8ae778..6bb293c 100644
--- a/westech_r2/migrations/migrate_serial_grades.py
+++ b/westech_r2/migrations/migrate_serial_grades.py
@@ -1,10 +1,10 @@
 """
-Data Migration: Populate new Serial No fields from existing data.
+Data Migration: Populate new Serial No fields from Device Condition Report data.
 
 Run this IMMEDIATELY after `bench migrate` on production.
 Requires: all new fields already exist (grade, cpu_test, ram_test, etc.)
 
-Maps cosmetic_grade C# values → new grade field:
+Maps cosmetic_grade C# values from latest Device Condition Report → new grade field:
   C5-C9 → High
   C4 → Med
   C3 → Low
@@ -17,29 +17,48 @@ from frappe.utils import now
 def run():
     print(f"[{now()}] Starting Serial No grade migration...")
     
+    # Get all Serial Nos with their latest Device Condition Report
     serials = frappe.get_all("Serial No",
-        fields=["name", "cosmetic_grade", "grade", "pricing_status"],
+        fields=["name"],
         limit_page_length=0
     )
     
-    stats = {"high": 0, "med": 0, "low": 0, "flagged": 0, "skipped": 0, "errors": 0}
+    stats = {"high": 0, "med": 0, "low": 0, "flagged": 0, "skipped": 0, "errors": 0, "no_report": 0}
     
     for i, s in enumerate(serials):
         try:
-            cosmetic = (s.cosmetic_grade or "").strip().upper()
+            # Find latest Device Condition Report for this serial
+            reports = frappe.get_all("Device Condition Report",
+                filters={"serial_no": s.name},
+                fields=["cosmetic_grade"],
+                order_by="creation DESC",
+                limit=1
+            )
             
-            # Map cosmetic_grade → new grade
-            if cosmetic in ("C5", "C6", "C7", "C8", "C9"):
-                new_grade = "High"
-            elif cosmetic == "C4":
-                new_grade = "Med"
-            elif cosmetic == "C3":
-                new_grade = "Low"
-            else:
+            if not reports:
+                # No report found - flag it
                 new_grade = "Flagged"
+                stats["no_report"] += 1
+            else:
+                cosmetic = (reports[0].cosmetic_grade or "").strip().upper()
+                
+                # Map cosmetic_grade → new grade
+                if cosmetic in ("C5", "C6", "C7", "C8", "C9"):
+                    new_grade = "High"
+                    stats["high"] += 1
+                elif cosmetic == "C4":
+                    new_grade = "Med"
+                    stats["med"] += 1
+                elif cosmetic == "C3":
+                    new_grade = "Low"
+                    stats["low"] += 1
+                else:
+                    new_grade = "Flagged"
+                    stats["flagged"] += 1
             
-            # Only update if grade is blank or old value
-            if s.grade and s.grade in ("High", "Med", "Low", "Flagged"):
+            # Only update if grade is blank
+            current_grade = frappe.db.get_value("Serial No", s.name, "grade")
+            if current_grade and current_grade in ("High", "Med", "Low", "Flagged"):
                 stats["skipped"] += 1
                 continue
             
@@ -54,8 +73,6 @@ def run():
                 "pricing_status": pricing_status
             })
             
-            stats[new_grade.lower()] += 1
-            
             if (i + 1) % 1000 == 0:
                 frappe.db.commit()
                 print(f"  Processed {i + 1}/{len(serials)}...")
@@ -71,8 +88,9 @@ def run():
     print(f"  High: {stats['high']}")
     print(f"  Med: {stats['med']}")
     print(f"  Low: {stats['low']}")
-    print(f"  Flagged: {stats['flagged']}")
-    print(f"  Skipped (already new grade): {stats['skipped']}")
+    print(f"  Flagged (from missing/bad grade): {stats['flagged']}")
+    print(f"  Flagged (no report found): {stats['no_report']}")
+    print(f"  Skipped (already migrated): {stats['skipped']}")
     print(f"  Errors: {stats['errors']}")
 
 if __name__ == "__main__":