diff --git a/sdk/src/client/api/block_builder/transaction_builder/mod.rs b/sdk/src/client/api/block_builder/transaction_builder/mod.rs
index f8fd48f363..ea26d99a5f 100644
--- a/sdk/src/client/api/block_builder/transaction_builder/mod.rs
+++ b/sdk/src/client/api/block_builder/transaction_builder/mod.rs
@@ -33,8 +33,8 @@ use crate::{
         input::{Input, UtxoInput, INPUT_COUNT_MAX, INPUT_COUNT_RANGE},
         mana::ManaAllotment,
         output::{
-            AccountId, AccountOutputBuilder, BasicOutputBuilder, ChainId, NftOutputBuilder, Output, OutputId,
-            OUTPUT_COUNT_RANGE,
+            AccountId, AccountOutputBuilder, BasicOutputBuilder, ChainId, FoundryOutputBuilder, NftOutputBuilder,
+            Output, OutputId, OUTPUT_COUNT_RANGE,
         },
         payload::{
             signed_transaction::{Transaction, TransactionCapabilities, TransactionCapabilityFlag},
@@ -416,6 +416,9 @@ impl TransactionBuilder {
                         .with_amount(new_amount)
                         .with_mana(new_mana)
                         .finish_output()?,
+                    Output::Foundry(f) => FoundryOutputBuilder::from(&*f)
+                        .with_amount(new_amount)
+                        .finish_output()?,
                     _ => unreachable!(),
                 };
             }
diff --git a/sdk/src/client/api/block_builder/transaction_builder/remainder.rs b/sdk/src/client/api/block_builder/transaction_builder/remainder.rs
index 6c805d95a6..de55b5ffc7 100644
--- a/sdk/src/client/api/block_builder/transaction_builder/remainder.rs
+++ b/sdk/src/client/api/block_builder/transaction_builder/remainder.rs
@@ -168,13 +168,15 @@ impl TransactionBuilder {
     fn output_for_remainder_exists(&self, chain_id: Option<ChainId>, remainder_address: &Address) -> bool {
         // Find the first value that matches the remainder address
         self.added_outputs.iter().any(|o| {
-            (o.chain_id() == chain_id || chain_id.is_none() && (o.is_basic() || o.is_account() || o.is_nft()))
+            (o.chain_id() == chain_id
+                || (chain_id.is_none()
+                    && (o.is_basic() || o.is_account() || o.is_nft())
+                    && matches!(o.required_address(
+                        self.latest_slot_commitment_id.slot_index(),
+                        self.protocol_parameters.committable_age_range(),
+                    ), Ok(Some(address)) if &address == remainder_address)))
                 && o.unlock_conditions().expiration().is_none()
                 && o.unlock_conditions().timelock().is_none()
-                && matches!(o.required_address(
-                    self.latest_slot_commitment_id.slot_index(),
-                    self.protocol_parameters.committable_age_range(),
-                ), Ok(Some(address)) if &address == remainder_address)
         })
     }
 
@@ -184,13 +186,15 @@ impl TransactionBuilder {
         remainder_address: &Address,
     ) -> Option<&mut Output> {
         self.added_outputs.iter_mut().find(|o| {
-            (o.chain_id() == chain_id || chain_id.is_none() && (o.is_basic() || o.is_account() || o.is_nft()))
-                && o.unlock_conditions().expiration().is_none()
-                && o.unlock_conditions().timelock().is_none()
-                && matches!(o.required_address(
+            (o.chain_id() == chain_id
+                || (chain_id.is_none()
+                    && (o.is_basic() || o.is_account() || o.is_nft())
+                    && matches!(o.required_address(
                         self.latest_slot_commitment_id.slot_index(),
                         self.protocol_parameters.committable_age_range(),
-                    ), Ok(Some(address)) if &address == remainder_address)
+                    ), Ok(Some(address)) if &address == remainder_address)))
+                && o.unlock_conditions().expiration().is_none()
+                && o.unlock_conditions().timelock().is_none()
         })
     }
 
diff --git a/sdk/src/client/api/block_builder/transaction_builder/transition.rs b/sdk/src/client/api/block_builder/transaction_builder/transition.rs
index 2901b03321..8137dabb62 100644
--- a/sdk/src/client/api/block_builder/transaction_builder/transition.rs
+++ b/sdk/src/client/api/block_builder/transaction_builder/transition.rs
@@ -150,8 +150,17 @@ impl TransactionBuilder {
             .with_foundry_counter(u32::max(highest_foundry_serial_number, input.foundry_counter()))
             .with_features(features);
 
+        // Block issuers cannot move their mana elsewhere.
         if input.is_block_issuer() {
-            builder = builder.with_mana(input.mana());
+            if self.burn.as_ref().map_or(false, |b| b.generated_mana()) {
+                builder = builder.with_mana(input.mana());
+            } else {
+                builder = builder.with_mana(input.available_mana(
+                    &self.protocol_parameters,
+                    output_id.transaction_id().slot_index(),
+                    self.creation_slot,
+                )?);
+            }
         }
 
         let output = builder.finish_output()?;
diff --git a/sdk/tests/client/transaction_builder/account_outputs.rs b/sdk/tests/client/transaction_builder/account_outputs.rs
index 38611fac17..86533dd7c5 100644
--- a/sdk/tests/client/transaction_builder/account_outputs.rs
+++ b/sdk/tests/client/transaction_builder/account_outputs.rs
@@ -19,6 +19,7 @@ use iota_sdk::{
         payload::signed_transaction::{TransactionCapabilities, TransactionCapabilityFlag},
         protocol::iota_mainnet_protocol_parameters,
         rand::output::{rand_output_id_with_slot_index, rand_output_metadata_with_id},
+        slot::SlotIndex,
     },
 };
 use pretty_assertions::{assert_eq, assert_ne};
@@ -2406,3 +2407,66 @@ fn account_transition_with_required_context_inputs() {
         1
     );
 }
+
+#[test]
+fn send_amount_from_block_issuer_account_with_generated_mana() {
+    let protocol_parameters = iota_mainnet_protocol_parameters().clone();
+    let account_id_1 = AccountId::from_str(ACCOUNT_ID_1).unwrap();
+    let ed25519_address = Address::try_from_bech32(BECH32_ADDRESS_ED25519_0).unwrap();
+
+    let inputs = [AccountOutputBuilder::new_with_amount(10_000_000, account_id_1)
+        .with_mana(20000)
+        .add_unlock_condition(AddressUnlockCondition::new(
+            Address::try_from_bech32(BECH32_ADDRESS_ED25519_0).unwrap(),
+        ))
+        .with_features([BlockIssuerFeature::new(
+            u32::MAX,
+            BlockIssuerKeys::from_vec(vec![
+                Ed25519PublicKeyHashBlockIssuerKey::new(**ed25519_address.as_ed25519()).into(),
+            ])
+            .unwrap(),
+        )
+        .unwrap()])
+        .finish_output()
+        .unwrap()];
+    let inputs = inputs
+        .into_iter()
+        .map(|input| InputSigningData {
+            output: input,
+            output_metadata: rand_output_metadata_with_id(rand_output_id_with_slot_index(SlotIndex(5))),
+            chain: None,
+        })
+        .collect::<Vec<_>>();
+
+    let outputs = vec![
+        BasicOutputBuilder::new_with_amount(1_000_000)
+            .add_unlock_condition(AddressUnlockCondition::new(ed25519_address.clone()))
+            .finish_output()
+            .unwrap(),
+    ];
+
+    let selected = TransactionBuilder::new(
+        inputs.clone(),
+        outputs.clone(),
+        [Address::try_from_bech32(BECH32_ADDRESS_ED25519_0).unwrap()],
+        SLOT_INDEX,
+        SLOT_COMMITMENT_ID,
+        protocol_parameters,
+    )
+    .with_min_mana_allotment(account_id_1, 2)
+    .with_remainder_address(Address::Account(account_id_1.into()))
+    .finish()
+    .unwrap();
+
+    assert!(unsorted_eq(&selected.inputs_data, &inputs));
+    assert_eq!(selected.transaction.outputs().len(), 2);
+    assert!(selected.transaction.outputs()[1].is_account());
+    assert_eq!(selected.transaction.allotments().len(), 1);
+    // Required context inputs are added when the account is transitioned
+    assert_eq!(selected.transaction.context_inputs().len(), 2);
+    assert!(selected.transaction.context_inputs().commitment().is_some());
+    assert_eq!(
+        selected.transaction.context_inputs().block_issuance_credits().count(),
+        1
+    );
+}