diff --git a/erpnext/buying/doctype/supplier/supplier.py b/erpnext/buying/doctype/supplier/supplier.py
index e36b9c05546..4e138721f77 100644
--- a/erpnext/buying/doctype/supplier/supplier.py
+++ b/erpnext/buying/doctype/supplier/supplier.py
@@ -20,7 +20,6 @@ from erpnext.controllers.website_list_for_contact import (
 	add_role_for_portal_user,
 	link_portal_users_to_contacts,
 )
-from erpnext.stock.doctype.company_restriction.company_restriction import validate_allowed_companies
 from erpnext.utilities.transaction_base import TransactionBase
 
 
@@ -154,7 +153,6 @@ class Supplier(TransactionBase):
 		self.validate_internal_supplier()
 		self.add_role_for_user()
 		self.validate_currency_for_receivable_payable_and_advance_account()
-		validate_allowed_companies(self)
 
 	@frappe.whitelist()
 	def get_supplier_group_details(self):
diff --git a/erpnext/hooks.py b/erpnext/hooks.py
index 35f69dae11f..54ab7f03ea0 100644
--- a/erpnext/hooks.py
+++ b/erpnext/hooks.py
@@ -400,6 +400,9 @@ doc_events = {
 	tuple(company_restricted_transaction_doctypes): {
 		"validate": "erpnext.stock.doctype.company_restriction.company_restriction.validate_transaction_company",
 	},
+	("Item", "Customer", "Supplier"): {
+		"validate": "erpnext.stock.doctype.company_restriction.company_restriction.validate_allowed_companies",
+	},
 	"Stock Entry": {
 		"on_submit": "erpnext.stock.doctype.material_request.material_request.update_completed_and_requested_qty",
 		"on_cancel": "erpnext.stock.doctype.material_request.material_request.update_completed_and_requested_qty",
diff --git a/erpnext/selling/doctype/customer/customer.py b/erpnext/selling/doctype/customer/customer.py
index 6ff2b49a33e..2d7a562715f 100644
--- a/erpnext/selling/doctype/customer/customer.py
+++ b/erpnext/selling/doctype/customer/customer.py
@@ -28,7 +28,6 @@ from erpnext.controllers.website_list_for_contact import (
 	add_role_for_portal_user,
 	link_portal_users_to_contacts,
 )
-from erpnext.stock.doctype.company_restriction.company_restriction import validate_allowed_companies
 from erpnext.utilities.transaction_base import TransactionBase
 
 from .mapper import (
@@ -193,7 +192,6 @@ class Customer(TransactionBase):
 		self.validate_internal_customer()
 		self.add_role_for_user()
 		self.validate_currency_for_receivable_payable_and_advance_account()
-		validate_allowed_companies(self)
 
 		# set loyalty program tier
 		if not self.is_new() and (customer := self.get_doc_before_save()):
diff --git a/erpnext/stock/doctype/company_restriction/company_restriction.py b/erpnext/stock/doctype/company_restriction/company_restriction.py
index eb9b3b602ce..e02dafac024 100644
--- a/erpnext/stock/doctype/company_restriction/company_restriction.py
+++ b/erpnext/stock/doctype/company_restriction/company_restriction.py
@@ -79,7 +79,7 @@ def has_permission(doc, ptype=None, user=None):
 	return any(row.company in allowed_companies for row in doc.get("allowed_companies") or [])
 
 
-def validate_allowed_companies(doc):
+def validate_allowed_companies(doc, method=None):
 	if not doc.get("restrict_to_companies"):
 		doc.set("allowed_companies", [])
 	elif not doc.get("allowed_companies") and not doc.flags.ignore_mandatory:
diff --git a/erpnext/stock/doctype/company_restriction/test_company_restriction.py b/erpnext/stock/doctype/company_restriction/test_company_restriction.py
index e29bb329a1b..d33f5791830 100644
--- a/erpnext/stock/doctype/company_restriction/test_company_restriction.py
+++ b/erpnext/stock/doctype/company_restriction/test_company_restriction.py
@@ -54,3 +54,8 @@ class TestCompanyRestriction(ERPNextTestSuite):
 	def test_unrestricted_item_is_not_blocked(self):
 		item = make_item()
 		make_material_request(item_code=item.name)
+
+	def test_allowed_companies_is_mandatory_when_restricted(self):
+		item = make_item()
+		item.restrict_to_companies = 1
+		self.assertRaises(frappe.MandatoryError, item.save)
diff --git a/erpnext/stock/doctype/item/item.py b/erpnext/stock/doctype/item/item.py
index e00fe9c8fd8..8da6652d1bb 100644
--- a/erpnext/stock/doctype/item/item.py
+++ b/erpnext/stock/doctype/item/item.py
@@ -30,7 +30,6 @@ from erpnext.controllers.item_variant import (
 	make_variant_item_code,
 	validate_item_variant_attributes,
 )
-from erpnext.stock.doctype.company_restriction.company_restriction import validate_allowed_companies
 from erpnext.stock.doctype.item_default.item_default import ItemDefault
 from erpnext.stock.serial_batch_bundle import SerialBatchCreation
 from erpnext.stock.utils import get_valuation_method
@@ -246,7 +245,6 @@ class Item(Document):
 		self.validate_serialized_change_with_bundle()
 		self.validate_standard_cost_change()
 		self.validate_item_tax_net_rate_range()
-		validate_allowed_companies(self)
 
 		if not self.is_new():
 			self.old_item_group = frappe.db.get_value(self.doctype, self.name, "item_group")