diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index 9664ed67498..e221595061d 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -462,6 +462,7 @@ class StockEntry(StockController):
 						"project": self.project,
 						"uom": item.uom,
 						"s_warehouse": item.s_warehouse,
+						"is_finished_item": item.is_finished_item,
 					}
 				),
 				for_update=True,
@@ -491,6 +492,9 @@ class StockEntry(StockController):
 					flt(item.qty) * flt(item.conversion_factor), self.precision("transfer_qty", item)
 				)
 
+			if self.purpose == "Manufacture":
+				item.set("expense_account", item_details.get("expense_account"))
+
 	def validate_fg_completed_qty(self):
 		item_wise_qty = {}
 		if self.purpose == "Manufacture" and self.work_order:
@@ -1774,7 +1778,9 @@ class StockEntry(StockController):
 		if self.purpose == "Material Issue":
 			ret["expense_account"] = item.get("expense_account") or item_group_defaults.get("expense_account")
 
-		if self.purpose == "Manufacture" or not ret.get("expense_account"):
+		if (self.purpose == "Manufacture" and not args.get("is_finished_item")) or not ret.get(
+			"expense_account"
+		):
 			ret["expense_account"] = frappe.get_cached_value(
 				"Company", self.company, "stock_adjustment_account"
 			)
diff --git a/erpnext/stock/doctype/stock_entry/test_stock_entry.py b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
index cde5be4d6ee..aa5f0ae1045 100644
--- a/erpnext/stock/doctype/stock_entry/test_stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
@@ -1267,6 +1267,7 @@ class TestStockEntry(FrappeTestCase):
 				frappe._dict(item_code="_Test FG Item", qty=4, t_warehouse="_Test Warehouse 1 - _TC"),
 			],
 		)
+		frappe.db.set_value("Company", "_Test Company", "stock_adjustment_account", "Stock Adjustment - _TC")
 		# SE must have atleast one FG
 		self.assertRaises(FinishedGoodError, se.save)
 
@@ -1284,6 +1285,9 @@ class TestStockEntry(FrappeTestCase):
 		self.assertEqual(se.value_difference, 0.0)
 		self.assertEqual(se.total_incoming_value, se.total_outgoing_value)
 
+		self.assertEqual(se.items[0].expense_account, "Stock Adjustment - _TC")
+		self.assertEqual(se.items[1].expense_account, "_Test Account Cost for Goods Sold - _TC")
+
 	@change_settings("Stock Settings", {"allow_negative_stock": 0})
 	def test_future_negative_sle(self):
 		# Initialize item, batch, warehouse, opening qty