diff --git a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
index 185a06b4ea6..ace574727c7 100644
--- a/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/purchase_receipt.py
@@ -329,7 +329,10 @@ class PurchaseReceipt(BuyingController):
 			)
 
 	def po_required(self):
-		if frappe.db.get_single_value("Buying Settings", "po_required") == "Yes":
+		if (
+			frappe.db.get_single_value("Buying Settings", "po_required") == "Yes"
+			and not self.is_internal_transfer()
+		):
 			for d in self.get("items"):
 				if not d.purchase_order:
 					frappe.throw(_("Purchase Order number required for Item {0}").format(d.item_code))