diff --git a/erpnext/subcontracting/doctype/subcontracting_order/subcontracting_order.js b/erpnext/subcontracting/doctype/subcontracting_order/subcontracting_order.js
index 9d788f0809d..4ed73805314 100644
--- a/erpnext/subcontracting/doctype/subcontracting_order/subcontracting_order.js
+++ b/erpnext/subcontracting/doctype/subcontracting_order/subcontracting_order.js
@@ -235,9 +235,11 @@ erpnext.buying.SubcontractingOrderController = class SubcontractingOrderControll
 	}
 
 	has_unsupplied_items() {
-		return this.frm.doc["supplied_items"].some(
-			(item) => item.required_qty > item.supplied_qty - item.returned_qty
-		);
+		let over_transfer_allowance = this.frm.doc.__onload.over_transfer_allowance;
+		return this.frm.doc["supplied_items"].some((item) => {
+			let required_qty = item.required_qty + (item.required_qty * over_transfer_allowance) / 100;
+			return required_qty > item.supplied_qty - item.returned_qty;
+		});
 	}
 
 	make_subcontracting_receipt() {
diff --git a/erpnext/subcontracting/doctype/subcontracting_order/subcontracting_order.py b/erpnext/subcontracting/doctype/subcontracting_order/subcontracting_order.py
index 4d3441a6da2..e36a4be75c2 100644
--- a/erpnext/subcontracting/doctype/subcontracting_order/subcontracting_order.py
+++ b/erpnext/subcontracting/doctype/subcontracting_order/subcontracting_order.py
@@ -99,6 +99,12 @@ class SubcontractingOrder(SubcontractingController):
 			}
 		]
 
+	def onload(self):
+		self.set_onload(
+			"over_transfer_allowance",
+			frappe.db.get_single_value("Buying Settings", "over_transfer_allowance"),
+		)
+
 	def before_validate(self):
 		super().before_validate()