diff --git a/erpnext/public/js/controllers/transaction.js b/erpnext/public/js/controllers/transaction.js
index 615d3302c5e..5ecbd839156 100644
--- a/erpnext/public/js/controllers/transaction.js
+++ b/erpnext/public/js/controllers/transaction.js
@@ -1802,7 +1802,10 @@ erpnext.TransactionController = class TransactionController extends erpnext.taxe
 		let item = frappe.get_doc(cdt, cdn);
 		item.conversion_factor = 1.0;
 		if (item.stock_qty) {
-			item.conversion_factor = flt(item.stock_qty) / flt(item.qty);
+			item.conversion_factor = flt(
+				flt(item.stock_qty) / flt(item.qty),
+				precision("conversion_factor", item)
+			);
 		}
 
 		refresh_field("conversion_factor", item.name, item.parentfield);
diff --git a/erpnext/stock/doctype/item/item.py b/erpnext/stock/doctype/item/item.py
index a82e1c2d527..0d3b549e5f4 100644
--- a/erpnext/stock/doctype/item/item.py
+++ b/erpnext/stock/doctype/item/item.py
@@ -1508,7 +1508,7 @@ def get_uom_conv_factor(uom: str | None, stock_uom: str | None):
 		"UOM Conversion Factor", {"to_uom": from_uom, "from_uom": to_uom}, ["value"], as_dict=1
 	)
 	if inverse_match:
-		return 1 / inverse_match.value
+		return flt(1 / inverse_match.value, frappe.get_precision("UOM Conversion Factor", "value"))
 
 	# This attempts to try and get conversion from intermediate UOM.
 	# case:
@@ -1528,7 +1528,7 @@ def get_uom_conv_factor(uom: str | None, stock_uom: str | None):
 	)
 
 	if intermediate_match:
-		return intermediate_match[0].value
+		return flt(intermediate_match[0].value, frappe.get_precision("UOM Conversion Factor", "value"))
 
 
 @frappe.whitelist()