diff --git a/erpnext/controllers/selling_controller.py b/erpnext/controllers/selling_controller.py
index e661d8afbf4..c2a9afadcf0 100644
--- a/erpnext/controllers/selling_controller.py
+++ b/erpnext/controllers/selling_controller.py
@@ -279,7 +279,7 @@ class SellingController(StockController):
 				_(
 					"""Row #{0}: Selling rate for item {1} is lower than its {2}.
 					Selling {3} should be atleast {4}.<br><br>Alternatively,
-					you can disable selling price validation in {5} to bypass
+					you can disable '{5}' in {6} to bypass
 					this validation."""
 				).format(
 					idx,
@@ -287,6 +287,7 @@ class SellingController(StockController):
 					bold(ref_rate_field),
 					bold("net rate"),
 					bold(rate),
+					bold(frappe.get_meta("Selling Settings").get_label("validate_selling_price")),
 					get_link_to_form("Selling Settings", "Selling Settings"),
 				),
 				title=_("Invalid Selling Price"),
@@ -298,7 +299,6 @@ class SellingController(StockController):
 			return
 
 		is_internal_customer = self.get("is_internal_customer")
-		valuation_rate_map = {}
 
 		for item in self.items:
 			if not item.item_code or item.is_free_item:
@@ -308,7 +308,9 @@ class SellingController(StockController):
 				"Item", item.item_code, ("last_purchase_rate", "is_stock_item")
 			)
 
-			last_purchase_rate_in_sales_uom = last_purchase_rate * (item.conversion_factor or 1)
+			last_purchase_rate_in_sales_uom = flt(
+				last_purchase_rate * (item.conversion_factor or 1), item.precision("base_net_rate")
+			)
 
 			if flt(item.base_net_rate) < flt(last_purchase_rate_in_sales_uom):
 				throw_message(item.idx, item.item_name, last_purchase_rate_in_sales_uom, "last purchase rate")
@@ -316,50 +318,16 @@ class SellingController(StockController):
 			if is_internal_customer or not is_stock_item:
 				continue
 
-			valuation_rate_map[(item.item_code, item.warehouse)] = None
-
-		if not valuation_rate_map:
-			return
-
-		or_conditions = (
-			f"""(item_code = {frappe.db.escape(valuation_rate[0])}
-			and warehouse = {frappe.db.escape(valuation_rate[1])})"""
-			for valuation_rate in valuation_rate_map
-		)
-
-		valuation_rates = frappe.db.sql(
-			f"""
-			select
-				item_code, warehouse, valuation_rate
-			from
-				`tabBin`
-			where
-				({" or ".join(or_conditions)})
-				and valuation_rate > 0
-		""",
-			as_dict=True,
-		)
-
-		for rate in valuation_rates:
-			valuation_rate_map[(rate.item_code, rate.warehouse)] = rate.valuation_rate
-
-		for item in self.items:
-			if not item.item_code or item.is_free_item:
-				continue
-
-			last_valuation_rate = valuation_rate_map.get((item.item_code, item.warehouse))
-
-			if not last_valuation_rate:
-				continue
-
-			last_valuation_rate_in_sales_uom = last_valuation_rate * (item.conversion_factor or 1)
-
-			if flt(item.base_net_rate) < flt(last_valuation_rate_in_sales_uom):
+			if item.get("incoming_rate") and item.base_net_rate < (
+				valuation_rate := flt(
+					item.incoming_rate * (item.conversion_factor or 1), item.precision("base_net_rate")
+				)
+			):
 				throw_message(
 					item.idx,
 					item.item_name,
-					last_valuation_rate_in_sales_uom,
-					"valuation rate (Moving Average)",
+					valuation_rate,
+					"valuation rate",
 				)
 
 	def get_item_list(self):
diff --git a/erpnext/stock/doctype/delivery_note/test_delivery_note.py b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
index 29eabe2670e..4c6c4be2a52 100644
--- a/erpnext/stock/doctype/delivery_note/test_delivery_note.py
+++ b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
@@ -2807,6 +2807,23 @@ class TestDeliveryNote(FrappeTestCase):
 
 		frappe.db.set_single_value("System Settings", "float_precision", original_flt_precision)
 
+	@change_settings("Selling Settings", {"validate_selling_price": 1})
+	def test_validate_selling_price(self):
+		item_code = make_item("VSP Item", properties={"is_stock_item": 1}).name
+		make_stock_entry(item_code=item_code, target="_Test Warehouse - _TC", qty=1, basic_rate=10)
+		make_stock_entry(item_code=item_code, target="_Test Warehouse - _TC", qty=1, basic_rate=1)
+
+		dn = create_delivery_note(
+			item_code=item_code,
+			qty=1,
+			rate=9,
+			do_not_save=True,
+		)
+		self.assertRaises(frappe.ValidationError, dn.save)
+		dn.items[0].incoming_rate = 0
+		dn.items[0].stock_qty = 2
+		dn.save()
+
 
 def create_delivery_note(**args):
 	dn = frappe.new_doc("Delivery Note")