diff --git a/erpnext/controllers/stock_controller.py b/erpnext/controllers/stock_controller.py
index c8899de0411..068e8a51ee8 100644
--- a/erpnext/controllers/stock_controller.py
+++ b/erpnext/controllers/stock_controller.py
@@ -64,6 +64,7 @@ class StockController(AccountsController):
 		self.validate_internal_transfer()
 		self.validate_putaway_capacity()
 		self.reset_conversion_factor()
+		self.check_zero_rate()
 
 	def reset_conversion_factor(self):
 		for row in self.get("items"):
@@ -79,6 +80,18 @@ class StockController(AccountsController):
 					alert=True,
 				)
 
+	def check_zero_rate(self):
+		for item in self.get("items"):
+			if (item.get("valuation_rate") == 0 or item.get("incoming_rate") == 0) and item.get(
+				"allow_zero_valuation_rate"
+			) == 0:
+				frappe.toast(
+					_(
+						"Row #{0}: Item {1} has zero rate but 'Allow Zero Valuation Rate' is not enabled."
+					).format(item.idx, frappe.bold(item.item_code)),
+					indicator="orange",
+				)
+
 	def validate_items_exist(self):
 		if not self.get("items"):
 			return