diff --git a/erpnext/stock/doctype/item/item.py b/erpnext/stock/doctype/item/item.py
index 8597b1208f..423b9defc1 100644
--- a/erpnext/stock/doctype/item/item.py
+++ b/erpnext/stock/doctype/item/item.py
@@ -164,10 +164,7 @@ class Item(Document):
 		if not self.is_stock_item or self.has_serial_no or self.has_batch_no:
 			return
 
-		if not self.valuation_rate and self.standard_rate:
-			self.valuation_rate = self.standard_rate
-
-		if not self.valuation_rate and not self.is_customer_provided_item:
+		if not self.valuation_rate and not self.standard_rate and not self.is_customer_provided_item:
 			frappe.throw(_("Valuation Rate is mandatory if Opening Stock entered"))
 
 		from erpnext.stock.doctype.stock_entry.stock_entry_utils import make_stock_entry
@@ -192,7 +189,7 @@ class Item(Document):
 					item_code=self.name,
 					target=default_warehouse,
 					qty=self.opening_stock,
-					rate=self.valuation_rate,
+					rate=self.valuation_rate or self.standard_rate,
 					company=default.company,
 					posting_date=getdate(),
 					posting_time=nowtime(),