diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index 67f453d2b3..9415228467 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -1193,8 +1193,9 @@ def update_child_qty_rate(parent_doctype, trans_items, parent_doctype_name, chil
 			frappe.throw(_("Cannot set quantity less than received quantity"))
 
 		child_item.qty = flt(d.get("qty"))
+		precision = child_item.precision("rate") or 2
 
-		if flt(child_item.billed_amt) > (flt(d.get("rate")) * flt(d.get("qty"))):
+		if flt(child_item.billed_amt, precision) > flt(flt(d.get("rate")) * flt(d.get("qty")), precision):
 			frappe.throw(_("Row #{0}: Cannot set Rate if amount is greater than billed amount for Item {1}.")
 						 .format(child_item.idx, child_item.item_code))
 		else: