diff --git a/erpnext/manufacturing/doctype/work_order/test_work_order.py b/erpnext/manufacturing/doctype/work_order/test_work_order.py
index a77bd159af..e562d6c4bd 100644
--- a/erpnext/manufacturing/doctype/work_order/test_work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/test_work_order.py
@@ -550,6 +550,48 @@ class TestWorkOrder(unittest.TestCase):
 
 		frappe.db.set_value("Manufacturing Settings", None, "material_consumption", 0)
 
+	def test_extra_material_transfer(self):
+		frappe.db.set_value("Manufacturing Settings", None, "material_consumption", 0)
+		frappe.db.set_value("Manufacturing Settings", None, "backflush_raw_materials_based_on",
+			"Material Transferred for Manufacture")
+
+		wo_order = make_wo_order_test_record(planned_start_date=now(), qty=4)
+
+		ste_cancel_list = []
+		ste1 = test_stock_entry.make_stock_entry(item_code="_Test Item",
+			target="_Test Warehouse - _TC", qty=20, basic_rate=5000.0)
+		ste2 = test_stock_entry.make_stock_entry(item_code="_Test Item Home Desktop 100",
+			target="_Test Warehouse - _TC", qty=20, basic_rate=1000.0)
+
+		ste_cancel_list.extend([ste1, ste2])
+
+		itemwise_qty = {}
+		s = frappe.get_doc(make_stock_entry(wo_order.name, "Material Transfer for Manufacture", 4))
+		for row in s.items:
+			row.qty = row.qty + 2
+			itemwise_qty.setdefault(row.item_code, row.qty)
+
+		s.submit()
+		ste_cancel_list.append(s)
+
+		ste3 = frappe.get_doc(make_stock_entry(wo_order.name, "Manufacture", 2))
+		for ste_row in ste3.items:
+			if itemwise_qty.get(ste_row.item_code) and ste_row.s_warehouse:
+				self.assertEquals(ste_row.qty, itemwise_qty.get(ste_row.item_code) / 2)
+
+		ste3.submit()
+		ste_cancel_list.append(ste3)
+
+		ste2 = frappe.get_doc(make_stock_entry(wo_order.name, "Manufacture", 2))
+		for ste_row in ste2.items:
+			if itemwise_qty.get(ste_row.item_code) and ste_row.s_warehouse:
+				self.assertEquals(ste_row.qty, itemwise_qty.get(ste_row.item_code) / 2)
+
+		for ste_doc in ste_cancel_list:
+			ste_doc.cancel()
+
+		frappe.db.set_value("Manufacturing Settings", None, "backflush_raw_materials_based_on", "BOM")
+
 def get_scrap_item_details(bom_no):
 	scrap_items = {}
 	for item in frappe.db.sql("""select item_code, stock_qty from `tabBOM Scrap Item`
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index d623d5c758..d77b70ff14 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -1200,7 +1200,10 @@ class StockEntry(StockController):
 							else:
 								qty = (req_qty_each * flt(self.fg_completed_qty)) - remaining_qty
 					else:
-						qty = req_qty_each * flt(self.fg_completed_qty)
+						if self.flags.backflush_based_on == "Material Transferred for Manufacture":
+							qty = (item.qty/trans_qty) * flt(self.fg_completed_qty)
+						else:
+							qty = req_qty_each * flt(self.fg_completed_qty)
 
 			elif backflushed_materials.get(item.item_code):
 				for d in backflushed_materials.get(item.item_code):
@@ -1208,7 +1211,8 @@ class StockEntry(StockController):
 						if (qty > req_qty):
 							qty = (qty/trans_qty) * flt(self.fg_completed_qty)
 
-						if consumed_qty:
+						if consumed_qty and frappe.db.get_single_value("Manufacturing Settings",
+							"material_consumption"):
 							qty -= consumed_qty
 
 			if cint(frappe.get_cached_value('UOM', item.stock_uom, 'must_be_whole_number')):