diff --git a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
index 3d5ce8ac40..0e54b62caa 100644
--- a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
+++ b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
@@ -1926,6 +1926,16 @@ class TestSalesInvoice(unittest.TestCase):
 		item.taxes = []
 		item.save()
 
+	def test_customer_provided_parts_si(self):
+		create_item('CUST-0987', is_customer_provided_item = 1, customer = '_Test Customer', is_purchase_item = 0)
+		si = create_sales_invoice(item_code='CUST-0987', rate=0)
+		self.assertEqual(si.get("items")[0].allow_zero_valuation_rate, 1)
+		self.assertEqual(si.get("items")[0].amount, 0)
+
+		# test if Sales Invoice with rate is allowed
+		si2 = create_sales_invoice(item_code='CUST-0987', do_not_save=True)
+		self.assertRaises(frappe.ValidationError, si2.save)
+
 def create_sales_invoice(**args):
 	si = frappe.new_doc("Sales Invoice")
 	args = frappe._dict(args)
@@ -1948,7 +1958,7 @@ def create_sales_invoice(**args):
 		"gst_hsn_code": "999800",
 		"warehouse": args.warehouse or "_Test Warehouse - _TC",
 		"qty": args.qty or 1,
-		"rate": args.rate or 100,
+		"rate": args.rate if args.get("rate") is not None else 100,
 		"income_account": args.income_account or "Sales - _TC",
 		"expense_account": args.expense_account or "Cost of Goods Sold - _TC",
 		"cost_center": args.cost_center or "_Test Cost Center - _TC",
diff --git a/erpnext/controllers/stock_controller.py b/erpnext/controllers/stock_controller.py
index 55a2c435a1..4037f2f60f 100644
--- a/erpnext/controllers/stock_controller.py
+++ b/erpnext/controllers/stock_controller.py
@@ -383,6 +383,9 @@ class StockController(AccountsController):
 			# Customer Provided parts will have zero valuation rate
 			if frappe.db.get_value('Item', d.item_code, 'is_customer_provided_item'):
 				d.allow_zero_valuation_rate = 1
+				if d.parenttype in ["Delivery Note", "Sales Invoice"] and d.rate:
+					frappe.throw(_("Row #{0}: {1} cannot have {2} as it is a Customer Provided Item")
+						.format(d.idx, frappe.bold(d.item_code), frappe.bold("Rate")))
 
 def update_gl_entries_after(posting_date, posting_time, for_warehouses=None, for_items=None,
 		warehouse_account=None, company=None):
diff --git a/erpnext/stock/doctype/delivery_note/test_delivery_note.py b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
index dc92c5c9ff..47a72b21a6 100644
--- a/erpnext/stock/doctype/delivery_note/test_delivery_note.py
+++ b/erpnext/stock/doctype/delivery_note/test_delivery_note.py
@@ -21,6 +21,7 @@ from erpnext.stock.doctype.stock_reconciliation.test_stock_reconciliation \
 from erpnext.selling.doctype.sales_order.test_sales_order import make_sales_order, create_dn_against_so
 from erpnext.accounts.doctype.account.test_account import get_inventory_account, create_account
 from erpnext.stock.doctype.warehouse.test_warehouse import get_warehouse
+from erpnext.stock.doctype.item.test_item import create_item
 
 class TestDeliveryNote(unittest.TestCase):
 	def setUp(self):
@@ -433,6 +434,15 @@ class TestDeliveryNote(unittest.TestCase):
 		update_delivery_note_status(dn.name, "Closed")
 		self.assertEqual(frappe.db.get_value("Delivery Note", dn.name, "Status"), "Closed")
 
+	def test_customer_provided_parts_dn(self):
+		create_item('CUST-0987', is_customer_provided_item = 1, customer = '_Test Customer', is_purchase_item = 0)
+		dn = create_delivery_note(item_code='CUST-0987', rate=0)
+		self.assertEqual(dn.get("items")[0].allow_zero_valuation_rate, 1)
+
+		# test if Delivery Note with rate is allowed against Customer Provided Item
+		dn2 = create_delivery_note(item_code='CUST-0987', do_not_save=True)
+		self.assertRaises(frappe.ValidationError, dn2.save)
+
 	def test_dn_billing_status_case1(self):
 		# SO -> DN -> SI
 		so = make_sales_order()
@@ -671,7 +681,7 @@ def create_delivery_note(**args):
 		"item_code": args.item or args.item_code or "_Test Item",
 		"warehouse": args.warehouse or "_Test Warehouse - _TC",
 		"qty": args.qty or 1,
-		"rate": args.rate or 100,
+		"rate": args.rate if args.get("rate") is not None else 100,
 		"conversion_factor": 1.0,
 		"allow_zero_valuation_rate": args.allow_zero_valuation_rate or 1,
 		"expense_account": args.expense_account or "Cost of Goods Sold - _TC",
diff --git a/erpnext/stock/doctype/stock_entry/test_stock_entry.py b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
index ee5f237098..2afabe1480 100644
--- a/erpnext/stock/doctype/stock_entry/test_stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
@@ -744,7 +744,7 @@ class TestStockEntry(unittest.TestCase):
 
 	def test_customer_provided_parts_se(self):
 		create_item('CUST-0987', is_customer_provided_item = 1, customer = '_Test Customer', is_purchase_item = 0)
-		se = make_stock_entry(item_code='CUST-0987', purporse = 'Material Receipt', qty=4, to_warehouse = "_Test Warehouse - _TC")
+		se = make_stock_entry(item_code='CUST-0987', purpose = 'Material Receipt', qty=4, to_warehouse = "_Test Warehouse - _TC")
 		self.assertEqual(se.get("items")[0].allow_zero_valuation_rate, 1)
 		self.assertEqual(se.get("items")[0].amount, 0)