diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index bb288c5551..166564961d 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -1319,24 +1319,26 @@ def update_child_qty_rate(parent_doctype, trans_items, parent_doctype_name, chil
 		validate_quantity(child_item, d)
 
 		child_item.qty = flt(d.get("qty"))
-		precision = child_item.precision("rate") or 2
+		rate_precision = child_item.precision("rate") or 2
+		conv_fac_precision = child_item.precision("conversion_factor") or 2
+		qty_precision = child_item.precision("qty") or 2
 
-		if flt(child_item.billed_amt, precision) > flt(flt(d.get("rate")) * flt(d.get("qty")), precision):
+		if flt(child_item.billed_amt, rate_precision) > flt(flt(d.get("rate"), rate_precision) * flt(d.get("qty"), qty_precision), rate_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:
-			child_item.rate = flt(d.get("rate"))
+			child_item.rate = flt(d.get("rate"), rate_precision)
 
 		if d.get("conversion_factor"):
 			if child_item.stock_uom == child_item.uom:
 				child_item.conversion_factor = 1
 			else:
-				child_item.conversion_factor = flt(d.get('conversion_factor'))
+				child_item.conversion_factor = flt(d.get('conversion_factor'), conv_fac_precision)
 
 		if d.get("uom"):
 			child_item.uom = d.get("uom")
 			conversion_factor = flt(get_conversion_factor(child_item.item_code, child_item.uom).get("conversion_factor"))
-			child_item.conversion_factor = flt(d.get('conversion_factor')) or conversion_factor
+			child_item.conversion_factor = flt(d.get('conversion_factor'), conv_fac_precision) or conversion_factor
 
 		if d.get("delivery_date") and parent_doctype == 'Sales Order':
 			child_item.delivery_date = d.get('delivery_date')
diff --git a/erpnext/public/js/utils.js b/erpnext/public/js/utils.js
index 9ed500932f..6d73418821 100755
--- a/erpnext/public/js/utils.js
+++ b/erpnext/public/js/utils.js
@@ -452,6 +452,9 @@ erpnext.utils.update_child_items = function(opts) {
 	const frm = opts.frm;
 	const cannot_add_row = (typeof opts.cannot_add_row === 'undefined') ? true : opts.cannot_add_row;
 	const child_docname = (typeof opts.cannot_add_row === 'undefined') ? "items" : opts.child_docname;
+	const child_meta = frappe.get_meta(`${frm.doc.doctype} Item`);
+	const get_precision = (fieldname) => child_meta.fields.find(f => f.fieldname == fieldname).precision;
+
 	this.data = [];
 	const fields = [{
 		fieldtype:'Data',
@@ -499,14 +502,16 @@ erpnext.utils.update_child_items = function(opts) {
 		default: 0,
 		read_only: 0,
 		in_list_view: 1,
-		label: __('Qty')
+		label: __('Qty'),
+		precision: get_precision("qty")
 	}, {
 		fieldtype:'Currency',
 		fieldname:"rate",
 		default: 0,
 		read_only: 0,
 		in_list_view: 1,
-		label: __('Rate')
+		label: __('Rate'),
+		precision: get_precision("rate")
 	}];
 
 	if (frm.doc.doctype == 'Sales Order' || frm.doc.doctype == 'Purchase Order' ) {
@@ -521,7 +526,8 @@ erpnext.utils.update_child_items = function(opts) {
 			fieldtype: 'Float',
 			fieldname: "conversion_factor",
 			in_list_view: 1,
-			label: __("Conversion Factor")
+			label: __("Conversion Factor"),
+			precision: get_precision('conversion_factor')
 		})
 	}
 
diff --git a/erpnext/selling/doctype/sales_order/test_sales_order.py b/erpnext/selling/doctype/sales_order/test_sales_order.py
index 5aef096d4b..1ce36dd8bf 100644
--- a/erpnext/selling/doctype/sales_order/test_sales_order.py
+++ b/erpnext/selling/doctype/sales_order/test_sales_order.py
@@ -403,6 +403,22 @@ class TestSalesOrder(unittest.TestCase):
 
 		trans_item = json.dumps([{'item_code' : '_Test Item', 'rate' : 200, 'qty' : 2, 'docname': so.items[0].name}])
 		self.assertRaises(frappe.ValidationError, update_child_qty_rate,'Sales Order', trans_item, so.name)
+	
+	def test_update_child_with_precision(self):
+		from frappe.model.meta import get_field_precision
+		from frappe.custom.doctype.property_setter.property_setter import make_property_setter
+
+		precision = get_field_precision(frappe.get_meta("Sales Order Item").get_field("rate"))
+
+		make_property_setter("Sales Order Item", "rate", "precision", 7, "Currency")
+		so = make_sales_order(item_code= "_Test Item", qty=4, rate=200.34664)
+
+		trans_item = json.dumps([{'item_code' : '_Test Item', 'rate' : 200.34669, 'qty' : 4, 'docname': so.items[0].name}])
+		update_child_qty_rate('Sales Order', trans_item, so.name)
+
+		so.reload()
+		self.assertEqual(so.items[0].rate, 200.34669)
+		make_property_setter("Sales Order Item", "rate", "precision", precision, "Currency")
 
 	def test_update_child_perm(self):
 		so = make_sales_order(item_code= "_Test Item", qty=4)