diff --git a/erpnext/buying/doctype/purchase_order/purchase_order.py b/erpnext/buying/doctype/purchase_order/purchase_order.py
index 4c10b4812e..5a4168a573 100644
--- a/erpnext/buying/doctype/purchase_order/purchase_order.py
+++ b/erpnext/buying/doctype/purchase_order/purchase_order.py
@@ -207,31 +207,36 @@ class PurchaseOrder(BuyingController):
 				)
 
 	def validate_fg_item_for_subcontracting(self):
-		if self.is_subcontracted and not self.is_old_subcontracting_flow:
+		if self.is_subcontracted:
+			if not self.is_old_subcontracting_flow:
+				for item in self.items:
+					if not item.fg_item:
+						frappe.throw(
+							_("Row #{0}: Finished Good Item is not specified for service item {1}").format(
+								item.idx, item.item_code
+							)
+						)
+					else:
+						if not frappe.get_value("Item", item.fg_item, "is_sub_contracted_item"):
+							frappe.throw(
+								_(
+									"Row #{0}: Finished Good Item {1} must be a sub-contracted item for service item {2}"
+								).format(item.idx, item.fg_item, item.item_code)
+							)
+						elif not frappe.get_value("Item", item.fg_item, "default_bom"):
+							frappe.throw(
+								_("Row #{0}: Default BOM not found for FG Item {1}").format(item.idx, item.fg_item)
+							)
+					if not item.fg_item_qty:
+						frappe.throw(
+							_("Row #{0}: Finished Good Item Qty is not specified for service item {0}").format(
+								item.idx, item.item_code
+							)
+						)
+		else:
 			for item in self.items:
-				if not item.fg_item:
-					frappe.throw(
-						_("Row #{0}: Finished Good Item is not specified for service item {1}").format(
-							item.idx, item.item_code
-						)
-					)
-				else:
-					if not frappe.get_value("Item", item.fg_item, "is_sub_contracted_item"):
-						frappe.throw(
-							_(
-								"Row #{0}: Finished Good Item {1} must be a sub-contracted item for service item {2}"
-							).format(item.idx, item.fg_item, item.item_code)
-						)
-					elif not frappe.get_value("Item", item.fg_item, "default_bom"):
-						frappe.throw(
-							_("Row #{0}: Default BOM not found for FG Item {1}").format(item.idx, item.fg_item)
-						)
-				if not item.fg_item_qty:
-					frappe.throw(
-						_("Row #{0}: Finished Good Item Qty is not specified for service item {0}").format(
-							item.idx, item.item_code
-						)
-					)
+				item.set("fg_item", None)
+				item.set("fg_item_qty", 0)
 
 	def get_schedule_dates(self):
 		for d in self.get("items"):