diff --git a/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.py b/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.py
index d9e62c79318..98a8c594830 100644
--- a/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.py
+++ b/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.py
@@ -327,7 +327,8 @@ class StockReconciliation(StockController):
 
 		if sl_entries:
 			sl_entries.reverse()
-			self.make_sl_entries(sl_entries)
+			allow_negative_stock = frappe.db.get_value("Stock Settings", None, "allow_negative_stock")
+			self.make_sl_entries(sl_entries, allow_negative_stock=allow_negative_stock)
 
 		# repost future entries for selected item_code, warehouse
 		for entries in existing_entries: