diff --git a/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py b/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py
index f51254784d9..a0091bb7c6f 100644
--- a/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py
+++ b/erpnext/stock/doctype/serial_and_batch_bundle/serial_and_batch_bundle.py
@@ -1429,6 +1429,9 @@ class SerialandBatchBundle(Document):
 	def throw_negative_batch(self, batch_no, available_qty, precision):
 		from erpnext.stock.stock_ledger import NegativeStockError
 
+		if frappe.db.get_single_value("Stock Settings", "allow_negative_stock_for_batch"):
+			return
+
 		frappe.throw(
 			_(
 				"""
diff --git a/erpnext/stock/doctype/stock_settings/stock_settings.json b/erpnext/stock/doctype/stock_settings/stock_settings.json
index d61c8f575cb..9e6eb8d6f2d 100644
--- a/erpnext/stock/doctype/stock_settings/stock_settings.json
+++ b/erpnext/stock/doctype/stock_settings/stock_settings.json
@@ -47,6 +47,7 @@
   "disable_serial_no_and_batch_selector",
   "use_serial_batch_fields",
   "do_not_update_serial_batch_on_creation_of_auto_bundle",
+  "allow_negative_stock_for_batch",
   "serial_and_batch_bundle_section",
   "set_serial_and_batch_bundle_naming_based_on_naming_series",
   "section_break_gnhq",
@@ -538,6 +539,13 @@
    "fieldname": "validate_material_transfer_warehouses",
    "fieldtype": "Check",
    "label": "Validate Material Transfer Warehouses"
+  },
+  {
+   "default": "0",
+   "description": "If enabled, the system will allow negative stock entries for the batch, but this could calculate the valuation rate incorrectly, so avoid using this option.",
+   "fieldname": "allow_negative_stock_for_batch",
+   "fieldtype": "Check",
+   "label": "Allow Negative Stock for Batch"
   }
  ],
  "icon": "icon-cog",
@@ -545,7 +553,7 @@
  "index_web_pages_for_search": 1,
  "issingle": 1,
  "links": [],
- "modified": "2025-11-11 11:35:39.864923",
+ "modified": "2026-02-09 15:01:12.466175",
  "modified_by": "Administrator",
  "module": "Stock",
  "name": "Stock Settings",
diff --git a/erpnext/stock/doctype/stock_settings/stock_settings.py b/erpnext/stock/doctype/stock_settings/stock_settings.py
index 268d1570b08..0ea1738b60e 100644
--- a/erpnext/stock/doctype/stock_settings/stock_settings.py
+++ b/erpnext/stock/doctype/stock_settings/stock_settings.py
@@ -30,6 +30,7 @@ class StockSettings(Document):
 		allow_from_pr: DF.Check
 		allow_internal_transfer_at_arms_length_price: DF.Check
 		allow_negative_stock: DF.Check
+		allow_negative_stock_for_batch: DF.Check
 		allow_partial_reservation: DF.Check
 		allow_to_edit_stock_uom_qty_for_purchase: DF.Check
 		allow_to_edit_stock_uom_qty_for_sales: DF.Check