diff --git a/erpnext/assets/doctype/asset/asset.py b/erpnext/assets/doctype/asset/asset.py
index b929eda7d6a..6bf76cdb70f 100644
--- a/erpnext/assets/doctype/asset/asset.py
+++ b/erpnext/assets/doctype/asset/asset.py
@@ -592,9 +592,7 @@ class Asset(AccountsController):
 	def set_depreciation_rate(self):
 		for d in self.get("finance_books"):
 			self.validate_asset_finance_books(d)
-			d.rate_of_depreciation = flt(
-				self.get_depreciation_rate(d, on_validate=True), d.precision("rate_of_depreciation")
-			)
+			d.rate_of_depreciation = self.get_depreciation_rate(d, on_validate=True)
 
 	def validate_asset_finance_books(self, row):
 		row.expected_value_after_useful_life = flt(
@@ -984,7 +982,7 @@ class Asset(AccountsController):
 		if isinstance(args, str):
 			args = json.loads(args)
 
-		rate_field_precision = frappe.get_precision(args.doctype, "rate_of_depreciation") or 2
+		rate_field_precision = frappe.get_single_value("System Settings", "float_precision") or 2
 
 		if args.get("depreciation_method") == "Double Declining Balance":
 			return self.get_double_declining_balance_rate(args, rate_field_precision)
diff --git a/erpnext/assets/doctype/asset/test_asset.py b/erpnext/assets/doctype/asset/test_asset.py
index 600f6126f61..4a27d15f94b 100644
--- a/erpnext/assets/doctype/asset/test_asset.py
+++ b/erpnext/assets/doctype/asset/test_asset.py
@@ -826,6 +826,18 @@ class TestAsset(AssetSetup):
 
 
 class TestDepreciationMethods(AssetSetup):
+	@classmethod
+	def setUpClass(cls):
+		super().setUpClass()
+
+		cls._old_float_precision = frappe.db.get_single_value("System Settings", "float_precision")
+		frappe.db.set_single_value("System Settings", "float_precision", 2)
+
+	@classmethod
+	def tearDownClass(cls):
+		frappe.db.set_single_value("System Settings", "float_precision", cls._old_float_precision)
+		super().tearDownClass()
+
 	def test_schedule_for_straight_line_method(self):
 		asset = create_asset(
 			calculate_depreciation=1,
@@ -923,9 +935,9 @@ class TestDepreciationMethods(AssetSetup):
 		self.assertEqual(asset.status, "Draft")
 
 		expected_schedules = [
-			["2030-12-31", 66667.00, 66667.00],
-			["2031-12-31", 22222.11, 88889.11],
-			["2032-12-31", 1110.89, 90000.0],
+			["2030-12-31", 66670.0, 66670.0],
+			["2031-12-31", 22221.11, 88891.11],
+			["2032-12-31", 1108.89, 90000.0],
 		]
 
 		schedules = [
@@ -951,7 +963,7 @@ class TestDepreciationMethods(AssetSetup):
 
 		self.assertEqual(asset.status, "Draft")
 
-		expected_schedules = [["2031-12-31", 33333.50, 83333.50], ["2032-12-31", 6666.50, 90000.0]]
+		expected_schedules = [["2031-12-31", 33335.0, 83335.0], ["2032-12-31", 6665.0, 90000.0]]
 
 		schedules = [
 			[cstr(d.schedule_date), d.depreciation_amount, d.accumulated_depreciation_amount]
@@ -1069,12 +1081,12 @@ class TestDepreciationMethods(AssetSetup):
 		)
 
 		expected_schedules = [
-			["2022-02-28", 337.72, 337.72],
-			["2022-03-31", 675.45, 1013.17],
-			["2022-04-30", 675.45, 1688.62],
-			["2022-05-31", 675.45, 2364.07],
-			["2022-06-30", 675.45, 3039.52],
-			["2022-07-15", 1960.48, 5000.0],
+			["2022-02-28", 337.71, 337.71],
+			["2022-03-31", 675.42, 1013.13],
+			["2022-04-30", 675.42, 1688.55],
+			["2022-05-31", 675.42, 2363.97],
+			["2022-06-30", 675.42, 3039.39],
+			["2022-07-15", 1960.61, 5000.0],
 		]
 
 		schedules = [