diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index 1a68b66a396..c5f7f32274a 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -460,7 +460,7 @@ class StockEntry(StockController):
 					scrap_material_cost += flt(d.basic_amount)
 
 		number_of_fg_items = len([t.t_warehouse for t in self.get("items") if t.t_warehouse])
-		if number_of_fg_items == 1 or update_finished_item_rate:
+		if (fg_basic_rate == 0.0 and number_of_fg_items == 1) or update_finished_item_rate:
 			self.set_basic_rate_for_finished_goods(raw_material_cost, scrap_material_cost)
 
 	def get_args_for_incoming_rate(self, item):