diff --git a/erpnext/selling/doctype/sales_order/sales_order.py b/erpnext/selling/doctype/sales_order/sales_order.py
index 3648d6edd7d87cc5e27b380ff69dd2973f0d2fbd..7a848891c00d8aab23e72ad5dd7b9c5c7b29ca43 100755
--- a/erpnext/selling/doctype/sales_order/sales_order.py
+++ b/erpnext/selling/doctype/sales_order/sales_order.py
@@ -624,6 +624,17 @@ class SalesOrder(SellingController):
 		if total_picked_qty and total_qty:
 			per_picked = total_picked_qty / total_qty * 100
 
+			pick_percentage = frappe.db.get_single_value("Stock Settings", "over_picking_allowance")
+			if pick_percentage:
+				total_qty += flt(total_qty) * (pick_percentage / 100)
+
+			if total_picked_qty > total_qty:
+				frappe.throw(
+					_(
+						"Total Picked Quantity {0} is more than ordered qty {1}. You can set the Over Picking Allowance in Stock Settings."
+					).format(total_picked_qty, total_qty)
+				)
+
 		self.db_set("per_picked", flt(per_picked), update_modified=False)
 
 	def set_indicator(self):
diff --git a/erpnext/stock/doctype/pick_list/test_pick_list.py b/erpnext/stock/doctype/pick_list/test_pick_list.py
index 91439cb3aa947b76248df42aca23bbd3d50c1384..eb196772fb57991f7fbe42cdd66955a0b17b8d51 100644
--- a/erpnext/stock/doctype/pick_list/test_pick_list.py
+++ b/erpnext/stock/doctype/pick_list/test_pick_list.py
@@ -1177,3 +1177,34 @@ class TestPickList(FrappeTestCase):
 			row.qty = row.qty + 10
 
 		self.assertRaises(frappe.ValidationError, pl.save)
+
+	def test_over_allowance_picking(self):
+		warehouse = "_Test Warehouse - _TC"
+		item = make_item(
+			"Test Over Allowance Picking Item",
+			properties={
+				"is_stock_item": 1,
+			},
+		).name
+
+		make_stock_entry(item=item, to_warehouse=warehouse, qty=100)
+
+		so = make_sales_order(item_code=item, qty=10, rate=100)
+
+		pl_doc = create_pick_list(so.name)
+		pl_doc.save()
+		self.assertEqual(pl_doc.locations[0].qty, 10)
+
+		pl_doc.locations[0].qty = 15
+		pl_doc.locations[0].stock_qty = 15
+		pl_doc.save()
+
+		self.assertEqual(pl_doc.locations[0].qty, 15)
+		self.assertRaises(frappe.ValidationError, pl_doc.submit)
+
+		frappe.db.set_single_value("Stock Settings", "over_picking_allowance", 50)
+
+		pl_doc.reload()
+		pl_doc.submit()
+
+		frappe.db.set_single_value("Stock Settings", "over_picking_allowance", 0)
diff --git a/erpnext/stock/doctype/stock_settings/stock_settings.json b/erpnext/stock/doctype/stock_settings/stock_settings.json
index 95ab885ba11aedaa1398365e38451ad84ab0e47d..e7abe29027347ffcdfa41e6538ddb9401e0e5138 100644
--- a/erpnext/stock/doctype/stock_settings/stock_settings.json
+++ b/erpnext/stock/doctype/stock_settings/stock_settings.json
@@ -26,6 +26,7 @@
   "section_break_9",
   "over_delivery_receipt_allowance",
   "mr_qty_allowance",
+  "over_picking_allowance",
   "column_break_121",
   "role_allowed_to_over_deliver_receive",
   "allow_negative_stock",
@@ -437,6 +438,20 @@
    "fieldname": "do_not_update_serial_batch_on_creation_of_auto_bundle",
    "fieldtype": "Check",
    "label": "Do Not Update Serial / Batch on Creation of Auto Bundle"
+  },
+  {
+   "default": "0",
+   "depends_on": "eval:doc.valuation_method === \"Moving Average\"",
+   "description": "If enabled, the system will use the moving average valuation method to calculate the valuation rate for the batched items and will not consider the individual batch-wise incoming rate.",
+   "fieldname": "do_not_use_batchwise_valuation",
+   "fieldtype": "Check",
+   "label": "Do Not Use Batch-wise Valuation"
+  },
+  {
+   "description": "The percentage you are allowed to pick more items in the pick list than the ordered quantity.",
+   "fieldname": "over_picking_allowance",
+   "fieldtype": "Percent",
+   "label": "Over Picking Allowance"
   }
  ],
  "icon": "uil uil-setting",
@@ -444,7 +459,7 @@
  "index_web_pages_for_search": 1,
  "issingle": 1,
  "links": [],
- "modified": "2024-02-25 16:32:01.084453",
+ "modified": "2024-07-15 17:18:23.872161",
  "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 1572ad5bba4f29955b141e119f4d0c41d78102cd..7a19d24f8732cb7ff29fc587e74a44f1e978bede 100644
--- a/erpnext/stock/doctype/stock_settings/stock_settings.py
+++ b/erpnext/stock/doctype/stock_settings/stock_settings.py
@@ -45,6 +45,7 @@ class StockSettings(Document):
 		mr_qty_allowance: DF.Float
 		naming_series_prefix: DF.Data | None
 		over_delivery_receipt_allowance: DF.Float
+		over_picking_allowance: DF.Percent
 		pick_serial_and_batch_based_on: DF.Literal["FIFO", "LIFO", "Expiry"]
 		reorder_email_notify: DF.Check
 		role_allowed_to_create_edit_back_dated_transactions: DF.Link | None