diff --git a/erpnext/buying/doctype/buying_settings/buying_settings.json b/erpnext/buying/doctype/buying_settings/buying_settings.json
index b828a43d3cf4..52465c1a962b 100644
--- a/erpnext/buying/doctype/buying_settings/buying_settings.json
+++ b/erpnext/buying/doctype/buying_settings/buying_settings.json
@@ -14,6 +14,7 @@
   "column_break_3",
   "po_required",
   "pr_required",
+  "over_order_allowance",
   "maintain_same_rate",
   "allow_multiple_items",
   "bill_for_rejected_quantity_in_purchase_invoice",
@@ -42,6 +43,23 @@
    "label": "Default Buying Price List",
    "options": "Price List"
   },
+  {
+   "default": "Stop",
+   "depends_on": "maintain_same_rate",
+   "description": "Configure the action to stop the transaction or just warn if the same rate is not maintained.",
+   "fieldname": "maintain_same_rate_action",
+   "fieldtype": "Select",
+   "label": "Action If Same Rate is Not Maintained",
+   "mandatory_depends_on": "maintain_same_rate",
+   "options": "Stop\nWarn"
+  },
+  {
+   "depends_on": "eval:doc.maintain_same_rate_action == 'Stop'",
+   "fieldname": "role_to_override_stop_action",
+   "fieldtype": "Link",
+   "label": "Role Allowed to Override Stop Action",
+   "options": "Role"
+  },
   {
    "fieldname": "column_break_3",
    "fieldtype": "Column Break"
@@ -58,6 +76,13 @@
    "label": "Is Purchase Receipt Required for Purchase Invoice Creation?",
    "options": "No\nYes"
   },
+  {
+   "default": "0",
+   "description": "Percentage you are allowed to order more against the Blanket Order Quantity. For example: If you have a Blanket Order of Quantity 100 units. and your Allowance is 10% then you are allowed to order 110 units.",
+   "fieldname": "over_order_allowance",
+   "fieldtype": "Float",
+   "label": "Over Order Allowance (%)"
+  },
   {
    "default": "0",
    "fieldname": "maintain_same_rate",
@@ -70,6 +95,13 @@
    "fieldtype": "Check",
    "label": "Allow Item To Be Added Multiple Times in a Transaction"
   },
+  {
+   "default": "1",
+   "description": "If checked, Rejected Quantity will be included while making Purchase Invoice from Purchase Receipt.",
+   "fieldname": "bill_for_rejected_quantity_in_purchase_invoice",
+   "fieldtype": "Check",
+   "label": "Bill for Rejected Quantity in Purchase Invoice"
+  },
   {
    "fieldname": "subcontract",
    "fieldtype": "Section Break",
@@ -82,40 +114,16 @@
    "label": "Backflush Raw Materials of Subcontract Based On",
    "options": "BOM\nMaterial Transferred for Subcontract"
   },
+  {
+   "fieldname": "column_break_11",
+   "fieldtype": "Column Break"
+  },
   {
    "depends_on": "eval:doc.backflush_raw_materials_of_subcontract_based_on == \"BOM\"",
    "description": "Percentage you are allowed to transfer more against the quantity ordered. For example: If you have ordered 100 units. and your Allowance is 10% then you are allowed to transfer 110 units.",
    "fieldname": "over_transfer_allowance",
    "fieldtype": "Float",
    "label": "Over Transfer Allowance (%)"
-  },
-  {
-   "fieldname": "column_break_11",
-   "fieldtype": "Column Break"
-  },
-  {
-   "default": "Stop",
-   "depends_on": "maintain_same_rate",
-   "description": "Configure the action to stop the transaction or just warn if the same rate is not maintained.",
-   "fieldname": "maintain_same_rate_action",
-   "fieldtype": "Select",
-   "label": "Action If Same Rate is Not Maintained",
-   "mandatory_depends_on": "maintain_same_rate",
-   "options": "Stop\nWarn"
-  },
-  {
-   "depends_on": "eval:doc.maintain_same_rate_action == 'Stop'",
-   "fieldname": "role_to_override_stop_action",
-   "fieldtype": "Link",
-   "label": "Role Allowed to Override Stop Action",
-   "options": "Role"
-  },
-  {
-   "default": "1",
-   "description": "If checked, Rejected Quantity will be included while making Purchase Invoice from Purchase Receipt.",
-   "fieldname": "bill_for_rejected_quantity_in_purchase_invoice",
-   "fieldtype": "Check",
-   "label": "Bill for Rejected Quantity in Purchase Invoice"
   }
  ],
  "icon": "fa fa-cog",
@@ -123,7 +131,7 @@
  "index_web_pages_for_search": 1,
  "issingle": 1,
  "links": [],
- "modified": "2021-09-08 19:26:23.548837",
+ "modified": "2023-03-22 13:01:49.640869",
  "modified_by": "Administrator",
  "module": "Buying",
  "name": "Buying Settings",
diff --git a/erpnext/buying/doctype/purchase_order/purchase_order.py b/erpnext/buying/doctype/purchase_order/purchase_order.py
index 3888622d563d..9a2495ed4845 100644
--- a/erpnext/buying/doctype/purchase_order/purchase_order.py
+++ b/erpnext/buying/doctype/purchase_order/purchase_order.py
@@ -21,6 +21,9 @@
 from erpnext.accounts.party import get_party_account, get_party_account_currency
 from erpnext.buying.utils import check_on_hold_or_closed_status, validate_for_items
 from erpnext.controllers.buying_controller import BuyingController
+from erpnext.manufacturing.doctype.blanket_order.blanket_order import (
+	validate_against_blanket_order,
+)
 from erpnext.setup.doctype.item_group.item_group import get_item_group_defaults
 from erpnext.stock.doctype.item.item import get_item_defaults, get_last_purchase_details
 from erpnext.stock.stock_balance import get_ordered_qty, update_bin_qty
@@ -72,6 +75,7 @@ def validate(self):
 		self.validate_bom_for_subcontracting_items()
 		self.create_raw_materials_supplied("supplied_items")
 		self.set_received_qty_for_drop_ship_items()
+		validate_against_blanket_order(self)
 		validate_inter_company_party(
 			self.doctype, self.supplier, self.company, self.inter_company_order_reference
 		)
diff --git a/erpnext/manufacturing/doctype/blanket_order/blanket_order.js b/erpnext/manufacturing/doctype/blanket_order/blanket_order.js
index d3bb33e86e0b..7b26a14a57b2 100644
--- a/erpnext/manufacturing/doctype/blanket_order/blanket_order.js
+++ b/erpnext/manufacturing/doctype/blanket_order/blanket_order.js
@@ -7,6 +7,12 @@ frappe.ui.form.on('Blanket Order', {
 	},
 
 	setup: function(frm) {
+		frm.custom_make_buttons = {
+			'Purchase Order': 'Purchase Order',
+			'Sales Order': 'Sales Order',
+			'Quotation': 'Quotation',
+		};
+
 		frm.add_fetch("customer", "customer_name", "customer_name");
 		frm.add_fetch("supplier", "supplier_name", "supplier_name");
 	},
diff --git a/erpnext/manufacturing/doctype/blanket_order/blanket_order.py b/erpnext/manufacturing/doctype/blanket_order/blanket_order.py
index ff2140199de9..32f1c365adef 100644
--- a/erpnext/manufacturing/doctype/blanket_order/blanket_order.py
+++ b/erpnext/manufacturing/doctype/blanket_order/blanket_order.py
@@ -6,6 +6,7 @@
 from frappe import _
 from frappe.model.document import Document
 from frappe.model.mapper import get_mapped_doc
+from frappe.query_builder.functions import Sum
 from frappe.utils import flt, getdate
 
 from erpnext.stock.doctype.item.item import get_item_defaults
@@ -29,21 +30,23 @@ def validate_duplicate_items(self):
 
 	def update_ordered_qty(self):
 		ref_doctype = "Sales Order" if self.blanket_order_type == "Selling" else "Purchase Order"
+
+		trans = frappe.qb.DocType(ref_doctype)
+		trans_item = frappe.qb.DocType(f"{ref_doctype} Item")
+
 		item_ordered_qty = frappe._dict(
-			frappe.db.sql(
-				"""
-			select trans_item.item_code, sum(trans_item.stock_qty) as qty
-			from `tab{0} Item` trans_item, `tab{0}` trans
-			where trans.name = trans_item.parent
-				and trans_item.blanket_order=%s
-				and trans.docstatus=1
-				and trans.status not in ('Closed', 'Stopped')
-			group by trans_item.item_code
-		""".format(
-					ref_doctype
-				),
-				self.name,
-			)
+			(
+				frappe.qb.from_(trans_item)
+				.from_(trans)
+				.select(trans_item.item_code, Sum(trans_item.stock_qty).as_("qty"))
+				.where(
+					(trans.name == trans_item.parent)
+					& (trans_item.blanket_order == self.name)
+					& (trans.docstatus == 1)
+					& (trans.status.notin(["Stopped", "Closed"]))
+				)
+				.groupby(trans_item.item_code)
+			).run()
 		)
 
 		for d in self.items:
@@ -79,7 +82,43 @@ def update_item(source, target, source_parent):
 				"doctype": doctype + " Item",
 				"field_map": {"rate": "blanket_order_rate", "parent": "blanket_order"},
 				"postprocess": update_item,
+				"condition": lambda item: (flt(item.qty) - flt(item.ordered_qty)) > 0,
 			},
 		},
 	)
 	return target_doc
+
+
+def validate_against_blanket_order(order_doc):
+	if order_doc.doctype in ("Sales Order", "Purchase Order"):
+		order_data = {}
+
+		for item in order_doc.get("items"):
+			if item.against_blanket_order and item.blanket_order:
+				if item.blanket_order in order_data:
+					if item.item_code in order_data[item.blanket_order]:
+						order_data[item.blanket_order][item.item_code] += item.qty
+					else:
+						order_data[item.blanket_order][item.item_code] = item.qty
+				else:
+					order_data[item.blanket_order] = {item.item_code: item.qty}
+
+		if order_data:
+			allowance = flt(
+				frappe.db.get_single_value(
+					"Selling Settings" if order_doc.doctype == "Sales Order" else "Buying Settings",
+					"over_order_allowance",
+				)
+			)
+			for bo_name, item_data in order_data.items():
+				bo_doc = frappe.get_doc("Blanket Order", bo_name)
+				for item in bo_doc.get("items"):
+					if item.item_code in item_data:
+						remaining_qty = item.qty - item.ordered_qty
+						allowed_qty = remaining_qty + (remaining_qty * (allowance / 100))
+						if allowed_qty < item_data[item.item_code]:
+							frappe.throw(
+								_("Item {0} cannot be ordered more than {1} against Blanket Order {2}.").format(
+									item.item_code, allowed_qty, bo_name
+								)
+							)
diff --git a/erpnext/manufacturing/doctype/blanket_order/test_blanket_order.py b/erpnext/manufacturing/doctype/blanket_order/test_blanket_order.py
index 2f1f3ae0f52e..58f3c9505989 100644
--- a/erpnext/manufacturing/doctype/blanket_order/test_blanket_order.py
+++ b/erpnext/manufacturing/doctype/blanket_order/test_blanket_order.py
@@ -63,6 +63,33 @@ def test_purchase_order_creation(self):
 		po1.currency = get_company_currency(po1.company)
 		self.assertEqual(po1.items[0].qty, (bo.items[0].qty - bo.items[0].ordered_qty))
 
+	def test_over_order_allowance(self):
+		# Sales Order
+		bo = make_blanket_order(blanket_order_type="Selling", quantity=100)
+
+		frappe.flags.args.doctype = "Sales Order"
+		so = make_order(bo.name)
+		so.currency = get_company_currency(so.company)
+		so.delivery_date = today()
+		so.items[0].qty = 110
+		self.assertRaises(frappe.ValidationError, so.submit)
+
+		frappe.db.set_single_value("Selling Settings", "over_order_allowance", 10)
+		so.submit()
+
+		# Purchase Order
+		bo = make_blanket_order(blanket_order_type="Purchasing", quantity=100)
+
+		frappe.flags.args.doctype = "Purchase Order"
+		po = make_order(bo.name)
+		po.currency = get_company_currency(po.company)
+		po.schedule_date = today()
+		po.items[0].qty = 110
+		self.assertRaises(frappe.ValidationError, po.submit)
+
+		frappe.db.set_single_value("Buying Settings", "over_order_allowance", 10)
+		po.submit()
+
 
 def make_blanket_order(**args):
 	args = frappe._dict(args)
diff --git a/erpnext/selling/doctype/sales_order/sales_order.py b/erpnext/selling/doctype/sales_order/sales_order.py
index 865b9585618c..2f2a06f6fb12 100755
--- a/erpnext/selling/doctype/sales_order/sales_order.py
+++ b/erpnext/selling/doctype/sales_order/sales_order.py
@@ -22,6 +22,9 @@
 )
 from erpnext.accounts.party import get_party_account
 from erpnext.controllers.selling_controller import SellingController
+from erpnext.manufacturing.doctype.blanket_order.blanket_order import (
+	validate_against_blanket_order,
+)
 from erpnext.manufacturing.doctype.production_plan.production_plan import (
 	get_items_for_material_requests,
 )
@@ -53,6 +56,7 @@ def validate(self):
 		self.validate_warehouse()
 		self.validate_drop_ship()
 		self.validate_serial_no_based_delivery()
+		validate_against_blanket_order(self)
 		validate_inter_company_party(
 			self.doctype, self.customer, self.company, self.inter_company_order_reference
 		)
diff --git a/erpnext/selling/doctype/selling_settings/selling_settings.json b/erpnext/selling/doctype/selling_settings/selling_settings.json
index ce976547dcdd..a51993ff7ff0 100644
--- a/erpnext/selling/doctype/selling_settings/selling_settings.json
+++ b/erpnext/selling/doctype/selling_settings/selling_settings.json
@@ -30,12 +30,18 @@
   "so_required",
   "dn_required",
   "sales_update_frequency",
+  "over_order_allowance",
   "allow_multiple_items",
   "allow_against_multiple_purchase_orders",
   "hide_tax_id",
   "allow_sales_order_creation_for_expired_quotation"
  ],
  "fields": [
+  {
+   "fieldname": "customer_defaults_section",
+   "fieldtype": "Section Break",
+   "label": "Customer Defaults"
+  },
   {
    "default": "Customer Name",
    "fieldname": "cust_master_name",
@@ -44,13 +50,6 @@
    "label": "Customer Naming By",
    "options": "Customer Name\nNaming Series\nAuto Name"
   },
-  {
-   "fieldname": "campaign_naming_by",
-   "fieldtype": "Select",
-   "in_list_view": 1,
-   "label": "Campaign Naming By",
-   "options": "Campaign Name\nNaming Series\nAuto Name"
-  },
   {
    "fieldname": "customer_group",
    "fieldtype": "Link",
@@ -58,6 +57,10 @@
    "label": "Default Customer Group",
    "options": "Customer Group"
   },
+  {
+   "fieldname": "column_break_4",
+   "fieldtype": "Column Break"
+  },
   {
    "fieldname": "territory",
    "fieldtype": "Link",
@@ -66,80 +69,50 @@
    "options": "Territory"
   },
   {
-   "fieldname": "selling_price_list",
-   "fieldtype": "Link",
-   "in_list_view": 1,
-   "label": "Default Price List",
-   "options": "Price List"
-  },
-  {
-   "default": "15",
-   "description": "Auto close Opportunity after the no. of days mentioned above",
-   "fieldname": "close_opportunity_after_days",
-   "fieldtype": "Int",
-   "label": "Close Opportunity After Days"
-  },
-  {
-   "fieldname": "default_valid_till",
-   "fieldtype": "Data",
-   "label": "Default Quotation Validity Days"
-  },
-  {
-   "fieldname": "so_required",
-   "fieldtype": "Select",
-   "label": "Is Sales Order Required for Sales Invoice & Delivery Note Creation?",
-   "options": "No\nYes"
+   "fieldname": "crm_settings_section",
+   "fieldtype": "Section Break",
+   "label": "CRM Settings"
   },
   {
-   "fieldname": "dn_required",
+   "fieldname": "campaign_naming_by",
    "fieldtype": "Select",
-   "label": "Is Delivery Note Required for Sales Invoice Creation?",
-   "options": "No\nYes"
+   "in_list_view": 1,
+   "label": "Campaign Naming By",
+   "options": "Campaign Name\nNaming Series\nAuto Name"
   },
   {
-   "default": "Each Transaction",
-   "description": "How often should Project and Company be updated based on Sales Transactions?",
-   "fieldname": "sales_update_frequency",
+   "fieldname": "contract_naming_by",
    "fieldtype": "Select",
-   "label": "Sales Update Frequency",
-   "options": "Each Transaction\nDaily\nMonthly",
-   "reqd": 1
-  },
-  {
-   "default": "0",
-   "fieldname": "maintain_same_sales_rate",
-   "fieldtype": "Check",
-   "label": "Maintain Same Rate Throughout Sales Cycle"
+   "label": "Contract Naming By",
+   "options": "Party Name\nNaming Series"
   },
   {
-   "default": "0",
-   "fieldname": "editable_price_list_rate",
-   "fieldtype": "Check",
-   "label": "Allow User to Edit Price List Rate in Transactions"
+   "fieldname": "default_valid_till",
+   "fieldtype": "Data",
+   "label": "Default Quotation Validity Days"
   },
   {
-   "default": "0",
-   "fieldname": "allow_multiple_items",
-   "fieldtype": "Check",
-   "label": "Allow Item to Be Added Multiple Times in a Transaction"
+   "fieldname": "column_break_9",
+   "fieldtype": "Column Break"
   },
   {
-   "default": "0",
-   "fieldname": "allow_against_multiple_purchase_orders",
-   "fieldtype": "Check",
-   "label": "Allow Multiple Sales Orders Against a Customer's Purchase Order"
+   "default": "15",
+   "description": "Auto close Opportunity after the no. of days mentioned above",
+   "fieldname": "close_opportunity_after_days",
+   "fieldtype": "Int",
+   "label": "Close Opportunity After Days"
   },
   {
-   "default": "0",
-   "fieldname": "validate_selling_price",
-   "fieldtype": "Check",
-   "label": "Validate Selling Price for Item Against Purchase Rate or Valuation Rate"
+   "fieldname": "item_price_settings_section",
+   "fieldtype": "Section Break",
+   "label": "Item Price Settings"
   },
   {
-   "default": "0",
-   "fieldname": "hide_tax_id",
-   "fieldtype": "Check",
-   "label": "Hide Customer's Tax ID from Sales Transactions"
+   "fieldname": "selling_price_list",
+   "fieldtype": "Link",
+   "in_list_view": 1,
+   "label": "Default Price List",
+   "options": "Price List"
   },
   {
    "default": "Stop",
@@ -161,6 +134,24 @@
    "fieldname": "column_break_15",
    "fieldtype": "Column Break"
   },
+  {
+   "default": "0",
+   "fieldname": "maintain_same_sales_rate",
+   "fieldtype": "Check",
+   "label": "Maintain Same Rate Throughout Sales Cycle"
+  },
+  {
+   "default": "0",
+   "fieldname": "editable_price_list_rate",
+   "fieldtype": "Check",
+   "label": "Allow User to Edit Price List Rate in Transactions"
+  },
+  {
+   "default": "0",
+   "fieldname": "validate_selling_price",
+   "fieldtype": "Check",
+   "label": "Validate Selling Price for Item Against Purchase Rate or Valuation Rate"
+  },
   {
    "default": "0",
    "fieldname": "editable_bundle_item_rates",
@@ -168,44 +159,61 @@
    "label": "Calculate Product Bundle Price based on Child Items' Rates"
   },
   {
-   "fieldname": "customer_defaults_section",
+   "fieldname": "sales_transactions_settings_section",
    "fieldtype": "Section Break",
-   "label": "Customer Defaults"
+   "label": "Transaction Settings"
   },
   {
-   "fieldname": "column_break_4",
-   "fieldtype": "Column Break"
+   "fieldname": "so_required",
+   "fieldtype": "Select",
+   "label": "Is Sales Order Required for Sales Invoice & Delivery Note Creation?",
+   "options": "No\nYes"
   },
   {
-   "fieldname": "crm_settings_section",
-   "fieldtype": "Section Break",
-   "label": "CRM Settings"
+   "fieldname": "dn_required",
+   "fieldtype": "Select",
+   "label": "Is Delivery Note Required for Sales Invoice Creation?",
+   "options": "No\nYes"
   },
   {
-   "fieldname": "column_break_9",
-   "fieldtype": "Column Break"
+   "default": "Each Transaction",
+   "description": "How often should Project and Company be updated based on Sales Transactions?",
+   "fieldname": "sales_update_frequency",
+   "fieldtype": "Select",
+   "label": "Sales Update Frequency",
+   "options": "Each Transaction\nDaily\nMonthly",
+   "reqd": 1
   },
   {
-   "fieldname": "item_price_settings_section",
-   "fieldtype": "Section Break",
-   "label": "Item Price Settings"
+   "default": "0",
+   "description": "Percentage you are allowed to order more against the Blanket Order Quantity. For example: If you have a Blanket Order of Quantity 100 units. and your Allowance is 10% then you are allowed to order 110 units.",
+   "fieldname": "over_order_allowance",
+   "fieldtype": "Float",
+   "label": "Over Order Allowance (%)"
   },
   {
-   "fieldname": "sales_transactions_settings_section",
-   "fieldtype": "Section Break",
-   "label": "Transaction Settings"
+   "default": "0",
+   "fieldname": "allow_multiple_items",
+   "fieldtype": "Check",
+   "label": "Allow Item to Be Added Multiple Times in a Transaction"
   },
   {
-   "fieldname": "contract_naming_by",
-   "fieldtype": "Select",
-   "label": "Contract Naming By",
-   "options": "Party Name\nNaming Series"
+   "default": "0",
+   "fieldname": "allow_against_multiple_purchase_orders",
+   "fieldtype": "Check",
+   "label": "Allow Multiple Sales Orders Against a Customer's Purchase Order"
+  },
+  {
+   "default": "0",
+   "fieldname": "hide_tax_id",
+   "fieldtype": "Check",
+   "label": "Hide Customer's Tax ID from Sales Transactions"
   },
   {
-    "default": "0",
-    "fieldname": "allow_sales_order_creation_for_expired_quotation",
-    "fieldtype": "Check",
-    "label": "Allow Sales Order Creation For Expired Quotation"
+   "default": "0",
+   "fieldname": "allow_sales_order_creation_for_expired_quotation",
+   "fieldtype": "Check",
+   "label": "Allow Sales Order Creation For Expired Quotation"
   }
  ],
  "icon": "fa fa-cog",
@@ -213,7 +221,7 @@
  "index_web_pages_for_search": 1,
  "issingle": 1,
  "links": [],
- "modified": "2023-02-04 12:37:53.380857",
+ "modified": "2023-03-22 13:09:38.513317",
  "modified_by": "Administrator",
  "module": "Selling",
  "name": "Selling Settings",