diff --git a/lib/OpenQA/JobSettings.pm b/lib/OpenQA/JobSettings.pm
index 57d93800deb2..430656631c97 100644
--- a/lib/OpenQA/JobSettings.pm
+++ b/lib/OpenQA/JobSettings.pm
@@ -17,6 +17,35 @@ package OpenQA::JobSettings;
 use strict;
 use warnings;
 
+sub generate_settings {
+    my ($params) = @_;
+    my $settings = $params->{settings};
+    my @worker_class;
+    for my $entity (qw (product machine test_suite job_template)) {
+        next unless $params->{$entity};
+        my @entity_settings = $params->{$entity}->settings;
+        for my $setting (@entity_settings) {
+            if ($setting->key eq 'WORKER_CLASS') {
+                push @worker_class, $setting->value;
+                next;
+            }
+            $settings->{$setting->key} = $setting->value;
+        }
+    }
+    $settings->{WORKER_CLASS} = join ',', sort @worker_class if @worker_class > 0;
+    if (my $input_args = $params->{input_args}) {
+        $settings->{uc $_} = $input_args->{$_} for keys %$input_args;
+    }
+
+    # Prevent the MACHINE was override by input args when doing isos post
+    if (my $machine = $params->{'machine'}) {
+        $settings->{BACKEND} = $machine->backend;
+        $settings->{MACHINE} = $machine->name;
+    }
+    handle_plus_in_settings($settings);
+    return expand_placeholders($settings);
+}
+
 # replace %NAME% with $settings{NAME}
 sub expand_placeholders {
     my ($settings) = @_;
diff --git a/lib/OpenQA/Schema/Result/ScheduledProducts.pm b/lib/OpenQA/Schema/Result/ScheduledProducts.pm
index 996362aa97d2..bbea13aff72e 100644
--- a/lib/OpenQA/Schema/Result/ScheduledProducts.pm
+++ b/lib/OpenQA/Schema/Result/ScheduledProducts.pm
@@ -541,8 +541,6 @@ sub _generate_jobs {
 
             # add properties from dedicated database columns to settings
             $settings{TEST}            = $job_template->name || $job_template->test_suite->name;
-            $settings{MACHINE}         = $job_template->machine->name;
-            $settings{BACKEND}         = $job_template->machine->backend;
             $settings{TEST_SUITE_NAME} = $job_template->test_suite->name;
             $settings{JOB_DESCRIPTION} = $job_template->description if length $job_template->description;
 
diff --git a/t/api/02-iso.t b/t/api/02-iso.t
index 27d296947de6..4b5716c03a8e 100644
--- a/t/api/02-iso.t
+++ b/t/api/02-iso.t
@@ -27,7 +27,6 @@ use OpenQA::Client;
 use OpenQA::Schema::Result::ScheduledProducts;
 use Mojo::IOLoop;
 
-
 OpenQA::Test::Case->new->init_data;
 
 my $t = Test::Mojo->new('OpenQA::WebAPI');
@@ -470,7 +469,7 @@ sub add_opensuse_test {
     my $not_add_test_suite = delete $settings{NOT_ADD_TESTSUITE};
     my @mapped_settings;
     for my $key (keys %settings) {
-        push(@mapped_settings, {key => $key, value => $settings{$key}});
+        push(@mapped_settings, {key => $key, value => $settings{$key}}) if $key ne 'MACHINE';
     }
     $t->app->schema->resultset('TestSuites')->create(
         {
@@ -966,4 +965,27 @@ subtest 'PUBLISH and STORE variables cannot include slashes' => sub {
     $schema->txn_rollback;
 };
 
+subtest 'Expand specified variables when scheduling iso' => sub {
+    $schema->txn_begin;
+    add_opensuse_test(
+        'test',
+        BUILD_HA            => '%BUILD%',
+        BUILD_SDK           => '%BUILD_HA%',
+        SHUTDOWN_NEEDS_AUTH => 1,
+        HDD_1   => '%DISTRI%-%VERSION%-%ARCH%-%BUILD_SDK%@%MACHINE%-minimal_with_sdk%BUILD_SDK%_installed.qcow2',
+        MACHINE => ['32bit', '64bit'],
+    );
+    my $res = schedule_iso({%iso, _GROUP_ID => '1002', TEST => 'test', BUILD => '176.6'}, 200);
+    is($res->json->{count}, 2, 'two job templates were scheduled');
+    $res = schedule_iso({%iso, _GROUP_ID => '1002', TEST => 'test', BUILD => '176.6', MACHINE => '64bit'}, 200);
+    is($res->json->{count}, 1, 'only the job template which machine is 64bit was scheduled');
+    my $result = $jobs->find($res->json->{ids}->[0])->settings_hash;
+    is(
+        $result->{HDD_1},
+        'opensuse-13.1-i586-176.6@64bit-minimal_with_sdk176.6_installed.qcow2',
+        'the specified variables were expanded correctly'
+    );
+    is($result->{BACKEND}, 'qemu', 'the BACKEND was added to settings correctly');
+};
+
 done_testing();