diff --git a/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.json b/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.json
index 4149046..ea9569f 100644
--- a/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.json
+++ b/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.json
@@ -55,6 +55,13 @@
    "label": "Time Between Operations (in mins)", 
    "permlevel": 0, 
    "precision": ""
+  }, 
+  {
+   "fieldname": "over_production_allowance_percentage", 
+   "fieldtype": "Percent", 
+   "label": "Over Production Allowance Percentage", 
+   "permlevel": 0, 
+   "precision": ""
   }
  ], 
  "hide_heading": 0, 
@@ -65,7 +72,7 @@
  "is_submittable": 0, 
  "issingle": 1, 
  "istable": 0, 
- "modified": "2015-04-21 07:57:40.260862", 
+ "modified": "2015-06-15 05:52:22.986958", 
  "modified_by": "Administrator", 
  "module": "Manufacturing", 
  "name": "Manufacturing Settings", 
diff --git a/erpnext/manufacturing/doctype/production_order/production_order.py b/erpnext/manufacturing/doctype/production_order/production_order.py
index ca5f6d9..0274b7e 100644
--- a/erpnext/manufacturing/doctype/production_order/production_order.py
+++ b/erpnext/manufacturing/doctype/production_order/production_order.py
@@ -90,8 +90,9 @@
 			(self.sales_order, self.production_item))[0][0]
 		# total qty in SO
 		so_qty = flt(so_item_qty) + flt(dnpi_qty)
-
-		if total_qty > so_qty:
+		
+		allowance_percentage = flt(frappe.db.get_single_value("Manufacturing Settings", "over_production_allowance_percentage"))
+		if total_qty > so_qty + (allowance_percentage/100 * so_qty):
 			frappe.throw(_("Cannot produce more Item {0} than Sales Order quantity {1}").format(self.production_item,
 				so_qty), OverProductionError)