diff --git a/erpnext/docs/assets/img/manufacturing/allow-material-consumption.png b/erpnext/docs/assets/img/manufacturing/allow-material-consumption.png
new file mode 100644
index 0000000..3a3f78e
--- /dev/null
+++ b/erpnext/docs/assets/img/manufacturing/allow-material-consumption.png
Binary files differ
diff --git a/erpnext/docs/assets/img/manufacturing/cancel-material-consumption-stock-entry.gif b/erpnext/docs/assets/img/manufacturing/cancel-material-consumption-stock-entry.gif
new file mode 100644
index 0000000..dab2b43
--- /dev/null
+++ b/erpnext/docs/assets/img/manufacturing/cancel-material-consumption-stock-entry.gif
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diff --git a/erpnext/docs/assets/img/manufacturing/material-consumption-button.png b/erpnext/docs/assets/img/manufacturing/material-consumption-button.png
new file mode 100644
index 0000000..2f7ef55
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+++ b/erpnext/docs/assets/img/manufacturing/material-consumption-button.png
Binary files differ
diff --git a/erpnext/docs/assets/img/manufacturing/material-consumption-for-manufacture.png b/erpnext/docs/assets/img/manufacturing/material-consumption-for-manufacture.png
new file mode 100644
index 0000000..46f69bd
--- /dev/null
+++ b/erpnext/docs/assets/img/manufacturing/material-consumption-for-manufacture.png
Binary files differ
diff --git a/erpnext/docs/assets/img/manufacturing/material-consumption-stock-entry.gif b/erpnext/docs/assets/img/manufacturing/material-consumption-stock-entry.gif
new file mode 100644
index 0000000..f036767
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diff --git a/erpnext/docs/user/manual/en/manufacturing/articles/material_consumption.md b/erpnext/docs/user/manual/en/manufacturing/articles/material_consumption.md
new file mode 100644
index 0000000..911e0c4
--- /dev/null
+++ b/erpnext/docs/user/manual/en/manufacturing/articles/material_consumption.md
@@ -0,0 +1,34 @@
+#Material consumption
+
+Material Consumption functionality allows you to have multiple consumption `Stock Entry` against a Work Order. To enable this, go to Manufacturing > Manufacturing Settings.
+
+<img class="screenshot" alt="Item Alternative" src="{{docs_base_url}}/assets/img/manufacturing/allow-material-consumption.png">
+
+Once enabled, a `Material Consumption` button will be available in Work Order once started.
+
+<img class="screenshot" alt="Item Alternative" src="{{docs_base_url}}/assets/img/manufacturing/material-consumption-button.png">
+
+When button is clicked, it will do the following:
+
+1.  It will create Stock Entry with purpose `Material Consumption for Manufacture`.
+
+<img class="screenshot" alt="Item Alternative" src="{{docs_base_url}}/assets/img/manufacturing/material-consumption-for-manufacture.png">
+
+2.  If the "Backflush Raw Materials Based On" in the Manufacturing Settings is set to `BOM`, if will propose to consume all required qty for manufacture.
+3.  If the "Backflush Raw Materials Based On" in the Manufacturing Settings is set to `Material Transferred for Manufacture`, if will propose to consume all transferred qty for manufacture.
+4.  Once submitted, it will update `Consumed Qty` column in the Work Order.
+
+<img class="screenshot" alt="Item Alternative" src="{{docs_base_url}}/assets/img/manufacturing/consumed-qty.png">
+
+5.  In succeeding Material Consumption, it will suggest unconsumed qty.
+6.  Once "Finish" button is clicked in Work Order, it will take into account consumed qty.
+
+### Validations
+
+* If "Allow Multiple Material Consumption" is not set in Manufacturing Settings but "Material Consumption for Manufacture" is use in Stock Entry.
+
+<img class="screenshot" alt="Item Alternative" src="{{docs_base_url}}/assets/img/manufacturing/material-consumption-stock-entry.gif">
+
+* Cannot cancel "Material Consumption for Manufacture" for completed Work Order.
+
+<img class="screenshot" alt="Item Alternative" src="{{docs_base_url}}/assets/img/manufacturing/cancel-material-consumption-stock-entry.gif">
diff --git a/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.js b/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.js
new file mode 100644
index 0000000..ac144e2
--- /dev/null
+++ b/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.js
@@ -0,0 +1,5 @@
+// Copyright (c) 2018, Frappe Technologies Pvt. Ltd. and contributors
+// For license information, please see license.txt
+
+frappe.ui.form.on('Manufacturing Settings', {
+});
diff --git a/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.json b/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.json
index 1fb2bf5..0c0c870 100644
--- a/erpnext/manufacturing/doctype/manufacturing_settings/manufacturing_settings.json
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-   "collapsible": 0, 
-   "columns": 0, 
-   "default": "BOM", 
-   "fieldname": "backflush_raw_materials_based_on", 
-   "fieldtype": "Select", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "label": "Backflush Raw Materials Based On", 
-   "length": 0, 
-   "no_copy": 0, 
-   "options": "BOM\nMaterial Transferred for Manufacture", 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
+   "allow_bulk_edit": 0,
+   "allow_on_submit": 0,
+   "bold": 0,
+   "collapsible": 0,
+   "columns": 0,
+   "default": "BOM",
+   "fieldname": "backflush_raw_materials_based_on",
+   "fieldtype": "Select",
+   "hidden": 0,
+   "ignore_user_permissions": 0,
+   "ignore_xss_filter": 0,
+   "in_filter": 0,
+   "in_global_search": 0,
+   "in_list_view": 0,
+   "in_standard_filter": 0,
+   "label": "Backflush Raw Materials Based On",
+   "length": 0,
+   "no_copy": 0,
+   "options": "BOM\nMaterial Transferred for Manufacture",
+   "permlevel": 0,
+   "precision": "",
+   "print_hide": 0,
+   "print_hide_if_no_value": 0,
+   "read_only": 0,
+   "remember_last_selected_value": 0,
+   "report_hide": 0,
+   "reqd": 0,
+   "search_index": 0,
+   "set_only_once": 0,
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
-   "description": "Update BOM cost automatically via Scheduler, based on latest valuation rate / price list rate / last purchase rate of raw materials.", 
-   "fieldname": "update_bom_costs_automatically", 
-   "fieldtype": "Check", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "label": "Update BOM Cost Automatically", 
-   "length": 0, 
-   "no_copy": 0, 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
+   "allow_bulk_edit": 0,
+   "allow_on_submit": 0,
+   "bold": 0,
+   "collapsible": 0,
+   "columns": 0,
+   "description": "Allow multiple Material Consumption against a Work Order",
+   "fieldname": "material_consumption",
+   "fieldtype": "Check",
+   "hidden": 0,
+   "ignore_user_permissions": 0,
+   "ignore_xss_filter": 0,
+   "in_filter": 0,
+   "in_global_search": 0,
+   "in_list_view": 0,
+   "in_standard_filter": 0,
+   "label": "Allow Multiple Material Consumption",
+   "length": 0,
+   "no_copy": 0,
+   "permlevel": 0,
+   "precision": "",
+   "print_hide": 0,
+   "print_hide_if_no_value": 0,
+   "read_only": 0,
+   "remember_last_selected_value": 0,
+   "report_hide": 0,
+   "reqd": 0,
+   "search_index": 0,
+   "set_only_once": 0,
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
-   "fieldname": "column_break_11", 
-   "fieldtype": "Column Break", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "length": 0, 
-   "no_copy": 0, 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
+   "allow_bulk_edit": 0,
+   "allow_on_submit": 0,
+   "bold": 0,
+   "collapsible": 0,
+   "columns": 0,
+   "description": "Update BOM cost automatically via Scheduler, based on latest valuation rate / price list rate / last purchase rate of raw materials.",
+   "fieldname": "update_bom_costs_automatically",
+   "fieldtype": "Check",
+   "hidden": 0,
+   "ignore_user_permissions": 0,
+   "ignore_xss_filter": 0,
+   "in_filter": 0,
+   "in_global_search": 0,
+   "in_list_view": 0,
+   "in_standard_filter": 0,
+   "label": "Update BOM Cost Automatically",
+   "length": 0,
+   "no_copy": 0,
+   "permlevel": 0,
+   "precision": "",
+   "print_hide": 0,
+   "print_hide_if_no_value": 0,
+   "read_only": 0,
+   "remember_last_selected_value": 0,
+   "report_hide": 0,
+   "reqd": 0,
+   "search_index": 0,
+   "set_only_once": 0,
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
-   "fieldname": "default_wip_warehouse", 
-   "fieldtype": "Link", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "label": "Default Work In Progress Warehouse", 
-   "length": 0, 
-   "no_copy": 0, 
-   "options": "Warehouse", 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
+   "allow_bulk_edit": 0,
+   "allow_on_submit": 0,
+   "bold": 0,
+   "collapsible": 0,
+   "columns": 0,
+   "fieldname": "column_break_11",
+   "fieldtype": "Column Break",
+   "hidden": 0,
+   "ignore_user_permissions": 0,
+   "ignore_xss_filter": 0,
+   "in_filter": 0,
+   "in_global_search": 0,
+   "in_list_view": 0,
+   "in_standard_filter": 0,
+   "length": 0,
+   "no_copy": 0,
+   "permlevel": 0,
+   "precision": "",
+   "print_hide": 0,
+   "print_hide_if_no_value": 0,
+   "read_only": 0,
+   "remember_last_selected_value": 0,
+   "report_hide": 0,
+   "reqd": 0,
+   "search_index": 0,
+   "set_only_once": 0,
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
-   "fieldname": "default_fg_warehouse", 
-   "fieldtype": "Link", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "label": "Default Finished Goods Warehouse", 
-   "length": 0, 
-   "no_copy": 0, 
-   "options": "Warehouse", 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
+   "allow_bulk_edit": 0,
+   "allow_on_submit": 0,
+   "bold": 0,
+   "collapsible": 0,
+   "columns": 0,
+   "fieldname": "default_wip_warehouse",
+   "fieldtype": "Link",
+   "hidden": 0,
+   "ignore_user_permissions": 0,
+   "ignore_xss_filter": 0,
+   "in_filter": 0,
+   "in_global_search": 0,
+   "in_list_view": 0,
+   "in_standard_filter": 0,
+   "label": "Default Work In Progress Warehouse",
+   "length": 0,
+   "no_copy": 0,
+   "options": "Warehouse",
+   "permlevel": 0,
+   "precision": "",
+   "print_hide": 0,
+   "print_hide_if_no_value": 0,
+   "read_only": 0,
+   "remember_last_selected_value": 0,
+   "report_hide": 0,
+   "reqd": 0,
+   "search_index": 0,
+   "set_only_once": 0,
+   "translatable": 0,
+   "unique": 0
+  },
+  {
+   "allow_bulk_edit": 0,
+   "allow_on_submit": 0,
+   "bold": 0,
+   "collapsible": 0,
+   "columns": 0,
+   "fieldname": "default_fg_warehouse",
+   "fieldtype": "Link",
+   "hidden": 0,
+   "ignore_user_permissions": 0,
+   "ignore_xss_filter": 0,
+   "in_filter": 0,
+   "in_global_search": 0,
+   "in_list_view": 0,
+   "in_standard_filter": 0,
+   "label": "Default Finished Goods Warehouse",
+   "length": 0,
+   "no_copy": 0,
+   "options": "Warehouse",
+   "permlevel": 0,
+   "precision": "",
+   "print_hide": 0,
+   "print_hide_if_no_value": 0,
+   "read_only": 0,
+   "remember_last_selected_value": 0,
+   "report_hide": 0,
+   "reqd": 0,
+   "search_index": 0,
+   "set_only_once": 0,
+   "translatable": 0,
    "unique": 0
   }
- ], 
- "has_web_view": 0, 
- "hide_heading": 0, 
- "hide_toolbar": 0, 
- "icon": "icon-wrench", 
- "idx": 0, 
- "image_view": 0, 
- "in_create": 0, 
- "is_submittable": 0, 
- "issingle": 1, 
- "istable": 0, 
- "max_attachments": 0, 
- "menu_index": 0, 
- "modified": "2018-02-16 13:18:17.964103",
- "modified_by": "Administrator", 
- "module": "Manufacturing", 
- "name": "Manufacturing Settings", 
- "name_case": "", 
- "owner": "Administrator", 
+ ],
+ "has_web_view": 0,
+ "hide_heading": 0,
+ "hide_toolbar": 0,
+ "icon": "icon-wrench",
+ "idx": 0,
+ "image_view": 0,
+ "in_create": 0,
+ "is_submittable": 0,
+ "issingle": 1,
+ "istable": 0,
+ "max_attachments": 0,
+ "menu_index": 0,
+ "modified": "2018-03-28 13:56:31.187520",
+ "modified_by": "Administrator",
+ "module": "Manufacturing",
+ "name": "Manufacturing Settings",
+ "name_case": "",
+ "owner": "Administrator",
  "permissions": [
   {
-   "amend": 0, 
-   "apply_user_permissions": 0, 
-   "cancel": 0, 
-   "create": 1, 
-   "delete": 0, 
-   "email": 0, 
-   "export": 0, 
-   "if_owner": 0, 
-   "import": 0, 
-   "permlevel": 0, 
-   "print": 0, 
-   "read": 1, 
-   "report": 0, 
-   "role": "Manufacturing Manager", 
-   "set_user_permissions": 0, 
-   "share": 1, 
-   "submit": 0, 
+   "amend": 0,
+   "apply_user_permissions": 0,
+   "cancel": 0,
+   "create": 1,
+   "delete": 0,
+   "email": 0,
+   "export": 0,
+   "if_owner": 0,
+   "import": 0,
+   "permlevel": 0,
+   "print": 0,
+   "read": 1,
+   "report": 0,
+   "role": "Manufacturing Manager",
+   "set_user_permissions": 0,
+   "share": 1,
+   "submit": 0,
    "write": 1
   }
- ], 
- "quick_entry": 0, 
- "read_only": 0, 
- "read_only_onload": 0, 
- "show_name_in_global_search": 0, 
- "sort_field": "modified", 
- "sort_order": "DESC", 
- "track_changes": 1, 
+ ],
+ "quick_entry": 0,
+ "read_only": 0,
+ "read_only_onload": 0,
+ "show_name_in_global_search": 0,
+ "sort_field": "modified",
+ "sort_order": "DESC",
+ "track_changes": 1,
  "track_seen": 0
 }
\ No newline at end of file
diff --git a/erpnext/manufacturing/doctype/manufacturing_settings/test_manufacturing_settings.py b/erpnext/manufacturing/doctype/manufacturing_settings/test_manufacturing_settings.py
new file mode 100644
index 0000000..7391f65
--- /dev/null
+++ b/erpnext/manufacturing/doctype/manufacturing_settings/test_manufacturing_settings.py
@@ -0,0 +1,9 @@
+# -*- coding: utf-8 -*-
+# Copyright (c) 2018, Frappe Technologies Pvt. Ltd. and Contributors
+# See license.txt
+from __future__ import unicode_literals
+
+import unittest
+
+class TestManufacturingSettings(unittest.TestCase):
+	pass
diff --git a/erpnext/manufacturing/doctype/work_order/test_work_order.py b/erpnext/manufacturing/doctype/work_order/test_work_order.py
index 6b43c63..fc9986b 100644
--- a/erpnext/manufacturing/doctype/work_order/test_work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/test_work_order.py
@@ -60,6 +60,7 @@
 
 	def test_over_production(self):
 		from erpnext.manufacturing.doctype.work_order.work_order import StockOverProductionError
+
 		wo_doc = self.check_planned_qty()
 
 		test_stock_entry.make_stock_entry(item_code="_Test Item",
@@ -300,6 +301,7 @@
 	wo_order.company = args.company or "_Test Company"
 	wo_order.stock_uom = args.stock_uom or "_Test UOM"
 	wo_order.use_multi_level_bom=0
+	wo_order.skip_transfer=1
 	wo_order.get_items_and_operations_from_bom()
 
 	if args.source_warehouse:
diff --git a/erpnext/manufacturing/doctype/work_order/work_order.js b/erpnext/manufacturing/doctype/work_order/work_order.js
index a1ebca0..3b91080 100644
--- a/erpnext/manufacturing/doctype/work_order/work_order.js
+++ b/erpnext/manufacturing/doctype/work_order/work_order.js
@@ -7,7 +7,7 @@
 			'Timesheet': 'Make Timesheet',
 			'Stock Entry': 'Make Stock Entry',
 		}
-		
+
 		// Set query for warehouses
 		frm.set_query("wip_warehouse", function(doc) {
 			return {
@@ -16,7 +16,7 @@
 				}
 			}
 		});
-		
+
 		frm.set_query("source_warehouse", function() {
 			return {
 				filters: {
@@ -24,7 +24,7 @@
 				}
 			}
 		});
-		
+
 		frm.set_query("source_warehouse", "required_items", function() {
 			return {
 				filters: {
@@ -32,7 +32,7 @@
 				}
 			}
 		});
-		
+
 		frm.set_query("fg_warehouse", function() {
 			return {
 				filters: {
@@ -41,7 +41,7 @@
 				}
 			}
 		});
-		
+
 		frm.set_query("scrap_warehouse", function() {
 			return {
 				filters: {
@@ -50,7 +50,7 @@
 				}
 			}
 		});
-		
+
 		// Set query for BOM
 		frm.set_query("bom_no", function() {
 			if (frm.doc.production_item) {
@@ -60,7 +60,7 @@
 				}
 			} else msgprint(__("Please enter Production Item first"));
 		});
-		
+
 		// Set query for FG Item
 		frm.set_query("production_item", function() {
 			return {
@@ -84,7 +84,7 @@
 		frm.set_indicator_formatter('operation',
 			function(doc) { return (frm.doc.qty==doc.completed_qty) ? "green" : "orange" });
 	},
-	
+
 	onload: function(frm) {
 		if (!frm.doc.status)
 			frm.doc.status = 'Draft';
@@ -122,7 +122,7 @@
 			})
 		}
 	},
-	
+
 	show_progress: function(frm) {
 		var bars = [];
 		var message = '';
@@ -156,7 +156,7 @@
 		}
 		frm.dashboard.add_progress(__('Status'), bars, message);
 	},
-	
+
 	production_item: function(frm) {
 		if (frm.doc.production_item) {
 			frappe.call({
@@ -184,13 +184,13 @@
 			});
 		}
 	},
-	
+
 	project: function(frm) {
 		if(!erpnext.in_production_item_onchange) {
 			frm.trigger("production_item");
 		}
 	},
-	
+
 	bom_no: function(frm) {
 		return frm.call({
 			doc: frm.doc,
@@ -203,7 +203,7 @@
 			}
 		});
 	},
-	
+
 	use_multi_level_bom: function(frm) {
 		if(frm.doc.bom_no) {
 			frm.trigger("bom_no");
@@ -213,7 +213,7 @@
 	qty: function(frm) {
 		frm.trigger('bom_no');
 	},
-	
+
 	before_submit: function(frm) {
 		frm.toggle_reqd(["fg_warehouse", "wip_warehouse"], true);
 		frm.fields_dict.required_items.grid.toggle_reqd("source_warehouse", true);
@@ -251,7 +251,7 @@
 					item_code: row.item_code,
 					warehouse: row.source_warehouse
 				},
-				callback: function (r) {			
+				callback: function (r) {
 					frappe.model.set_value(row.doctype, row.name,
 						"available_qty_at_source_warehouse", r.message);
 				}
@@ -310,21 +310,42 @@
 			}
 
 			if(!frm.doc.skip_transfer){
-				if ((flt(doc.produced_qty) < flt(doc.material_transferred_for_manufacturing))
-						&& frm.doc.status != 'Stopped') {
-					frm.has_finish_btn = true;
-					var finish_btn = frm.add_custom_button(__('Finish'), function() {
-						erpnext.work_order.make_se(frm, 'Manufacture');
-					});
+				// If "Material Consumption is check in Manufacturing Settings, allow Material Consumption
+				frappe.model.get_value('Manufacturing Settings', {'name': 'Manufacturing Settings'}, 'material_consumption', function(d) {
+					if ((flt(doc.produced_qty) < flt(doc.material_transferred_for_manufacturing))
+					&& frm.doc.status != 'Stopped') {
+						frm.has_finish_btn = true;
 
-					if(doc.material_transferred_for_manufacturing==doc.qty) {
-						// all materials transferred for manufacturing, make this primary
-						finish_btn.addClass('btn-primary');
+						if (d.material_consumption == 1) {
+							// Only show "Material Consumption" when required_qty > consumed_qty
+							var counter = 0;
+							var tbl = frm.doc.required_items || [];
+							var tbl_lenght = tbl.length;
+							for (var i = 0, len = tbl_lenght; i < len; i++) {
+								if (flt(frm.doc.required_items[i].required_qty) > flt(frm.doc.required_items[i].consumed_qty)) {
+									counter += 1;
+								}
+							}
+							if (counter > 0) {
+								var consumption_btn = frm.add_custom_button(__('Material Consumption'), function() {
+									erpnext.work_order.make_consumption_se(frm, d.backflush_raw_materials_based_on);
+								});
+								consumption_btn.addClass('btn-primary');
+							}
+						}
+
+						var finish_btn = frm.add_custom_button(__('Finish'), function() {
+							erpnext.work_order.make_se(frm, 'Manufacture');
+						});
+
+						if(doc.material_transferred_for_manufacturing==doc.qty) {
+							// all materials transferred for manufacturing, make this primary
+							finish_btn.addClass('btn-primary');
+						}
 					}
-				}
+				})
 			} else {
 				if ((flt(doc.produced_qty) < flt(doc.qty)) && frm.doc.status != 'Stopped') {
-					frm.has_finish_btn = true;
 					var finish_btn = frm.add_custom_button(__('Finish'), function() {
 						erpnext.work_order.make_se(frm, 'Manufacture');
 					});
@@ -367,7 +388,7 @@
 			});
 		}
 	},
-	
+
 	make_se: function(frm, purpose) {
 		if(!frm.doc.skip_transfer){
 			var max = (purpose === "Manufacture") ?
@@ -399,7 +420,31 @@
 			});
 		}, __("Select Quantity"), __("Make"));
 	},
-	
+
+	make_consumption_se: function(frm, backflush_raw_materials_based_on) {
+		if(!frm.doc.skip_transfer){
+			var max = (backflush_raw_materials_based_on === "Material Transferred for Manufacture") ?
+				flt(frm.doc.material_transferred_for_manufacturing) - flt(frm.doc.produced_qty) :
+				flt(frm.doc.qty) - flt(frm.doc.produced_qty);
+				// flt(frm.doc.qty) - flt(frm.doc.material_transferred_for_manufacturing);
+		} else {
+			var max = flt(frm.doc.qty) - flt(frm.doc.produced_qty);
+		}
+
+		frappe.call({
+			method:"erpnext.manufacturing.doctype.work_order.work_order.make_stock_entry",
+			args: {
+				"work_order_id": frm.doc.name,
+				"purpose": "Material Consumption for Manufacture",
+				"qty": max
+			},
+			callback: function(r) {
+				var doclist = frappe.model.sync(r.message);
+				frappe.set_route("Form", doclist[0].doctype, doclist[0].name);
+			}
+		});
+	},
+
 	stop_work_order: function(frm, status) {
 		frappe.call({
 			method: "erpnext.manufacturing.doctype.work_order.work_order.stop_unstop",
diff --git a/erpnext/manufacturing/doctype/work_order/work_order.py b/erpnext/manufacturing/doctype/work_order/work_order.py
index bb773ab..8b53fc3 100644
--- a/erpnext/manufacturing/doctype/work_order/work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/work_order.py
@@ -64,7 +64,7 @@
 						so.name, so_item.delivery_date, so.project
 					from
 						`tabSales Order` so, `tabSales Order Item` so_item, `tabPacked Item` packed_item
-					where so.name=%s 
+					where so.name=%s
 						and so.name=so_item.parent
 						and so.name=packed_item.parent
 						and so_item.item_code = packed_item.parent_item
@@ -88,7 +88,7 @@
 			self.wip_warehouse = frappe.db.get_single_value("Manufacturing Settings", "default_wip_warehouse")
 		if not self.fg_warehouse:
 			self.fg_warehouse = frappe.db.get_single_value("Manufacturing Settings", "default_fg_warehouse")
-	
+
 	def validate_warehouse_belongs_to_company(self):
 		warehouses = [self.fg_warehouse, self.wip_warehouse]
 		for d in self.get("required_items"):
@@ -184,7 +184,7 @@
 				and purpose=%s""", (self.name, purpose))[0][0])
 
 			if qty > self.qty:
-				frappe.throw(_("{0} ({1}) cannot be greater than planned quanitity ({2}) in Work Order {3}").format(\
+				frappe.throw(_("{0} ({1}) cannot be greater than planned quantity ({2}) in Work Order {3}").format(\
 					self.meta.get_label(fieldname), qty, self.qty, self.name), StockOverProductionError)
 
 			self.db_set(fieldname, qty)
@@ -449,6 +449,9 @@
 			# update in bin
 			self.update_reserved_qty_for_production()
 
+		# calculate consumed qty based on submitted stock entries
+		self.update_consumed_qty_for_required_items()
+
 	def update_reserved_qty_for_production(self, items=None):
 		'''update reserved_qty_for_production in bins'''
 		for d in self.required_items:
@@ -515,6 +518,24 @@
 
 			d.db_set('transferred_qty', flt(transferred_qty), update_modified = False)
 
+	def update_consumed_qty_for_required_items(self):
+		'''update consumed qty from submitted stock entries for that item against
+			the work order'''
+
+		for d in self.required_items:
+			consumed_qty = frappe.db.sql('''select sum(qty)
+				from `tabStock Entry` entry, `tabStock Entry Detail` detail
+				where
+					entry.work_order = %s
+					and (entry.purpose = "Material Consumption for Manufacture"
+					or entry.purpose = "Manufacture")
+					and entry.docstatus = 1
+					and detail.parent = entry.name
+					and detail.item_code = %s''', (self.name, d.item_code))[0][0]
+
+			d.db_set('consumed_qty', flt(consumed_qty), update_modified = False)
+
+
 @frappe.whitelist()
 def get_item_details(item, project = None):
 	res = frappe.db.sql("""
@@ -600,9 +621,10 @@
 	else:
 		stock_entry.from_warehouse = wip_warehouse
 		stock_entry.to_warehouse = work_order.fg_warehouse
-		additional_costs = get_additional_costs(work_order, fg_qty=stock_entry.fg_completed_qty)
 		stock_entry.project = work_order.project
-		stock_entry.set("additional_costs", additional_costs)
+		if purpose=="Manufacture":
+			additional_costs = get_additional_costs(work_order, fg_qty=stock_entry.fg_completed_qty)
+			stock_entry.set("additional_costs", additional_costs)
 
 	stock_entry.get_items()
 	return stock_entry.as_dict()
@@ -668,5 +690,5 @@
 		select distinct so.name from `tabSales Order` so, `tabPacked Item` pi_item
 		where pi_item.parent=so.name and pi_item.item_code=%s and so.docstatus=1
 	""", (production_item, production_item))
-	
+
 	return out
diff --git a/erpnext/manufacturing/doctype/work_order_item/work_order_item.json b/erpnext/manufacturing/doctype/work_order_item/work_order_item.json
index 2f89a3d..7dea50d 100644
--- a/erpnext/manufacturing/doctype/work_order_item/work_order_item.json
+++ b/erpnext/manufacturing/doctype/work_order_item/work_order_item.json
@@ -1,16 +1,16 @@
 {
- "allow_copy": 0, 
- "allow_guest_to_view": 0, 
- "allow_import": 0, 
- "allow_rename": 0, 
- "beta": 0, 
- "creation": "2016-04-18 07:38:26.314642", 
- "custom": 0, 
- "docstatus": 0, 
- "doctype": "DocType", 
- "document_type": "", 
- "editable_grid": 1, 
- "engine": "InnoDB", 
+ "allow_copy": 0,
+ "allow_guest_to_view": 0,
+ "allow_import": 0,
+ "allow_rename": 0,
+ "beta": 0,
+ "creation": "2016-04-18 07:38:26.314642",
+ "custom": 0,
+ "docstatus": 0,
+ "doctype": "DocType",
+ "document_type": "",
+ "editable_grid": 1,
+ "engine": "InnoDB",
  "fields": [
   {
    "allow_bulk_edit": 0, 
@@ -41,9 +41,9 @@
    "reqd": 0, 
    "search_index": 0, 
    "set_only_once": 0, 
-   "translatable": 0, 
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
    "allow_bulk_edit": 0, 
    "allow_on_submit": 0, 
@@ -73,9 +73,9 @@
    "reqd": 0, 
    "search_index": 0, 
    "set_only_once": 0, 
-   "translatable": 0, 
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
    "allow_bulk_edit": 0, 
    "allow_on_submit": 0, 
@@ -103,9 +103,9 @@
    "reqd": 0, 
    "search_index": 0, 
    "set_only_once": 0, 
-   "translatable": 0, 
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
    "allow_bulk_edit": 0, 
    "allow_on_submit": 0, 
@@ -134,9 +134,9 @@
    "reqd": 0, 
    "search_index": 0, 
    "set_only_once": 0, 
-   "translatable": 0, 
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
    "allow_bulk_edit": 0, 
    "allow_on_submit": 0, 
@@ -165,9 +165,9 @@
    "reqd": 0, 
    "search_index": 0, 
    "set_only_once": 0, 
-   "translatable": 0, 
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
    "allow_bulk_edit": 0, 
    "allow_on_submit": 0, 
@@ -196,9 +196,9 @@
    "reqd": 0, 
    "search_index": 0, 
    "set_only_once": 0, 
-   "translatable": 0, 
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
    "allow_bulk_edit": 0, 
    "allow_on_submit": 0, 
@@ -227,9 +227,9 @@
    "reqd": 0, 
    "search_index": 0, 
    "set_only_once": 0, 
-   "translatable": 0, 
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
    "allow_bulk_edit": 0, 
    "allow_on_submit": 0, 
@@ -290,39 +290,41 @@
    "reqd": 0, 
    "search_index": 0, 
    "set_only_once": 0, 
-   "translatable": 0, 
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
-   "fieldname": "column_break_9", 
-   "fieldtype": "Column Break", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "length": 0, 
-   "no_copy": 0, 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "translatable": 0, 
+   "allow_bulk_edit": 0,
+   "allow_on_submit": 0,
+   "bold": 0,
+   "collapsible": 0,
+   "columns": 0,
+   "depends_on": "eval:!parent.skip_transfer",
+   "fieldname": "consumed_qty",
+   "fieldtype": "Float",
+   "hidden": 0,
+   "ignore_user_permissions": 0,
+   "ignore_xss_filter": 0,
+   "in_filter": 0,
+   "in_global_search": 0,
+   "in_list_view": 1,
+   "in_standard_filter": 0,
+   "label": "Consumed Qty",
+   "length": 0,
+   "no_copy": 0,
+   "permlevel": 0,
+   "precision": "",
+   "print_hide": 0,
+   "print_hide_if_no_value": 0,
+   "read_only": 1,
+   "remember_last_selected_value": 0,
+   "report_hide": 0,
+   "reqd": 0,
+   "search_index": 0,
+   "set_only_once": 0,
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
    "allow_bulk_edit": 0, 
    "allow_on_submit": 0, 
@@ -351,14 +353,14 @@
    "reqd": 0, 
    "search_index": 0, 
    "set_only_once": 0, 
-   "translatable": 0, 
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
+   "allow_bulk_edit": 0,
+   "allow_on_submit": 0,
+   "bold": 0,
+   "collapsible": 0,
    "columns": 0, 
    "fieldname": "available_qty_at_wip_warehouse", 
    "fieldtype": "Float", 
@@ -398,17 +400,17 @@
  "max_attachments": 0, 
  "modified": "2018-03-05 13:07:07.530725", 
  "modified_by": "Administrator", 
- "module": "Manufacturing", 
+ "module": "Manufacturing",
  "name": "Work Order Item",
- "name_case": "", 
- "owner": "Administrator", 
- "permissions": [], 
- "quick_entry": 1, 
- "read_only": 0, 
- "read_only_onload": 0, 
- "show_name_in_global_search": 0, 
- "sort_field": "modified", 
- "sort_order": "DESC", 
- "track_changes": 1, 
+ "name_case": "",
+ "owner": "Administrator",
+ "permissions": [],
+ "quick_entry": 1,
+ "read_only": 0,
+ "read_only_onload": 0,
+ "show_name_in_global_search": 0,
+ "sort_field": "modified",
+ "sort_order": "DESC",
+ "track_changes": 1,
  "track_seen": 0
 }
\ No newline at end of file
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.js b/erpnext/stock/doctype/stock_entry/stock_entry.js
index 0979fe7..7452da8 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.js
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.js
@@ -95,6 +95,7 @@
 
 	refresh: function(frm) {
 		if(!frm.doc.docstatus) {
+			frm.trigger('validate_purpose_consumption');
 			frm.add_custom_button(__('Make Material Request'), function() {
 				frappe.model.with_doctype('Material Request', function() {
 					var mr = frappe.model.get_new_doc('Material Request');
@@ -168,10 +169,20 @@
 	},
 
 	purpose: function(frm) {
+		frm.trigger('validate_purpose_consumption');
 		frm.fields_dict.items.grid.refresh();
 		frm.cscript.toggle_related_fields(frm.doc);
 	},
 
+	validate_purpose_consumption: function(frm) {
+		frappe.model.get_value('Manufacturing Settings', {'name': 'Manufacturing Settings'}, 'material_consumption', function(d) {
+			if (d.material_consumption==0 && frm.doc.purpose=="Material Consumption for Manufacture") {
+				frm.set_value("purpose", 'Manufacture');
+				frappe.throw(__('Material Consumption is not set in Manufacturing Settings.'));
+			}
+		})
+	},
+
 	company: function(frm) {
 		if(frm.doc.company) {
 			var company_doc = frappe.get_doc(":Company", frm.doc.company);
@@ -519,11 +530,11 @@
 		}
 
 		this.frm.set_indicator_formatter('item_code',
-			function(doc) { 
+			function(doc) {
 				if (!doc.s_warehouse) {
 					return 'blue';
 				} else {
-					return (doc.qty<=doc.actual_qty) ? "green" : "orange" 
+					return (doc.qty<=doc.actual_qty) ? "green" : "orange"
 				}
 			})
 
@@ -592,7 +603,8 @@
 	clean_up: function() {
 		// Clear Work Order record from locals, because it is updated via Stock Entry
 		if(this.frm.doc.work_order &&
-				in_list(["Manufacture", "Material Transfer for Manufacture"], this.frm.doc.purpose)) {
+			in_list(["Manufacture", "Material Transfer for Manufacture", "Material Consumption for Manufacture"],
+				this.frm.doc.purpose)) {
 			frappe.model.remove_from_locals("Work Order",
 				this.frm.doc.work_order);
 		}
@@ -637,16 +649,17 @@
 						me.frm.set_value("to_warehouse", r.message["wip_warehouse"]);
 
 
-					if (me.frm.doc.purpose == "Manufacture") {
-						if(r.message["additional_costs"].length) {
-							$.each(r.message["additional_costs"], function(i, row) {
-								me.frm.add_child("additional_costs", row);
-							})
-							refresh_field("additional_costs");
+					if (me.frm.doc.purpose == "Manufacture" || me.frm.doc.purpose == "Material Consumption for Manufacture" ) {
+						if (me.frm.doc.purpose == "Manufacture") {
+							if (!me.frm.doc.to_warehouse) me.frm.set_value("to_warehouse", r.message["fg_warehouse"]);
+							if (r.message["additional_costs"].length) {
+								$.each(r.message["additional_costs"], function(i, row) {
+									me.frm.add_child("additional_costs", row);
+								})
+								refresh_field("additional_costs");
+							}
 						}
-
 						if (!me.frm.doc.from_warehouse) me.frm.set_value("from_warehouse", r.message["wip_warehouse"]);
-						if (!me.frm.doc.to_warehouse) me.frm.set_value("to_warehouse", r.message["fg_warehouse"]);
 					}
 					me.get_items()
 				}
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.json b/erpnext/stock/doctype/stock_entry/stock_entry.json
index 9107bcd..6598d4e 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.json
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.json
@@ -1,1994 +1,2054 @@
 {
- "allow_copy": 0, 
- "allow_guest_to_view": 0, 
- "allow_import": 1, 
- "allow_rename": 0, 
- "autoname": "naming_series:", 
- "beta": 0, 
- "creation": "2013-04-09 11:43:55", 
- "custom": 0, 
- "docstatus": 0, 
- "doctype": "DocType", 
- "document_type": "Document", 
- "editable_grid": 0, 
- "engine": "InnoDB", 
+ "allow_copy": 0,
+ "allow_guest_to_view": 0,
+ "allow_import": 1,
+ "allow_rename": 0,
+ "autoname": "naming_series:",
+ "beta": 0,
+ "creation": "2013-04-09 11:43:55",
+ "custom": 0,
+ "docstatus": 0,
+ "doctype": "DocType",
+ "document_type": "Document",
+ "editable_grid": 0,
+ "engine": "InnoDB",
  "fields": [
   {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
-   "fieldname": "items_section", 
-   "fieldtype": "Section Break", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "label": "", 
-   "length": 0, 
-   "no_copy": 0, 
-   "oldfieldtype": "Section Break", 
-   "permlevel": 0, 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
+   "allow_bulk_edit": 0,
+   "allow_on_submit": 0,
+   "bold": 0,
+   "collapsible": 0,
+   "columns": 0,
+   "fieldname": "items_section",
+   "fieldtype": "Section Break",
+   "hidden": 0,
+   "ignore_user_permissions": 0,
+   "ignore_xss_filter": 0,
+   "in_filter": 0,
+   "in_global_search": 0,
+   "in_list_view": 0,
+   "in_standard_filter": 0,
+   "label": "",
+   "length": 0,
+   "no_copy": 0,
+   "oldfieldtype": "Section Break",
+   "permlevel": 0,
+   "print_hide": 0,
+   "print_hide_if_no_value": 0,
+   "read_only": 0,
+   "remember_last_selected_value": 0,
+   "report_hide": 0,
+   "reqd": 0,
+   "search_index": 0,
+   "set_only_once": 0,
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 1, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
-   "default": "{purpose}", 
-   "fieldname": "title", 
-   "fieldtype": "Data", 
-   "hidden": 1, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "label": "Title", 
-   "length": 0, 
-   "no_copy": 1, 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 1, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
+   "allow_bulk_edit": 0,
+   "allow_on_submit": 1,
+   "bold": 0,
+   "collapsible": 0,
+   "columns": 0,
+   "default": "{purpose}",
+   "fieldname": "title",
+   "fieldtype": "Data",
+   "hidden": 1,
+   "ignore_user_permissions": 0,
+   "ignore_xss_filter": 0,
+   "in_filter": 0,
+   "in_global_search": 0,
+   "in_list_view": 0,
+   "in_standard_filter": 0,
+   "label": "Title",
+   "length": 0,
+   "no_copy": 1,
+   "permlevel": 0,
+   "precision": "",
+   "print_hide": 1,
+   "print_hide_if_no_value": 0,
+   "read_only": 0,
+   "remember_last_selected_value": 0,
+   "report_hide": 0,
+   "reqd": 0,
+   "search_index": 0,
+   "set_only_once": 0,
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
-   "fieldname": "naming_series", 
-   "fieldtype": "Select", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "label": "Series", 
-   "length": 0, 
-   "no_copy": 1, 
-   "oldfieldname": "naming_series", 
-   "oldfieldtype": "Select", 
-   "options": "STE-", 
-   "permlevel": 0, 
-   "print_hide": 1, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 1, 
-   "search_index": 0, 
-   "set_only_once": 1, 
+   "allow_bulk_edit": 0,
+   "allow_on_submit": 0,
+   "bold": 0,
+   "collapsible": 0,
+   "columns": 0,
+   "fieldname": "naming_series",
+   "fieldtype": "Select",
+   "hidden": 0,
+   "ignore_user_permissions": 0,
+   "ignore_xss_filter": 0,
+   "in_filter": 0,
+   "in_global_search": 0,
+   "in_list_view": 0,
+   "in_standard_filter": 0,
+   "label": "Series",
+   "length": 0,
+   "no_copy": 1,
+   "oldfieldname": "naming_series",
+   "oldfieldtype": "Select",
+   "options": "STE-",
+   "permlevel": 0,
+   "print_hide": 1,
+   "print_hide_if_no_value": 0,
+   "read_only": 0,
+   "remember_last_selected_value": 0,
+   "report_hide": 0,
+   "reqd": 1,
+   "search_index": 0,
+   "set_only_once": 1,
+   "translatable": 0,
    "unique": 0
-  }, 
+  },
   {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 0, 
-   "bold": 1, 
-   "collapsible": 0, 
-   "columns": 0, 
-   "default": "Material Issue", 
-   "fieldname": "purpose", 
-   "fieldtype": "Select", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 1, 
-   "in_standard_filter": 1, 
-   "label": "Purpose", 
-   "length": 0, 
-   "no_copy": 0, 
-   "oldfieldname": "purpose", 
-   "oldfieldtype": "Select", 
-   "options": "Material Issue\nMaterial Receipt\nMaterial Transfer\nMaterial Transfer for Manufacture\nManufacture\nRepack\nSubcontract", 
-   "permlevel": 0, 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
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-   "report": 1, 
-   "role": "Stock User", 
-   "set_user_permissions": 0, 
-   "share": 1, 
-   "submit": 1, 
+   "amend": 1,
+   "apply_user_permissions": 0,
+   "cancel": 1,
+   "create": 1,
+   "delete": 1,
+   "email": 1,
+   "export": 0,
+   "if_owner": 0,
+   "import": 0,
+   "permlevel": 0,
+   "print": 1,
+   "read": 1,
+   "report": 1,
+   "role": "Stock User",
+   "set_user_permissions": 0,
+   "share": 1,
+   "submit": 1,
    "write": 1
-  }, 
+  },
   {
-   "amend": 1, 
-   "apply_user_permissions": 0, 
-   "cancel": 1, 
-   "create": 1, 
-   "delete": 1, 
-   "email": 1, 
-   "export": 0, 
-   "if_owner": 0, 
-   "import": 0, 
-   "permlevel": 0, 
-   "print": 1, 
-   "read": 1, 
-   "report": 1, 
-   "role": "Manufacturing User", 
-   "set_user_permissions": 0, 
-   "share": 1, 
-   "submit": 1, 
+   "amend": 1,
+   "apply_user_permissions": 0,
+   "cancel": 1,
+   "create": 1,
+   "delete": 1,
+   "email": 1,
+   "export": 0,
+   "if_owner": 0,
+   "import": 0,
+   "permlevel": 0,
+   "print": 1,
+   "read": 1,
+   "report": 1,
+   "role": "Manufacturing User",
+   "set_user_permissions": 0,
+   "share": 1,
+   "submit": 1,
    "write": 1
-  }, 
+  },
   {
-   "amend": 1, 
-   "apply_user_permissions": 0, 
-   "cancel": 1, 
-   "create": 1, 
-   "delete": 1, 
-   "email": 1, 
-   "export": 0, 
-   "if_owner": 0, 
-   "import": 0, 
-   "permlevel": 0, 
-   "print": 1, 
-   "read": 1, 
-   "report": 1, 
-   "role": "Manufacturing Manager", 
-   "set_user_permissions": 0, 
-   "share": 1, 
-   "submit": 1, 
+   "amend": 1,
+   "apply_user_permissions": 0,
+   "cancel": 1,
+   "create": 1,
+   "delete": 1,
+   "email": 1,
+   "export": 0,
+   "if_owner": 0,
+   "import": 0,
+   "permlevel": 0,
+   "print": 1,
+   "read": 1,
+   "report": 1,
+   "role": "Manufacturing Manager",
+   "set_user_permissions": 0,
+   "share": 1,
+   "submit": 1,
    "write": 1
-  }, 
+  },
   {
-   "amend": 1, 
-   "apply_user_permissions": 0, 
-   "cancel": 1, 
-   "create": 1, 
-   "delete": 1, 
-   "email": 1, 
-   "export": 0, 
-   "if_owner": 0, 
-   "import": 0, 
-   "permlevel": 0, 
-   "print": 1, 
-   "read": 1, 
-   "report": 1, 
-   "role": "Stock Manager", 
-   "set_user_permissions": 0, 
-   "share": 1, 
-   "submit": 1, 
+   "amend": 1,
+   "apply_user_permissions": 0,
+   "cancel": 1,
+   "create": 1,
+   "delete": 1,
+   "email": 1,
+   "export": 0,
+   "if_owner": 0,
+   "import": 0,
+   "permlevel": 0,
+   "print": 1,
+   "read": 1,
+   "report": 1,
+   "role": "Stock Manager",
+   "set_user_permissions": 0,
+   "share": 1,
+   "submit": 1,
    "write": 1
   }
- ], 
- "quick_entry": 0, 
- "read_only": 0, 
- "read_only_onload": 0, 
- "search_fields": "posting_date, from_warehouse, to_warehouse, purpose, remarks", 
- "show_name_in_global_search": 1, 
- "sort_field": "modified", 
- "sort_order": "DESC", 
- "title_field": "title", 
- "track_changes": 1, 
+ ],
+ "quick_entry": 0,
+ "read_only": 0,
+ "read_only_onload": 0,
+ "search_fields": "posting_date, from_warehouse, to_warehouse, purpose, remarks",
+ "show_name_in_global_search": 1,
+ "sort_field": "modified",
+ "sort_order": "DESC",
+ "title_field": "title",
+ "track_changes": 1,
  "track_seen": 0
 }
\ No newline at end of file
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index 7ef8ab0..233138f 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -43,6 +43,7 @@
 		self.validate_posting_time()
 		self.validate_purpose()
 		self.validate_item()
+		self.validate_qty()
 		self.set_transfer_qty()
 		self.validate_uom_is_integer("uom", "qty")
 		self.validate_uom_is_integer("stock_uom", "transfer_qty")
@@ -80,15 +81,26 @@
 		self.update_cost_in_project()
 
 	def on_cancel(self):
-		self.update_stock_ledger()
-		self.update_work_order()
+
 		if self.purchase_order and self.purpose == "Subcontract":
 			self.update_purchase_order_supplied_items()
+
+		if self.work_order and self.purpose == "Material Consumption for Manufacture":
+			self.validate_work_order_status()
+		else:
+			self.update_work_order()
+
+		self.update_stock_ledger()
 		self.make_gl_entries_on_cancel()
 
+	def validate_work_order_status(self):
+		pro_doc = frappe.get_doc("Work Order", self.work_order)
+		if pro_doc.status == 'Completed':
+			frappe.throw(_("Cannot cancel transaction for Completed Work Order."))
+
 	def validate_purpose(self):
 		valid_purposes = ["Material Issue", "Material Receipt", "Material Transfer", "Material Transfer for Manufacture",
-			"Manufacture", "Repack", "Subcontract"]
+			"Manufacture", "Repack", "Subcontract", "Material Consumption for Manufacture"]
 		if self.purpose not in valid_purposes:
 			frappe.throw(_("Purpose must be one of {0}").format(comma_or(valid_purposes)))
 
@@ -139,11 +151,39 @@
 				frappe.throw(_("Row #{0}: Please specify Serial No for Item {1}").format(item.idx, item.item_code),
 					frappe.MandatoryError)
 
+	def validate_qty(self):
+		manufacture_purpose = ["Manufacture", "Material Consumption for Manufacture"]
+
+		if self.purpose in manufacture_purpose and self.work_order:
+			if not frappe.get_value('Work Order', self.work_order, 'skip_transfer'):
+				item_code = []
+				for item in self.items:
+					if cstr(item.t_warehouse) == '':
+						req_items = frappe.get_all('Work Order Item',
+										filters={'parent': self.work_order, 'item_code': item.item_code}, fields=["item_code"])
+
+						transferred_materials = frappe.db.sql("""
+									select
+										sum(qty) as qty
+									from `tabStock Entry` se,`tabStock Entry Detail` sed
+									where
+										se.name = sed.parent and se.docstatus=1 and
+										(se.purpose='Material Transfer for Manufacture' or se.purpose='Manufacture')
+										and sed.item_code=%s and se.work_order= %s and ifnull(sed.t_warehouse, '') != ''
+								""", (item.item_code, self.work_order), as_dict=1)
+
+						stock_qty = flt(item.qty)
+						trans_qty = flt(transferred_materials[0].qty)
+						if req_items:
+							if stock_qty > trans_qty:
+								item_code.append(item.item_code)
+
 	def validate_warehouse(self):
 		"""perform various (sometimes conditional) validations on warehouse"""
 
-		source_mandatory = ["Material Issue", "Material Transfer", "Subcontract", "Material Transfer for Manufacture"]
-		target_mandatory = ["Material Receipt", "Material Transfer", "Subcontract", "Material Transfer for Manufacture"]
+		source_mandatory = ["Material Issue", "Material Transfer", "Subcontract", "Material Transfer for Manufacture",
+							"Material Consumption for Manufacture"]
+		target_mandatory = ["Material Receipt", "Material Transfer", "Subcontract", "Material Transfer for Manufacture",]
 
 		validate_for_manufacture_repack = any([d.bom_no for d in self.get("items")])
 
@@ -196,10 +236,11 @@
 				frappe.throw(_("Source and target warehouse cannot be same for row {0}").format(d.idx))
 
 	def validate_work_order(self):
-		if self.purpose in ("Manufacture", "Material Transfer for Manufacture"):
+		if self.purpose in ("Manufacture", "Material Transfer for Manufacture", "Material Consumption for Manufacture"):
 			# check if work order is entered
 
-			if self.purpose=="Manufacture" and self.work_order:
+			if (self.purpose=="Manufacture" or self.purpose=="Material Consumption for Manufacture") \
+					and self.work_order:
 				if not self.fg_completed_qty:
 					frappe.throw(_("For Quantity (Manufactured Qty) is mandatory"))
 				self.check_if_operations_completed()
@@ -234,8 +275,7 @@
 				where parent in (%s)
 					and item_code = %s
 					and ifnull(s_warehouse,'')='' """ % (", ".join(["%s" * len(other_ste)]), "%s"), args)[0][0]
-
-			if fg_qty_already_entered >= qty:
+			if fg_qty_already_entered and fg_qty_already_entered >= qty:
 				frappe.throw(_("Stock Entries already created for Work Order ")
 					+ self.work_order + ":" + ", ".join(other_ste), DuplicateEntryForWorkOrderError)
 
@@ -590,8 +630,10 @@
 		self.set_work_order_details()
 
 		if self.bom_no:
+
 			if self.purpose in ["Material Issue", "Material Transfer", "Manufacture", "Repack",
-					"Subcontract", "Material Transfer for Manufacture"]:
+					"Subcontract", "Material Transfer for Manufacture", "Material Consumption for Manufacture"]:
+
 				if self.work_order and self.purpose == "Material Transfer for Manufacture":
 					item_dict = self.get_pending_raw_materials()
 					if self.to_warehouse and self.pro_doc:
@@ -599,10 +641,15 @@
 							item["to_warehouse"] = self.pro_doc.wip_warehouse
 					self.add_to_stock_entry_detail(item_dict)
 
-				elif self.work_order and self.purpose == "Manufacture" and \
+				elif self.work_order and (self.purpose == "Manufacture" or self.purpose == "Material Consumption for Manufacture") and \
 					frappe.db.get_single_value("Manufacturing Settings", "backflush_raw_materials_based_on")== "Material Transferred for Manufacture":
 					self.get_transfered_raw_materials()
 
+				elif self.work_order and (self.purpose == "Manufacture" or self.purpose == "Material Consumption for Manufacture") and \
+					frappe.db.get_single_value("Manufacturing Settings", "backflush_raw_materials_based_on")== "BOM" and \
+					frappe.db.get_single_value("Manufacturing Settings", "material_consumption")== 1:
+					self.get_unconsumed_raw_materials()
+
 				else:
 					if not self.fg_completed_qty:
 						frappe.throw(_("Manufacturing Quantity is mandatory"))
@@ -613,7 +660,7 @@
 					if self.purchase_order and self.purpose == "Subcontract":
 						#Get PO Supplied Items Details
 						item_wh = frappe._dict(frappe.db.sql("""
-							select rm_item_code, reserve_warehouse 
+							select rm_item_code, reserve_warehouse
 							from `tabPurchase Order` po, `tabPurchase Order Item Supplied` poitemsup
 							where po.name = poitemsup.parent
 								and po.name = %s""",self.purchase_order))
@@ -726,6 +773,45 @@
 			item.from_warehouse = ""
 		return item_dict
 
+	def get_unconsumed_raw_materials(self):
+		wo = frappe.get_doc("Work Order", self.work_order)
+		wo_items = frappe.get_all('Work Order Item',
+			filters={'parent': self.work_order},
+			fields=["item_code", "required_qty", "consumed_qty"]
+			)
+
+		for item in wo_items:
+			qty = item.required_qty
+			item_account_details = frappe.db.get_value("Item", item.item_code, ["item_name",
+				"description", "stock_uom", "expense_account", "buying_cost_center", "name", "default_warehouse"], as_dict=1)
+			# Take into account consumption if there are any.
+			if self.purpose == 'Manufacture':
+				req_qty_each = flt(item.required_qty / wo.qty)
+				if (flt(item.consumed_qty) != 0):
+					remaining_qty = flt(item.consumed_qty) - (flt(wo.produced_qty) * req_qty_each)
+					exhaust_qty = req_qty_each * wo.produced_qty
+					if remaining_qty > exhaust_qty :
+						if (remaining_qty/(req_qty_each * flt(self.fg_completed_qty))) >= 1:
+							qty =0
+						else:
+							qty = (req_qty_each * flt(self.fg_completed_qty)) - remaining_qty
+				else:
+					qty = req_qty_each * flt(self.fg_completed_qty)
+
+			if qty > 0:
+				self.add_to_stock_entry_detail({
+					item.item_code: {
+						"from_warehouse": wo.wip_warehouse,
+						"to_warehouse": "",
+						"qty": qty,
+						"item_name": item.item_name,
+						"description": item.description,
+						"stock_uom": item_account_details.stock_uom,
+						"expense_account": item_account_details.expense_account,
+						"cost_center": item_account_details.buying_cost_center,
+					}
+				})
+
 	def get_transfered_raw_materials(self):
 		transferred_materials = frappe.db.sql("""
 			select
@@ -744,7 +830,8 @@
 			from
 				`tabStock Entry` se, `tabStock Entry Detail` sed
 			where
-				se.name = sed.parent and se.docstatus=1 and se.purpose='Manufacture'
+				se.name = sed.parent and se.docstatus=1
+				and (se.purpose='Manufacture' or se.purpose='Material Consumption for Manufacture')
 				and se.work_order= %s and ifnull(sed.s_warehouse, '') != ''
 			group by sed.item_code, sed.s_warehouse
 		""", self.work_order, as_dict=1)
@@ -755,20 +842,47 @@
 
 		po_qty = frappe.db.sql("""select qty, produced_qty, material_transferred_for_manufacturing from
 			`tabWork Order` where name=%s""", self.work_order, as_dict=1)[0]
+
 		manufacturing_qty = flt(po_qty.qty)
 		produced_qty = flt(po_qty.produced_qty)
 		trans_qty = flt(po_qty.material_transferred_for_manufacturing)
 
 		for item in transferred_materials:
 			qty= item.qty
+			req_items = frappe.get_all('Work Order Item',
+				filters={'parent': self.work_order, 'item_code': item.item_code},
+				fields=["required_qty", "consumed_qty"]
+				)
+			req_qty = flt(req_items[0].required_qty)
+			req_qty_each = flt(req_qty / manufacturing_qty)
+			consumed_qty = flt(req_items[0].consumed_qty)
 
-			if trans_qty and manufacturing_qty > (produced_qty + flt(self.fg_completed_qty)):
-				qty = (qty/trans_qty) * flt(self.fg_completed_qty)
+			if trans_qty and manufacturing_qty >= (produced_qty + flt(self.fg_completed_qty)):
+				if qty >= req_qty:
+					qty = (req_qty/trans_qty) * flt(self.fg_completed_qty)
+				else:
+					qty = qty - consumed_qty
+
+				if self.purpose == 'Manufacture':
+					# If Material Consumption is booked, must pull only remaining components to finish product
+					if consumed_qty != 0:
+						remaining_qty = consumed_qty - (produced_qty * req_qty_each)
+						exhaust_qty = req_qty_each * produced_qty
+						if remaining_qty > exhaust_qty :
+							if (remaining_qty/(req_qty_each * flt(self.fg_completed_qty))) >= 1:
+								qty =0
+							else:
+								qty = (req_qty_each * flt(self.fg_completed_qty)) - remaining_qty
+					else:
+						qty = req_qty_each * flt(self.fg_completed_qty)
+
 
 			elif backflushed_materials.get(item.item_code):
 				for d in backflushed_materials.get(item.item_code):
 					if d.get(item.warehouse):
-						qty-= d.get(item.warehouse)
+						if (qty > req_qty):
+							qty = req_qty
+							qty-= d.get(item.warehouse)
 
 			if qty > 0:
 				self.add_to_stock_entry_detail({
@@ -841,7 +955,7 @@
 
 		for d in item_dict:
 			stock_uom = item_dict[d].get("stock_uom") or frappe.db.get_value("Item", d, "stock_uom")
-			
+
 			se_child = self.append('items')
 			se_child.s_warehouse = item_dict[d].get("from_warehouse")
 			se_child.t_warehouse = item_dict[d].get("to_warehouse")
@@ -894,7 +1008,7 @@
 	def update_purchase_order_supplied_items(self):
 		#Get PO Supplied Items Details
 		item_wh = frappe._dict(frappe.db.sql("""
-			select rm_item_code, reserve_warehouse 
+			select rm_item_code, reserve_warehouse
 			from `tabPurchase Order` po, `tabPurchase Order Item Supplied` poitemsup
 			where po.name = poitemsup.parent
 			and po.name = %s""", self.purchase_order))
@@ -905,7 +1019,7 @@
 			reserve_warehouse = item_wh.get(item_code)
 			stock_bin = get_bin(item_code, reserve_warehouse)
 			stock_bin.update_reserved_qty_for_sub_contracting()
-	
+
 @frappe.whitelist()
 def move_sample_to_retention_warehouse(company, items):
 	if isinstance(items, string_types):
@@ -1075,4 +1189,4 @@
 		frappe.msgprint(_("Maximum Samples - {0} can be retained for Batch {1} and Item {2}.").
 			format(max_retain_qty, batch_no, item_code), alert=True)
 		sample_quantity = qty_diff
-	return sample_quantity
\ No newline at end of file
+	return sample_quantity
diff --git a/erpnext/stock/doctype/stock_entry/test_stock_entry.py b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
index c9ab657..e253736 100644
--- a/erpnext/stock/doctype/stock_entry/test_stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
@@ -575,7 +575,8 @@
 			"bom_no": bom_no,
 			"qty": 1.0,
 			"stock_uom": "_Test UOM",
-			"wip_warehouse": "_Test Warehouse - _TC"
+			"wip_warehouse": "_Test Warehouse - _TC",
+			"skip_transfer": 1
 		})
 		work_order.insert()
 		work_order.submit()
@@ -680,6 +681,34 @@
 		repack.insert()
 		self.assertRaises(frappe.ValidationError, repack.submit)
 
+	def test_material_consumption(self):
+		from erpnext.manufacturing.doctype.work_order.work_order \
+			import make_stock_entry as _make_stock_entry
+		bom_no = frappe.db.get_value("BOM", {"item": "_Test FG Item 2",
+			"is_default": 1, "docstatus": 1}, ["name", "operating_cost"])
+
+		work_order = frappe.new_doc("Work Order")
+		work_order.update({
+			"company": "_Test Company",
+			"fg_warehouse": "_Test Warehouse 1 - _TC",
+			"production_item": "_Test FG Item 2",
+			"bom_no": bom_no,
+			"qty": 4.0,
+			"stock_uom": "_Test UOM",
+			"wip_warehouse": "_Test Warehouse - _TC",
+			"additional_operating_cost": 1000
+		})
+		work_order.insert()
+		work_order.submit()
+
+		make_stock_entry(item_code="_Test Serialized Item With Series", target="_Test Warehouse - _TC", qty=50, basic_rate=100)
+		make_stock_entry(item_code="_Test Item 2", target="_Test Warehouse - _TC", qty=50, basic_rate=20)
+
+		stock_entry = frappe.get_doc(_make_stock_entry(work_order.name, "Material Consumption for Manufacture", 2))
+		self.assertEqual(stock_entry.get("items")[0].qty, 10)
+		self.assertEqual(stock_entry.get("items")[1].qty, 6)
+
+
 def make_serialized_item(item_code=None, serial_no=None, target_warehouse=None):
 	se = frappe.copy_doc(test_records[0])
 	se.get("items")[0].item_code = item_code or "_Test Serialized Item With Series"