diff --git a/erpnext/accounts/doctype/pricing_rule/test_records.json b/erpnext/accounts/doctype/pricing_rule/test_records.json
deleted file mode 100644
index 706d54c..0000000
--- a/erpnext/accounts/doctype/pricing_rule/test_records.json
+++ /dev/null
@@ -1,6 +0,0 @@
-[
-	{
-		"doctype": "Pricing Rule",
-		"name": "_Test Pricing Rule 1"
-	}
-]
diff --git a/erpnext/manufacturing/doctype/bom/bom.py b/erpnext/manufacturing/doctype/bom/bom.py
index 8328fc7..7112678 100644
--- a/erpnext/manufacturing/doctype/bom/bom.py
+++ b/erpnext/manufacturing/doctype/bom/bom.py
@@ -197,27 +197,14 @@
 			if self.with_operations and cstr(m.operation_no) not in self.op:
 				frappe.throw(_("Operation {0} not present in Operations Table").format(m.operation_no))
 
-			if m.bom:
-				self.validate_bom_no(m.item_code, m.bom_no, m.idx)
+			if m.bom_no:
+				validate_bom_no(m.item_code, m.bom_no)
 
 			if flt(m.qty) <= 0:
 				frappe.throw(_("Quantity required for Item {0} in row {1}").format(m.item_code, m.idx))
 
 			self.check_if_item_repeated(m.item_code, m.operation_no, check_list)
 
-	def validate_bom_no(self, item, bom_no, idx):
-		"""Validate BOM No of sub-contracted items"""
-		bom = frappe.get_doc("BOM", bom_no)
-		if not bom.is_active:
-			frappe.throw(_("BOM {0} must be active").format(bom_no))
-		if not bom.docstatus!=1:
-			frappe.throw(_("BOM {0} must be submitted").format(bom_no))
-
-		bom = frappe.db.sql("""select name from `tabBOM` where name = %s and item = %s
-			and is_active=1 and docstatus=1""",
-			(bom_no, item), as_dict =1)
-		if not bom:
-			frappe.throw(_("BOM {0} for Item {1} in row {2} is inactive or not submitted").format(bom_no, item, idx))
 
 	def check_if_item_repeated(self, item, op, check_list):
 		if [cstr(item), cstr(op)] in check_list:
@@ -425,3 +412,16 @@
 	items = get_bom_items_as_dict(bom, qty, fetch_exploded).values()
 	items.sort(lambda a, b: a.item_code > b.item_code and 1 or -1)
 	return items
+
+def validate_bom_no(item, bom_no):
+	"""Validate BOM No of sub-contracted items"""
+	bom = frappe.get_doc("BOM", bom_no)
+	if not bom.is_active:
+		frappe.throw(_("BOM {0} must be active").format(bom_no))
+	if not bom.docstatus!=1:
+		if not getattr(frappe.flags, "in_test", False):
+			frappe.throw(_("BOM {0} must be submitted").format(bom_no))
+	if item and not (bom.item == item or \
+		bom.item == frappe.db.get_value("Item", item, "variant_of")):
+		frappe.throw(_("BOM {0} does not belong to Item {1}").format(bom_no, item))
+
diff --git a/erpnext/manufacturing/doctype/bom/test_records.json b/erpnext/manufacturing/doctype/bom/test_records.json
index 17c28d5..26aa6d3 100644
--- a/erpnext/manufacturing/doctype/bom/test_records.json
+++ b/erpnext/manufacturing/doctype/bom/test_records.json
@@ -2,98 +2,128 @@
  {
   "bom_materials": [
    {
-    "amount": 5000.0, 
-    "doctype": "BOM Item", 
-    "item_code": "_Test Serialized Item With Series", 
-    "parentfield": "bom_materials", 
-    "qty": 1.0, 
-    "rate": 5000.0, 
+    "amount": 5000.0,
+    "doctype": "BOM Item",
+    "item_code": "_Test Serialized Item With Series",
+    "parentfield": "bom_materials",
+    "qty": 1.0,
+    "rate": 5000.0,
     "stock_uom": "_Test UOM"
-   }, 
+   },
    {
-    "amount": 2000.0, 
-    "doctype": "BOM Item", 
-    "item_code": "_Test Item 2", 
-    "parentfield": "bom_materials", 
-    "qty": 2.0, 
-    "rate": 1000.0, 
+    "amount": 2000.0,
+    "doctype": "BOM Item",
+    "item_code": "_Test Item 2",
+    "parentfield": "bom_materials",
+    "qty": 2.0,
+    "rate": 1000.0,
     "stock_uom": "_Test UOM"
    }
-  ], 
-  "docstatus": 1, 
-  "doctype": "BOM", 
-  "is_active": 1, 
-  "is_default": 1, 
-  "item": "_Test Item Home Desktop Manufactured", 
+  ],
+  "docstatus": 1,
+  "doctype": "BOM",
+  "is_active": 1,
+  "is_default": 1,
+  "item": "_Test Item Home Desktop Manufactured",
   "quantity": 1.0
- }, 
+ },
  {
   "bom_materials": [
    {
-    "amount": 5000.0, 
-    "doctype": "BOM Item", 
-    "item_code": "_Test Item", 
-    "parentfield": "bom_materials", 
-    "qty": 1.0, 
-    "rate": 5000.0, 
+    "amount": 5000.0,
+    "doctype": "BOM Item",
+    "item_code": "_Test Item",
+    "parentfield": "bom_materials",
+    "qty": 1.0,
+    "rate": 5000.0,
     "stock_uom": "_Test UOM"
-   }, 
+   },
    {
-    "amount": 2000.0, 
-    "doctype": "BOM Item", 
-    "item_code": "_Test Item Home Desktop 100", 
-    "parentfield": "bom_materials", 
-    "qty": 2.0, 
-    "rate": 1000.0, 
+    "amount": 2000.0,
+    "doctype": "BOM Item",
+    "item_code": "_Test Item Home Desktop 100",
+    "parentfield": "bom_materials",
+    "qty": 2.0,
+    "rate": 1000.0,
     "stock_uom": "_Test UOM"
    }
-  ], 
-  "docstatus": 1, 
-  "doctype": "BOM", 
-  "is_active": 1, 
-  "is_default": 1, 
-  "item": "_Test FG Item", 
+  ],
+  "docstatus": 1,
+  "doctype": "BOM",
+  "is_active": 1,
+  "is_default": 1,
+  "item": "_Test FG Item",
   "quantity": 1.0
  },
  {
   "bom_operations": [
    {
-    "operation_no": "1", 
-    "opn_description": "_Test", 
-    "workstation": "_Test Workstation 1", 
+    "operation_no": "1",
+    "opn_description": "_Test",
+    "workstation": "_Test Workstation 1",
     "time_in_min": 60,
     "operating_cost": 100
    }
-   ], 
+   ],
   "bom_materials": [
    {
     "operation_no": 1,
-    "amount": 5000.0, 
-    "doctype": "BOM Item", 
-    "item_code": "_Test Item", 
-    "parentfield": "bom_materials", 
-    "qty": 1.0, 
-    "rate": 5000.0, 
+    "amount": 5000.0,
+    "doctype": "BOM Item",
+    "item_code": "_Test Item",
+    "parentfield": "bom_materials",
+    "qty": 1.0,
+    "rate": 5000.0,
     "stock_uom": "_Test UOM"
-   }, 
+   },
    {
     "operation_no": 1,
-    "amount": 2000.0, 
-    "bom_no": "BOM/_Test Item Home Desktop Manufactured/001", 
-    "doctype": "BOM Item", 
-    "item_code": "_Test Item Home Desktop Manufactured", 
-    "parentfield": "bom_materials", 
-    "qty": 2.0, 
-    "rate": 1000.0, 
+    "amount": 2000.0,
+    "bom_no": "BOM/_Test Item Home Desktop Manufactured/001",
+    "doctype": "BOM Item",
+    "item_code": "_Test Item Home Desktop Manufactured",
+    "parentfield": "bom_materials",
+    "qty": 2.0,
+    "rate": 1000.0,
     "stock_uom": "_Test UOM"
    }
-  ], 
-  "docstatus": 1, 
-  "doctype": "BOM", 
-  "is_active": 1, 
-  "is_default": 1, 
-  "item": "_Test FG Item 2", 
+  ],
+  "docstatus": 1,
+  "doctype": "BOM",
+  "is_active": 1,
+  "is_default": 1,
+  "item": "_Test FG Item 2",
+  "quantity": 1.0,
+  "with_operations": 1
+ },
+ {
+  "bom_operations": [
+   {
+    "operation_no": "1",
+    "opn_description": "_Test",
+    "workstation": "_Test Workstation 1",
+    "time_in_min": 60,
+    "operating_cost": 140
+   }
+   ],
+  "bom_materials": [
+   {
+    "operation_no": 1,
+    "amount": 5000.0,
+    "doctype": "BOM Item",
+    "item_code": "_Test Item",
+    "parentfield": "bom_materials",
+    "qty": 2.0,
+    "rate": 3000.0,
+    "stock_uom": "_Test UOM"
+   }
+  ],
+  "docstatus": 1,
+  "doctype": "BOM",
+  "is_active": 1,
+  "is_default": 1,
+  "item": "_Test Variant Item",
   "quantity": 1.0,
   "with_operations": 1
  }
-]
\ No newline at end of file
+]
diff --git a/erpnext/manufacturing/doctype/production_order/production_order.py b/erpnext/manufacturing/doctype/production_order/production_order.py
index 309f47c..f6af357 100644
--- a/erpnext/manufacturing/doctype/production_order/production_order.py
+++ b/erpnext/manufacturing/doctype/production_order/production_order.py
@@ -7,12 +7,12 @@
 from frappe.utils import flt, nowdate
 from frappe import _
 from frappe.model.document import Document
+from erpnext.manufacturing.doctype.bom.bom import validate_bom_no
 
 class OverProductionError(frappe.ValidationError): pass
 class StockOverProductionError(frappe.ValidationError): pass
 
 class ProductionOrder(Document):
-
 	def validate(self):
 		if self.docstatus == 0:
 			self.status = "Draft"
@@ -21,7 +21,9 @@
 		validate_status(self.status, ["Draft", "Submitted", "Stopped",
 			"In Process", "Completed", "Cancelled"])
 
-		self.validate_bom_no()
+		if self.bom_no:
+			validate_bom_no(self.production_item, self.bom_no)
+
 		self.validate_sales_order()
 		self.validate_warehouse()
 		self.set_fixed_cost()
@@ -29,14 +31,6 @@
 		from erpnext.utilities.transaction_base import validate_uom_is_integer
 		validate_uom_is_integer(self, "stock_uom", ["qty", "produced_qty"])
 
-	def validate_bom_no(self):
-		if self.bom_no:
-			bom = frappe.db.sql("""select name from `tabBOM` where name=%s and docstatus=1
-				and is_active=1 and item=%s"""
-				, (self.bom_no, self.production_item), as_dict =1)
-			if not bom:
-				frappe.throw(_("BOM {0} is not active or not submitted").format(self.bom_no))
-
 	def validate_sales_order(self):
 		if self.sales_order:
 			so = frappe.db.sql("""select name, delivery_date from `tabSales Order`
diff --git a/erpnext/stock/doctype/item/test_records.json b/erpnext/stock/doctype/item/test_records.json
index 4085d98..01c4e4f 100644
--- a/erpnext/stock/doctype/item/test_records.json
+++ b/erpnext/stock/doctype/item/test_records.json
@@ -264,6 +264,7 @@
   "is_sales_item": "Yes",
   "is_service_item": "No",
   "is_stock_item": "Yes",
+  "is_manufactured_item": "Yes",
   "is_sub_contracted_item": "Yes",
   "item_code": "_Test Variant Item",
   "item_group": "_Test Item Group Desktops",
diff --git a/erpnext/stock/doctype/stock_entry/stock_entry.py b/erpnext/stock/doctype/stock_entry/stock_entry.py
index a2d8c26..028fff9 100644
--- a/erpnext/stock/doctype/stock_entry/stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/stock_entry.py
@@ -12,6 +12,7 @@
 from erpnext.stock.stock_ledger import get_previous_sle
 from erpnext.controllers.queries import get_match_cond
 from erpnext.stock.get_item_details import get_available_qty, get_default_cost_center
+from erpnext.manufacturing.doctype.bom.bom import validate_bom_no
 
 class NotUpdateStockError(frappe.ValidationError): pass
 class StockOverReturnError(frappe.ValidationError): pass
@@ -293,10 +294,8 @@
 
 	def validate_bom(self):
 		for d in self.get('mtn_details'):
-			if d.bom_no and not frappe.db.sql("""select name from `tabBOM`
-					where item = %s and name = %s and docstatus = 1 and is_active = 1""",
-					(d.item_code, d.bom_no)):
-				frappe.throw(_("BOM {0} is not submitted or inactive BOM for Item {1}").format(d.bom_no, d.item_code))
+			if d.bom_no:
+				validate_bom_no(d.item_code, d.bom_no)
 
 	def validate_finished_goods(self):
 		"""validation: finished good quantity should be same as manufacturing quantity"""
@@ -497,13 +496,20 @@
 				# add raw materials to Stock Entry Detail table
 				self.add_to_stock_entry_detail(item_dict)
 
-			# add finished good item to Stock Entry Detail table -- along with bom_no
-			if self.production_order and self.purpose == "Manufacture":
-				item = frappe.db.get_value("Item", pro_obj.production_item, ["item_name",
-					"description", "stock_uom", "expense_account", "buying_cost_center"], as_dict=1)
+			if self.bom_no:
+				if self.production_order:
+					item_code = pro_obj.production_item
+					to_warehouse = pro_obj.fg_warehouse
+				else:
+					item_code = frappe.db.get_value("BOM", self.bom_no, "item")
+					to_warehouse = ""
+
+				item = frappe.db.get_value("Item", item_code, ["item_name",
+					"description", "stock_uom", "expense_account", "buying_cost_center", "name"], as_dict=1)
+
 				self.add_to_stock_entry_detail({
-					cstr(pro_obj.production_item): {
-						"to_warehouse": pro_obj.fg_warehouse,
+					item.name: {
+						"to_warehouse": to_warehouse,
 						"from_warehouse": "",
 						"qty": self.fg_completed_qty,
 						"item_name": item.item_name,
@@ -512,27 +518,7 @@
 						"expense_account": item.expense_account,
 						"cost_center": item.buying_cost_center,
 					}
-				}, bom_no=pro_obj.bom_no)
-
-			elif self.purpose in ["Material Receipt", "Repack"]:
-				if self.purpose=="Material Receipt":
-					self.from_warehouse = ""
-
-				item = frappe.db.sql("""select name, item_name, description,
-					stock_uom, expense_account, buying_cost_center from `tabItem`
-					where name=(select item from tabBOM where name=%s)""",
-					self.bom_no, as_dict=1)
-				self.add_to_stock_entry_detail({
-					item[0]["name"] : {
-						"qty": self.fg_completed_qty,
-						"item_name": item[0].item_name,
-						"description": item[0]["description"],
-						"stock_uom": item[0]["stock_uom"],
-						"from_warehouse": "",
-						"expense_account": item[0].expense_account,
-						"cost_center": item[0].buying_cost_center,
-					}
-				}, bom_no=self.bom_no)
+				}, bom_no = self.bom_no)
 
 		self.get_stock_and_rate()
 
diff --git a/erpnext/stock/doctype/stock_entry/test_stock_entry.py b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
index c2dcdc1..03eb9fe 100644
--- a/erpnext/stock/doctype/stock_entry/test_stock_entry.py
+++ b/erpnext/stock/doctype/stock_entry/test_stock_entry.py
@@ -858,6 +858,29 @@
 		fg_rate = [d.amount for d in stock_entry.get("mtn_details") if d.item_code=="_Test Item"][0]
 		self.assertEqual(fg_rate, 100.00)
 
+	def test_variant_production_order(self):
+		bom_no = frappe.db.get_value("BOM", {"item": "_Test Variant Item",
+			"is_default": 1, "docstatus": 1})
+
+		production_order = frappe.new_doc("Production Order")
+		production_order.update({
+			"company": "_Test Company",
+			"fg_warehouse": "_Test Warehouse 1 - _TC",
+			"production_item": "_Test Variant Item-S",
+			"bom_no": bom_no,
+			"qty": 1.0,
+			"stock_uom": "Nos",
+			"wip_warehouse": "_Test Warehouse - _TC"
+		})
+		production_order.insert()
+		production_order.submit()
+
+		from erpnext.manufacturing.doctype.production_order.production_order import make_stock_entry
+
+		stock_entry = frappe.get_doc(make_stock_entry(production_order.name, "Manufacture", 1))
+		stock_entry.insert()
+		self.assertTrue("_Test Variant Item-S" in [d.item_code for d in stock_entry.mtn_details])
+
 def make_serialized_item(item_code=None, serial_no=None, target_warehouse=None):
 	se = frappe.copy_doc(test_records[0])
 	se.get("mtn_details")[0].item_code = item_code or "_Test Serialized Item With Series"