diff --git a/erpnext/buying/doctype/purchase_order/purchase_order.py b/erpnext/buying/doctype/purchase_order/purchase_order.py
index fcdc87d..4efbb27 100644
--- a/erpnext/buying/doctype/purchase_order/purchase_order.py
+++ b/erpnext/buying/doctype/purchase_order/purchase_order.py
@@ -215,6 +215,10 @@
 
 		self.validate_fg_item_for_subcontracting()
 		self.set_received_qty_for_drop_ship_items()
+
+		if not self.advance_payment_status:
+			self.advance_payment_status = "Not Initiated"
+
 		validate_inter_company_party(
 			self.doctype, self.supplier, self.company, self.inter_company_order_reference
 		)
@@ -470,9 +474,6 @@
 		self.validate_budget()
 		self.update_reserved_qty_for_subcontract()
 
-		if not self.advance_payment_status:
-			self.advance_payment_status = "Not Initiated"
-
 		frappe.get_doc("Authorization Control").validate_approving_authority(
 			self.doctype, self.company, self.base_grand_total
 		)