diff --git a/erpnext/stock/doctype/putaway_rule/putaway_rule.js b/erpnext/stock/doctype/putaway_rule/putaway_rule.js
index 00a84b0..e056920 100644
--- a/erpnext/stock/doctype/putaway_rule/putaway_rule.js
+++ b/erpnext/stock/doctype/putaway_rule/putaway_rule.js
@@ -14,7 +14,7 @@
 	},
 
 	uom: function(frm) {
-		if(frm.doc.item_code && frm.doc.uom) {
+		if (frm.doc.item_code && frm.doc.uom) {
 			return frm.call({
 				method: "erpnext.stock.get_item_details.get_conversion_factor",
 				args: {
@@ -22,7 +22,7 @@
 					uom: frm.doc.uom
 				},
 				callback: function(r) {
-					if(!r.exc) {
+					if (!r.exc) {
 						let stock_capacity = flt(frm.doc.capacity) * flt(r.message.conversion_factor);
 						frm.set_value('conversion_factor', r.message.conversion_factor);
 						frm.set_value('stock_capacity', stock_capacity);
diff --git a/erpnext/stock/doctype/putaway_rule/putaway_rule.json b/erpnext/stock/doctype/putaway_rule/putaway_rule.json
index d5ae68f..e5b6b2b 100644
--- a/erpnext/stock/doctype/putaway_rule/putaway_rule.json
+++ b/erpnext/stock/doctype/putaway_rule/putaway_rule.json
@@ -107,7 +107,7 @@
  ],
  "index_web_pages_for_search": 1,
  "links": [],
- "modified": "2020-11-23 16:53:48.387054",
+ "modified": "2020-11-23 19:25:50.948068",
  "modified_by": "Administrator",
  "module": "Stock",
  "name": "Putaway Rule",
@@ -121,7 +121,30 @@
    "print": 1,
    "read": 1,
    "report": 1,
-   "role": "System Manager",
+   "role": "Stock Manager",
+   "share": 1,
+   "write": 1
+  },
+  {
+   "create": 1,
+   "delete": 1,
+   "email": 1,
+   "export": 1,
+   "print": 1,
+   "read": 1,
+   "report": 1,
+   "role": "Stock User",
+   "share": 1,
+   "write": 1
+  },
+  {
+   "email": 1,
+   "export": 1,
+   "permlevel": 1,
+   "print": 1,
+   "read": 1,
+   "report": 1,
+   "role": "Stock Manager",
    "share": 1,
    "write": 1
   }
diff --git a/erpnext/stock/doctype/putaway_rule/putaway_rule.py b/erpnext/stock/doctype/putaway_rule/putaway_rule.py
index cc58def..73534aa 100644
--- a/erpnext/stock/doctype/putaway_rule/putaway_rule.py
+++ b/erpnext/stock/doctype/putaway_rule/putaway_rule.py
@@ -17,6 +17,7 @@
 		self.validate_warehouse_and_company()
 		self.validate_capacity()
 		self.validate_priority()
+		self.set_stock_capacity()
 
 	def validate_duplicate_rule(self):
 		existing_rule = frappe.db.exists("Putaway Rule", {"item_code": self.item_code, "warehouse": self.warehouse})
@@ -45,10 +46,13 @@
 		if not self.capacity:
 			frappe.throw(_("Capacity must be greater than 0"), title=_("Invalid"))
 
+	def set_stock_capacity(self):
+		self.stock_capacity = (flt(self.conversion_factor) or 1) * flt(self.capacity)
+
 @frappe.whitelist()
 def get_ordered_putaway_rules(item_code, company):
 	"""Returns an ordered list of putaway rules to apply on an item."""
-	rules = frappe.get_all("Putaway Rule", fields=["name", "stock_capacity", "priority", "warehouse"],
+	rules = frappe.get_all("Putaway Rule", fields=["name", "item_code", "stock_capacity", "priority", "warehouse"],
 		filters={"item_code": item_code, "company": company, "disable": 0},
 		order_by="priority asc, capacity desc")
 
@@ -86,6 +90,7 @@
 		new_updated_table_row.name = ''
 		new_updated_table_row.idx = 1 if not updated_table else flt(updated_table[-1].idx) + 1
 		new_updated_table_row.qty = to_allocate
+		new_updated_table_row.stock_qty = flt(to_allocate) * flt(new_updated_table_row.conversion_factor)
 		new_updated_table_row.warehouse = warehouse
 		updated_table.append(new_updated_table_row)
 
diff --git a/erpnext/stock/doctype/putaway_rule/test_putaway_rule.py b/erpnext/stock/doctype/putaway_rule/test_putaway_rule.py
index e262217..7b81784 100644
--- a/erpnext/stock/doctype/putaway_rule/test_putaway_rule.py
+++ b/erpnext/stock/doctype/putaway_rule/test_putaway_rule.py
@@ -2,9 +2,260 @@
 # Copyright (c) 2020, Frappe Technologies Pvt. Ltd. and Contributors
 # See license.txt
 from __future__ import unicode_literals
-
-# import frappe
+import frappe
 import unittest
+from frappe.utils import add_days, nowdate
+from erpnext.stock.doctype.item.test_item import make_item
+from erpnext.stock.get_item_details import get_conversion_factor
+from erpnext.stock.doctype.warehouse.test_warehouse import create_warehouse
+from erpnext.stock.doctype.stock_entry.test_stock_entry import make_stock_entry
+from erpnext.buying.doctype.purchase_order.purchase_order import make_purchase_receipt
+from erpnext.buying.doctype.purchase_order.test_purchase_order import create_purchase_order
 
 class TestPutawayRule(unittest.TestCase):
-	pass
+	def setUp(self):
+		if not frappe.db.exists("Item", "_Rice"):
+			make_item("_Rice", {
+				'is_stock_item': 1,
+				'has_batch_no' : 1,
+				'create_new_batch': 1,
+				'stock_uom': 'Kg'
+			})
+
+		if not frappe.db.exists("Warehouse", {"warehouse_name": "Rack 1"}):
+			create_warehouse("Rack 1")
+		if not frappe.db.exists("Warehouse", {"warehouse_name": "Rack 2"}):
+			create_warehouse("Rack 2")
+
+		if not frappe.db.exists("UOM", "Bag"):
+			new_uom = frappe.new_doc("UOM")
+			new_uom.uom_name = "Bag"
+			new_uom.save()
+
+	def test_putaway_rules_priority(self):
+		"""Test if rule is applied by priority, irrespective of free space."""
+		warehouse_1 = frappe.db.get_value("Warehouse", {"warehouse_name": "Rack 1"})
+		warehouse_2 = frappe.db.get_value("Warehouse", {"warehouse_name": "Rack 2"})
+
+		rule_1 = create_putaway_rule(item_code="_Rice", warehouse=warehouse_1, capacity=200,
+			uom="Kg")
+		rule_2 = create_putaway_rule(item_code="_Rice", warehouse=warehouse_2, capacity=300,
+			uom="Kg", priority=2)
+
+		po = create_purchase_order(item_code="_Rice", qty=300)
+		self.assertEqual(len(po.items), 1)
+
+		pr = make_purchase_receipt(po.name)
+		self.assertEqual(len(pr.items), 2)
+		self.assertEqual(pr.items[0].qty, 200)
+		self.assertEqual(pr.items[0].warehouse, warehouse_1)
+		self.assertEqual(pr.items[1].qty, 100)
+		self.assertEqual(pr.items[1].warehouse, warehouse_2)
+
+		po.cancel()
+		rule_1.delete()
+		rule_2.delete()
+
+	def test_putaway_rules_with_same_priority(self):
+		"""Test if rule with more free space is applied,
+		among two rules with same priority and capacity."""
+		warehouse_1 = frappe.db.get_value("Warehouse", {"warehouse_name": "Rack 1"})
+		warehouse_2 = frappe.db.get_value("Warehouse", {"warehouse_name": "Rack 2"})
+
+		rule_1 = create_putaway_rule(item_code="_Rice", warehouse=warehouse_1, capacity=500,
+			uom="Kg")
+		rule_2 = create_putaway_rule(item_code="_Rice", warehouse=warehouse_2, capacity=500,
+			uom="Kg")
+
+		# out of 500 kg capacity, occupy 100 kg in warehouse_1
+		stock_receipt = make_stock_entry(item_code="_Rice", target=warehouse_1, qty=100, basic_rate=50)
+
+		po = create_purchase_order(item_code="_Rice", qty=700)
+		self.assertEqual(len(po.items), 1)
+
+		pr = make_purchase_receipt(po.name)
+		self.assertEqual(len(pr.items), 2)
+		self.assertEqual(pr.items[0].qty, 500)
+		# warehouse_2 has 500 kg free space, it is given priority
+		self.assertEqual(pr.items[0].warehouse, warehouse_2)
+		self.assertEqual(pr.items[1].qty, 200)
+		# warehouse_1 has 400 kg free space, it is given less priority
+		self.assertEqual(pr.items[1].warehouse, warehouse_1)
+
+		po.cancel()
+		stock_receipt.cancel()
+		rule_1.delete()
+		rule_2.delete()
+
+	def test_putaway_rules_with_insufficient_capacity(self):
+		"""Test if qty exceeding capacity, is handled."""
+		warehouse_1 = frappe.db.get_value("Warehouse", {"warehouse_name": "Rack 1"})
+		warehouse_2 = frappe.db.get_value("Warehouse", {"warehouse_name": "Rack 2"})
+
+		rule_1 = create_putaway_rule(item_code="_Rice", warehouse=warehouse_1, capacity=100,
+			uom="Kg")
+		rule_2 = create_putaway_rule(item_code="_Rice", warehouse=warehouse_2, capacity=200,
+			uom="Kg")
+
+		po = create_purchase_order(item_code="_Rice", qty=350)
+		self.assertEqual(len(po.items), 1)
+
+		pr = make_purchase_receipt(po.name)
+
+		self.assertEqual(len(pr.items), 3)
+		self.assertEqual(pr.items[0].qty, 200)
+		self.assertEqual(pr.items[0].warehouse, warehouse_2)
+		self.assertEqual(pr.items[1].qty, 100)
+		self.assertEqual(pr.items[1].warehouse, warehouse_1)
+		# extra qty has no warehouse assigned
+		self.assertEqual(pr.items[2].qty, 50)
+		self.assertEqual(pr.items[2].warehouse, '')
+
+		po.cancel()
+		rule_1.delete()
+		rule_2.delete()
+
+	def test_putaway_rules_multi_uom(self):
+		"""Test rules applied on uom other than stock uom."""
+		item = frappe.get_doc("Item", "_Rice")
+		if not frappe.db.get_value("UOM Conversion Detail", {"parent": "_Rice", "uom": "Bag"}):
+			item.append("uoms", {
+				"uom": "Bag",
+				"conversion_factor": 1000
+			})
+			item.save()
+
+		warehouse_1 = frappe.db.get_value("Warehouse", {"warehouse_name": "Rack 1"})
+		warehouse_2 = frappe.db.get_value("Warehouse", {"warehouse_name": "Rack 2"})
+
+		rule_1 = create_putaway_rule(item_code="_Rice", warehouse=warehouse_1, capacity=3,
+			uom="Bag")
+		self.assertEqual(rule_1.stock_capacity, 3000)
+		rule_2 = create_putaway_rule(item_code="_Rice", warehouse=warehouse_2, capacity=4,
+			uom="Bag")
+		self.assertEqual(rule_2.stock_capacity, 4000)
+
+		stock_receipt = make_stock_entry(item_code="_Rice", target=warehouse_1, qty=1000, basic_rate=50)
+
+		po = create_purchase_order(item_code="_Rice", qty=6, do_not_save=True)
+		po.items[0].uom = "Bag"
+		po.save()
+		po.submit()
+
+		self.assertEqual(po.items[0].stock_qty, 6000)
+
+		pr = make_purchase_receipt(po.name)
+		self.assertEqual(len(pr.items), 2)
+		self.assertEqual(pr.items[0].qty, 4)
+		self.assertEqual(pr.items[0].warehouse, warehouse_2)
+		self.assertEqual(pr.items[1].qty, 2)
+		self.assertEqual(pr.items[1].warehouse, warehouse_1)
+
+		po.cancel()
+		stock_receipt.cancel()
+		rule_1.delete()
+		rule_2.delete()
+
+	def test_putaway_rules_multi_uom_whole_uom(self):
+		"""Test if whole UOMs are handled."""
+		item = frappe.get_doc("Item", "_Rice")
+		if not frappe.db.get_value("UOM Conversion Detail", {"parent": "_Rice", "uom": "Bag"}):
+			item.append("uoms", {
+				"uom": "Bag",
+				"conversion_factor": 1000
+			})
+			item.save()
+
+		frappe.db.set_value("UOM", "Bag", "must_be_whole_number", 1)
+
+		warehouse_1 = frappe.db.get_value("Warehouse", {"warehouse_name": "Rack 1"})
+		warehouse_2 = frappe.db.get_value("Warehouse", {"warehouse_name": "Rack 2"})
+
+		# Putaway Rule in different UOM
+		rule_1 = create_putaway_rule(item_code="_Rice", warehouse=warehouse_1, capacity=1,
+			uom="Bag")
+		self.assertEqual(rule_1.stock_capacity, 1000)
+		# Putaway Rule in Stock UOM
+		rule_2 = create_putaway_rule(item_code="_Rice", warehouse=warehouse_2, capacity=500)
+		self.assertEqual(rule_2.stock_capacity, 500)
+		# total capacity is 1500 Kg
+
+		po = create_purchase_order(item_code="_Rice", qty=2, do_not_save=True)
+		# PO for 2 Bags (2000 Kg)
+		po.items[0].uom = "Bag"
+		po.save()
+		po.submit()
+
+		self.assertEqual(po.items[0].stock_qty, 2000)
+
+		pr = make_purchase_receipt(po.name)
+		self.assertEqual(len(pr.items), 2)
+		self.assertEqual(pr.items[0].qty, 1)
+		self.assertEqual(pr.items[0].warehouse, warehouse_1)
+		# leftover space was for 500 kg (0.5 Bag)
+		# Since Bag is a whole UOM, 1(out of 2) Bag will be unassigned
+		self.assertEqual(pr.items[1].qty, 1)
+		self.assertEqual(pr.items[1].warehouse, '')
+
+		po.cancel()
+		rule_1.delete()
+		rule_2.delete()
+
+	def test_putaway_rules_with_reoccurring_item(self):
+		"""Test rules on same item entered multiple times."""
+		warehouse_1 = frappe.db.get_value("Warehouse", {"warehouse_name": "Rack 1"})
+		warehouse_2 = frappe.db.get_value("Warehouse", {"warehouse_name": "Rack 2"})
+
+		rule_1 = create_putaway_rule(item_code="_Rice", warehouse=warehouse_1, capacity=200,
+			uom="Kg")
+		rule_2 = create_putaway_rule(item_code="_Rice", warehouse=warehouse_2, capacity=100,
+			uom="Kg", priority=2)
+		# total capacity is 300 Kg
+
+		po = create_purchase_order(item_code="_Rice", qty=200, rate=100, do_not_save=True)
+		po.append("items", {
+			"item_code":"_Rice",
+			"warehouse": "_Test Warehouse - _TC",
+			"qty": 300,
+			"rate": 120,
+			"schedule_date": add_days(nowdate(), 1),
+		})
+		po.save()
+		po.submit()
+		# PO for 500 Kg (two rows of same item, different rates)
+		self.assertEqual(len(po.items), 2)
+
+		pr = make_purchase_receipt(po.name)
+		self.assertEqual(len(pr.items), 3)
+		self.assertEqual(pr.items[0].qty, 200)
+		self.assertEqual(pr.items[0].warehouse, warehouse_1)
+		# same rules applied to second item row
+		# with previous assignment considered
+		self.assertEqual(pr.items[1].qty, 100)
+		self.assertEqual(pr.items[1].warehouse, warehouse_2)
+		# unassigned 200 Kg
+		self.assertEqual(pr.items[2].qty, 200)
+		self.assertEqual(pr.items[2].warehouse, '')
+
+		po.cancel()
+		rule_1.delete()
+		rule_2.delete()
+
+def create_putaway_rule(**args):
+	args = frappe._dict(args)
+	putaway = frappe.new_doc("Putaway Rule")
+
+	putaway.disable = args.disable or 0
+	putaway.company = args.company or "_Test Company"
+	putaway.item_code = args.item or args.item_code or "_Test Item"
+	putaway.warehouse = args.warehouse
+	putaway.priority = args.priority or 1
+	putaway.capacity = args.capacity or 1
+	putaway.stock_uom = frappe.db.get_value("Item", putaway.item_code, "stock_uom")
+	putaway.uom = args.uom or putaway.stock_uom
+	putaway.conversion_factor = get_conversion_factor(putaway.item_code, putaway.uom)['conversion_factor']
+
+	if not args.do_not_save:
+		putaway.save()
+
+	return putaway
\ No newline at end of file