diff --git a/erpnext/selling/doctype/sales_order/sales_order.py b/erpnext/selling/doctype/sales_order/sales_order.py
index 5d44582..ff459cb 100755
--- a/erpnext/selling/doctype/sales_order/sales_order.py
+++ b/erpnext/selling/doctype/sales_order/sales_order.py
@@ -950,8 +950,56 @@
 			"condition": lambda doc: doc.ordered_qty < doc.stock_qty and doc.item_code in items_to_map
 		}
 	}, target_doc, set_missing_values)
+
+	doc.items = replace_product_bundles_with_bundle_items(doc.items, source_name)
+
 	return doc
 
+def replace_product_bundles_with_bundle_items(items, sales_order_name):
+	updated_items = []
+
+	for item in items:
+		if is_product_bundle(item.item_code):
+			bundle_items = get_bundle_items(item.item_code, sales_order_name)
+			insert_bundle_items(updated_items, bundle_items, item, sales_order_name)
+		else:
+			updated_items.append(item)
+
+	items = updated_items
+
+	return items
+
+def is_product_bundle(item_code):
+	return frappe.db.exists('Product Bundle', item_code)
+
+def get_bundle_items(item_code, so_name):
+	return frappe.get_all(
+		'Packed Item', 
+		filters = {
+			'parent': so_name,
+			'parent_item': item_code
+		},
+		fields = ['item_code', 'item_name', 'qty', 'rate', 'uom']
+	)
+
+def insert_bundle_items(updated_items, bundle_items, item, sales_order):
+	for bundle_item in bundle_items:
+		new_item = frappe.get_doc({
+			'doctype': 'Purchase Order Item',
+			'item_code': bundle_item.item_code,
+			'item_name': bundle_item.item_name,
+			'product_bundle': item.item_code,
+			'qty': bundle_item.qty,
+			'rate': bundle_item.rate,
+			'uom': bundle_item.uom,
+			'schedule_date': item.schedule_date,
+			'sales_order': sales_order,
+			'expense_account': item.expense_account,
+			'cost_center': item.cost_center
+		})
+
+		updated_items.append(new_item)
+
 @frappe.whitelist()
 def make_work_orders(items, sales_order, company, project=None):
 	'''Make Work Orders against the given Sales Order for the given `items`'''