diff --git a/erpnext/buying/doctype/purchase_order/test_purchase_order.py b/erpnext/buying/doctype/purchase_order/test_purchase_order.py
index 0f8574c84dfe..f80a00a95f68 100644
--- a/erpnext/buying/doctype/purchase_order/test_purchase_order.py
+++ b/erpnext/buying/doctype/purchase_order/test_purchase_order.py
@@ -981,6 +981,38 @@ def update_items(po, qty):
 		self.assertEqual(po.items[0].qty, 30)
 		self.assertEqual(po.items[0].fg_item_qty, 30)
 
+	@change_settings("Buying Settings", {"auto_create_subcontracting_order": 1})
+	def test_auto_create_subcontracting_order(self):
+		from erpnext.controllers.tests.test_subcontracting_controller import (
+			make_bom_for_subcontracted_items,
+			make_raw_materials,
+			make_service_items,
+			make_subcontracted_items,
+		)
+
+		make_subcontracted_items()
+		make_raw_materials()
+		make_service_items()
+		make_bom_for_subcontracted_items()
+
+		service_items = [
+			{
+				"warehouse": "_Test Warehouse - _TC",
+				"item_code": "Subcontracted Service Item 7",
+				"qty": 10,
+				"rate": 100,
+				"fg_item": "Subcontracted Item SA7",
+				"fg_item_qty": 10,
+			},
+		]
+		po = create_purchase_order(
+			rm_items=service_items,
+			is_subcontracted=1,
+			supplier_warehouse="_Test Warehouse 1 - _TC",
+		)
+
+		self.assertTrue(frappe.db.get_value("Subcontracting Order", {"purchase_order": po.name}))
+
 
 def prepare_data_for_internal_transfer():
 	from erpnext.accounts.doctype.sales_invoice.test_sales_invoice import create_internal_supplier