diff --git a/erpnext/buying/doctype/supplier/supplier.py b/erpnext/buying/doctype/supplier/supplier.py
index 6ddc2809c7f0..6fdeaaa4c1ec 100644
--- a/erpnext/buying/doctype/supplier/supplier.py
+++ b/erpnext/buying/doctype/supplier/supplier.py
@@ -84,6 +84,9 @@ def get_supplier_group_details(self):
 		self.save()
 
 	def validate_internal_supplier(self):
+		if not self.is_internal_supplier:
+			self.represents_company = ""
+
 		internal_supplier = frappe.db.get_value(
 			"Supplier",
 			{
diff --git a/erpnext/selling/doctype/customer/customer.py b/erpnext/selling/doctype/customer/customer.py
index 8889a5f939af..35e0b0de4070 100644
--- a/erpnext/selling/doctype/customer/customer.py
+++ b/erpnext/selling/doctype/customer/customer.py
@@ -141,6 +141,9 @@ def validate_default_bank_account(self):
 				)
 
 	def validate_internal_customer(self):
+		if not self.is_internal_customer:
+			self.represents_company = ""
+
 		internal_customer = frappe.db.get_value(
 			"Customer",
 			{