diff --git a/frappe/public/js/frappe/form/formatters.js b/frappe/public/js/frappe/form/formatters.js
index 6e08255e17..61e373ad7a 100644
--- a/frappe/public/js/frappe/form/formatters.js
+++ b/frappe/public/js/frappe/form/formatters.js
@@ -69,11 +69,11 @@ frappe.form.formatters = {
 			var decimals = parts.length > 1 ? parts[1] : ""; // parts.length == 2 ???
 
 			if ( decimals.length < 3 || decimals.length < precision ) {
-				const fraction = frappe.model.get_value(":Currency", currency, "smallest_currency_fraction_value") || 100; // if not set, minimum 2.
-				let fraction_parts = cstr(fraction).split(".");
+				const fraction = frappe.model.get_value(":Currency", currency, "fraction_units") || 100; // if not set, minimum 2.
+				precision      = cstr(fraction).length - 1;
 
-				if (fraction_parts.length > 1) {
-					precision = fraction_parts[1].length;
+				if (decimals.length < cstr(fraction).length) {
+					precision = cstr(fraction).length - 1;
 				}
 			}
 		}
diff --git a/frappe/utils/data.py b/frappe/utils/data.py
index fe198b7f36..04dde4e178 100644
--- a/frappe/utils/data.py
+++ b/frappe/utils/data.py
@@ -524,11 +524,8 @@ def fmt_money(amount, precision=None, currency=None):
 		if precision > 2:
 			if len(decimals) < 3:
 				if currency:
-					fraction  = frappe.db.get_value("Currency", currency, "smallest_currency_fraction_value", cache=True) or 100
-					fraction_parts = cstr(fraction).split(".")
-
-					if len(fraction_parts) > 1:
-						precision = len(fraction_parts[1])
+					fraction  = frappe.db.get_value("Currency", currency, "fraction_units", cache=True) or 100
+					precision = len(cstr(fraction)) - 1
 				else:
 					precision = number_format_precision
 			elif len(decimals) < precision: