diff --git a/src/main/java/org/openlmis/stockmanagement/service/HomeFacilityPermissionService.java b/src/main/java/org/openlmis/stockmanagement/service/HomeFacilityPermissionService.java
index 46137274..3b27f1fd 100644
--- a/src/main/java/org/openlmis/stockmanagement/service/HomeFacilityPermissionService.java
+++ b/src/main/java/org/openlmis/stockmanagement/service/HomeFacilityPermissionService.java
@@ -28,6 +28,9 @@
 
 @Service
 public class HomeFacilityPermissionService {
+
+  static final String WS_TYPE_CODE = "WS";
+
   @Autowired
   private AuthenticationHelper authenticationHelper;
   
@@ -56,7 +59,7 @@ public void checkProgramSupported(UUID programId) {
 
   /**
    * Returns true if facility is within the same geographic zone as the home facility.
-   * Returns false otherwise.
+   * Returns false otherwise or in case facility id is equal to home facility id.
    *
    * @param facilityId UUID of facility
    * @return boolean flag indicating linkage between facility and home facility
@@ -67,7 +70,7 @@ public boolean checkFacilityAndHomeFacilityLinkage(UUID facilityId) {
       return false;
     }
     FacilityDto facility = facilityService.findOne(facilityId);
-    if (facility.getType().getCode().equals("WS")) {
+    if (facility.getType().getCode().equals(WS_TYPE_CODE)) {
       FacilityDto homeFacility = facilityService.findOne(homeFacilityId);
       return homeFacility.getGeographicZone().getId().equals(facility.getGeographicZone().getId());
     } else {
@@ -78,4 +81,4 @@ public boolean checkFacilityAndHomeFacilityLinkage(UUID facilityId) {
   private void throwException(String errorKey, String... params) {
     throw new PermissionMessageException(new Message(errorKey, (Object)params));
   }
-}
\ No newline at end of file
+}
diff --git a/src/test/java/org/openlmis/stockmanagement/service/HomeFacilityPermissionServiceTest.java b/src/test/java/org/openlmis/stockmanagement/service/HomeFacilityPermissionServiceTest.java
index 2426ff60..656453db 100644
--- a/src/test/java/org/openlmis/stockmanagement/service/HomeFacilityPermissionServiceTest.java
+++ b/src/test/java/org/openlmis/stockmanagement/service/HomeFacilityPermissionServiceTest.java
@@ -16,8 +16,11 @@
 package org.openlmis.stockmanagement.service;
 
 import static java.util.UUID.randomUUID;
+import static org.junit.Assert.assertTrue;
 import static org.mockito.Mockito.mock;
+import static org.mockito.Mockito.verify;
 import static org.mockito.Mockito.when;
+import static org.openlmis.stockmanagement.service.HomeFacilityPermissionService.WS_TYPE_CODE;
 
 import java.util.Collections;
 import java.util.UUID;
@@ -28,6 +31,7 @@
 import org.mockito.Mock;
 import org.openlmis.stockmanagement.dto.referencedata.FacilityDto;
 import org.openlmis.stockmanagement.dto.referencedata.FacilityTypeDto;
+import org.openlmis.stockmanagement.dto.referencedata.GeographicZoneDto;
 import org.openlmis.stockmanagement.dto.referencedata.SupportedProgramDto;
 import org.openlmis.stockmanagement.dto.referencedata.UserDto;
 import org.openlmis.stockmanagement.exception.PermissionMessageException;
@@ -57,10 +61,10 @@ public class HomeFacilityPermissionServiceTest {
 
   @Mock
   private OAuth2Authentication authentication;
-  
+
   @Mock
   private FacilityReferenceDataService facilityService;
-  
+
   private UUID homeFacilityId;
   private UUID programId;
   private UUID facilityTypeId;
@@ -91,13 +95,42 @@ public void shouldPassValidationIfProgramIsSupported() throws Exception {
 
     homeFacilityPermissionService.checkProgramSupported(programId);
   }
-  
+
+  @Test
+  public void shouldPassCheckIfFacilityIsWithinTheSameGeographicZoneAsHomeFacility() {
+    //given
+    FacilityDto facilityDto = mock(FacilityDto.class);
+    FacilityTypeDto facilityTypeDto = new FacilityTypeDto();
+    facilityTypeDto.setCode(WS_TYPE_CODE);
+    when(facilityDto.getType()).thenReturn(facilityTypeDto);
+    UUID geographicZoneId = randomUUID();
+
+    mockGeographicZoneId(facilityDto, geographicZoneId);
+    mockGeographicZoneId(homeFacilityDto, geographicZoneId);
+    UUID facilityId = UUID.randomUUID();
+    when(facilityService.findOne(facilityId)).thenReturn(facilityDto);
+
+    //when
+    boolean result = homeFacilityPermissionService.checkFacilityAndHomeFacilityLinkage(facilityId);
+
+    //then
+    assertTrue(result);
+    verify(facilityService).findOne(facilityId);
+    verify(facilityService).findOne(homeFacilityId);
+  }
+
+  private void mockGeographicZoneId(FacilityDto facilityDto, UUID geographicZoneId) {
+    GeographicZoneDto geographicZoneDto = new GeographicZoneDto();
+    geographicZoneDto.setId(geographicZoneId);
+    when(facilityDto.getGeographicZone()).thenReturn(geographicZoneDto);
+  }
+
   private void mockUserDto() {
     userDto = mock(UserDto.class);
     when(userDto.getHomeFacilityId()).thenReturn(homeFacilityId);
     when(authenticationHelper.getCurrentUser()).thenReturn(userDto);
   }
-  
+
   private void mockFacilityDto() {
     homeFacilityDto = mock(FacilityDto.class);
 
@@ -112,4 +145,4 @@ private void mockFacilityDto() {
 
     when(facilityService.findOne(homeFacilityId)).thenReturn(homeFacilityDto);
   }
-}
\ No newline at end of file
+}