diff --git a/erpnext/accounts/doctype/pricing_rule/pricing_rule.py b/erpnext/accounts/doctype/pricing_rule/pricing_rule.py
index 93685db..3f8018f 100644
--- a/erpnext/accounts/doctype/pricing_rule/pricing_rule.py
+++ b/erpnext/accounts/doctype/pricing_rule/pricing_rule.py
@@ -143,7 +143,7 @@
 	})
 	
 	if args.ignore_pricing_rule or not args.item_code:
-		if frappe.db.exists(args.doctype, args.name) and args.get("pricing_rule"):
+		if frappe.db.exists(args.doctype, args.name) or args.get("pricing_rule"):
 			item_details = remove_pricing_rule(args, item_details)
 		return item_details
 
@@ -178,7 +178,7 @@
 		item_details.margin_rate_or_amount = pricing_rule.margin_rate_or_amount
 		if pricing_rule.price_or_discount == "Price":
 			item_details.update({
-				"price_list_rate": pricing_rule.price/flt(args.conversion_rate) \
+				"price_list_rate": (pricing_rule.price/flt(args.conversion_rate)) * args.conversion_factor or 1.0 \
 					if args.conversion_rate else 0.0,
 				"discount_percentage": 0.0
 			})
diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index ecbf59d..bcdfe5f 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -186,7 +186,6 @@
 
 					ret = get_item_details(args)
 
-
 					for fieldname, value in ret.items():
 						if item.meta.get_field(fieldname) and value is not None:
 							if (item.get(fieldname) is None or fieldname in force_item_fields):
@@ -200,6 +199,10 @@
 								if stock_qty != len(item.get('serial_no').split('\n')):
 									item.set(fieldname, value)
 
+							elif fieldname in ["conversion_factor", "price_list_rate"]:
+								if for_validate and not item.get(fieldname):
+									item.set(fieldname, value)
+
 					if ret.get("pricing_rule"):
 						# if user changed the discount percentage then set user's discount percentage ?
 						item.set("discount_percentage", ret.get("discount_percentage"))
diff --git a/erpnext/controllers/selling_controller.py b/erpnext/controllers/selling_controller.py
index af51f70..91f57f5 100644
--- a/erpnext/controllers/selling_controller.py
+++ b/erpnext/controllers/selling_controller.py
@@ -41,7 +41,7 @@
 
 		# set contact and address details for customer, if they are not mentioned
 		self.set_missing_lead_customer_details()
-		self.set_price_list_and_item_details()
+		self.set_price_list_and_item_details(for_validate)
 
 	def set_missing_lead_customer_details(self):
 		if getattr(self, "customer", None):
@@ -60,9 +60,9 @@
 				posting_date=self.get('transaction_date') or self.get('posting_date'),
 				company=self.company))
 
-	def set_price_list_and_item_details(self):
+	def set_price_list_and_item_details(self, for_validate):
 		self.set_price_list_currency("Selling")
-		self.set_missing_item_details()
+		self.set_missing_item_details(for_validate=for_validate)
 
 	def apply_shipping_rule(self):
 		if self.shipping_rule:
diff --git a/erpnext/controllers/taxes_and_totals.py b/erpnext/controllers/taxes_and_totals.py
index 0355c26..362d075 100644
--- a/erpnext/controllers/taxes_and_totals.py
+++ b/erpnext/controllers/taxes_and_totals.py
@@ -60,6 +60,7 @@
 
 				if item.doctype in ['Quotation Item', 'Sales Order Item', 'Delivery Note Item', 'Sales Invoice Item']:
 					item.total_margin = self.calculate_margin(item)
+
 					item.rate = flt(item.total_margin * (1.0 - (item.discount_percentage / 100.0)), item.precision("rate"))\
 						if item.total_margin > 0 else item.rate
 
diff --git a/erpnext/public/js/controllers/taxes_and_totals.js b/erpnext/public/js/controllers/taxes_and_totals.js
index 6f55a44..08dd224 100644
--- a/erpnext/public/js/controllers/taxes_and_totals.js
+++ b/erpnext/public/js/controllers/taxes_and_totals.js
@@ -7,7 +7,7 @@
 		if(item.margin_type == "Percentage"){
 			item.total_margin = flt(item.price_list_rate) 
 				+ flt(item.price_list_rate) * ( flt(item.margin_rate_or_amount) / 100);
-		}else{
+		} else {
 			item.total_margin = flt(item.price_list_rate) + flt(item.margin_rate_or_amount);
 		}
 
diff --git a/erpnext/public/js/controllers/transaction.js b/erpnext/public/js/controllers/transaction.js
index ce3efc9..d84a4fc 100644
--- a/erpnext/public/js/controllers/transaction.js
+++ b/erpnext/public/js/controllers/transaction.js
@@ -284,6 +284,7 @@
 					callback: function(r) {
 						if(!r.exc) {
 							me.frm.script_manager.trigger("price_list_rate", cdt, cdn);
+							me.toggle_conversion_factor(item);
 						}
 					}
 				});
@@ -568,9 +569,17 @@
 			frappe.model.round_floats_in(item, ["qty", "conversion_factor"]);
 			item.stock_qty = flt(item.qty * item.conversion_factor, precision("stock_qty", item));
 			refresh_field("stock_qty", item.name, item.parentfield);
+			this.toggle_conversion_factor(item);
+			this.apply_price_list();
 		}
 	},
 
+	toggle_conversion_factor: function(item) {
+		// toggle read only property for conversion factor field if the uom and stock uom are same
+		this.frm.fields_dict.items.grid.toggle_enable("conversion_factor",
+			(item.uom != item.stock_uom)? true: false)
+	},
+
 	qty: function(doc, cdt, cdn) {
 		this.apply_pricing_rule(frappe.get_doc(cdt, cdn), true);
 		this.conversion_factor(doc, cdt, cdn);
@@ -766,6 +775,7 @@
 			"name": me.frm.doc.name,
 			"is_return": cint(me.frm.doc.is_return),
 			"update_stock": in_list(['Sales Invoice', 'Purchase Invoice'], me.frm.doc.doctype) ? cint(me.frm.doc.update_stock) : 0,
+			"conversion_factor": me.frm.doc.conversion_factor
 		};
 	},
 
@@ -785,7 +795,7 @@
 					"pricing_rule": d.pricing_rule,
 					"warehouse": d.warehouse,
 					"serial_no": d.serial_no,
-					"conversion_factor": d.conversion_factor
+					"conversion_factor": d.conversion_factor || 1.0
 				});
 
 				// if doctype is Quotation Item / Sales Order Iten then add Margin Type and rate in item_list
@@ -812,16 +822,13 @@
 		for(var i=0, l=children.length; i<l; i++) {
 			var d = children[i];
 			var existing_pricing_rule = frappe.model.get_value(d.doctype, d.name, "pricing_rule");
-
 			for(var k in d) {
 				var v = d[k];
 				if (["doctype", "name"].indexOf(k)===-1) {
 					if(k=="price_list_rate") {
 						if(flt(v) != flt(d.price_list_rate)) price_list_rate_changed = true;
 					}
-					if(v) {
-						frappe.model.set_value(d.doctype, d.name, k, v);
-					}
+					frappe.model.set_value(d.doctype, d.name, k, v);
 				}
 			}
 
diff --git a/erpnext/stock/get_item_details.py b/erpnext/stock/get_item_details.py
index c2e77df..998a65a 100644
--- a/erpnext/stock/get_item_details.py
+++ b/erpnext/stock/get_item_details.py
@@ -159,7 +159,6 @@
 			item.get("taxes")))),
 		"uom": item.stock_uom,
 		"min_order_qty": flt(item.min_order_qty) if args.doctype == "Material Request" else "",
-		"conversion_factor": 1.0,
 		"qty": args.qty or 1.0,
 		"stock_qty": args.qty or 1.0,
 		"price_list_rate": 0.0,
@@ -178,11 +177,14 @@
 	})
 
 	# calculate conversion factor
-	conversion_factor = args.get("conversion_factor") or get_conversion_factor(item.item_code, args.uom).get("conversion_factor") or 1.0
-	out.update({
-		"conversion_factor": conversion_factor,
-		"stock_qty": out.qty * conversion_factor
-	})
+	if item.stock_uom == args.uom:
+		out.conversion_factor = 1.0
+	else:
+		out.conversion_factor = args.conversion_factor or \
+			get_conversion_factor(item.item_code, args.uom).get("conversion_factor")  or 1.0
+
+	args.conversion_factor = out.conversion_factor
+	out.stock_qty = out.qty * out.conversion_factor
 
 	# if default specified in item is for another company, fetch from company
 	for d in [["Account", "income_account", "default_income_account"],
@@ -235,6 +237,8 @@
 		out.price_list_rate = flt(price_list_rate) * flt(args.plc_conversion_rate) \
 			/ flt(args.conversion_rate)
 
+		out.price_list_rate = flt(out.price_list_rate * (args.conversion_factor or 1.0))
+
 		if not out.price_list_rate and args.transaction_type=="buying":
 			from erpnext.stock.doctype.item.item import get_last_purchase_details
 			out.update(get_last_purchase_details(item_doc.name,