diff --git a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
index 231b3bf..21cc253 100644
--- a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
+++ b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
@@ -2539,6 +2539,37 @@
 		frappe.local.enable_perpetual_inventory["_Test Company 1"] = old_perpetual_inventory
 		frappe.db.set_single_value("Stock Settings", "allow_negative_stock", old_negative_stock)
 
+	def test_sle_for_target_warehouse(self):
+		se = make_stock_entry(
+			item_code="138-CMS Shoe",
+			target="Finished Goods - _TC",
+			company="_Test Company",
+			qty=1,
+			basic_rate=500,
+		)
+
+		si = frappe.copy_doc(test_records[0])
+		si.customer = "_Test Internal Customer 3"
+		si.update_stock = 1
+		si.set_warehouse = "Finished Goods - _TC"
+		si.set_target_warehouse = "Stores - _TC"
+		si.get("items")[0].warehouse = "Finished Goods - _TC"
+		si.get("items")[0].target_warehouse = "Stores - _TC"
+		si.insert()
+		si.submit()
+
+		sles = frappe.get_all(
+			"Stock Ledger Entry", filters={"voucher_no": si.name}, fields=["name", "actual_qty"]
+		)
+
+		# check if both SLEs are created
+		self.assertEqual(len(sles), 2)
+		self.assertEqual(sum(d.actual_qty for d in sles), 0.0)
+
+		# tear down
+		si.cancel()
+		se.cancel()
+
 	def test_internal_transfer_gl_entry(self):
 		si = create_sales_invoice(
 			company="_Test Company with perpetual inventory",
@@ -3662,6 +3693,20 @@
 		allowed_to_interact_with="_Test Company with perpetual inventory",
 	)
 
+	create_internal_customer(
+		customer_name="_Test Internal Customer 3",
+		represents_company="_Test Company",
+		allowed_to_interact_with="_Test Company",
+	)
+
+	account = create_account(
+		account_name="Unrealized Profit",
+		parent_account="Current Liabilities - _TC",
+		company="_Test Company",
+	)
+
+	frappe.db.set_value("Company", "_Test Company", "unrealized_profit_loss_account", account)
+
 	create_internal_supplier(
 		supplier_name="_Test Internal Supplier",
 		represents_company="Wind Power LLC",
diff --git a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
index e998b84..146cbff 100644
--- a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
@@ -957,6 +957,119 @@
 		pr1.reload()
 		pr1.cancel()
 
+	def test_stock_transfer_from_purchase_receipt(self):
+		from erpnext.stock.doctype.delivery_note.delivery_note import make_inter_company_purchase_receipt
+		from erpnext.stock.doctype.delivery_note.test_delivery_note import create_delivery_note
+
+		prepare_data_for_internal_transfer()
+
+		customer = "_Test Internal Customer 2"
+		company = "_Test Company with perpetual inventory"
+
+		pr1 = make_purchase_receipt(
+			warehouse="Stores - TCP1", company="_Test Company with perpetual inventory"
+		)
+
+		dn1 = create_delivery_note(
+			item_code=pr1.items[0].item_code,
+			company=company,
+			customer=customer,
+			cost_center="Main - TCP1",
+			expense_account="Cost of Goods Sold - TCP1",
+			qty=5,
+			rate=500,
+			warehouse="Stores - TCP1",
+			target_warehouse="Work In Progress - TCP1",
+		)
+
+		pr = make_inter_company_purchase_receipt(dn1.name)
+		pr.items[0].from_warehouse = "Work In Progress - TCP1"
+		pr.items[0].warehouse = "Stores - TCP1"
+		pr.submit()
+
+		gl_entries = get_gl_entries("Purchase Receipt", pr.name)
+		sl_entries = get_sl_entries("Purchase Receipt", pr.name)
+
+		self.assertFalse(gl_entries)
+
+		expected_sle = {"Work In Progress - TCP1": -5, "Stores - TCP1": 5}
+
+		for sle in sl_entries:
+			self.assertEqual(expected_sle[sle.warehouse], sle.actual_qty)
+
+		pr.cancel()
+
+	def test_stock_transfer_from_purchase_receipt_with_valuation(self):
+		from erpnext.stock.doctype.delivery_note.delivery_note import make_inter_company_purchase_receipt
+		from erpnext.stock.doctype.delivery_note.test_delivery_note import create_delivery_note
+
+		prepare_data_for_internal_transfer()
+
+		create_warehouse(
+			"_Test Warehouse for Valuation",
+			company="_Test Company with perpetual inventory",
+			properties={"account": "_Test Account Stock In Hand - TCP1"},
+		)
+
+		pr1 = make_purchase_receipt(
+			warehouse="Stores - TCP1",
+			company="_Test Company with perpetual inventory",
+		)
+
+		customer = "_Test Internal Customer 2"
+		company = "_Test Company with perpetual inventory"
+
+		dn1 = create_delivery_note(
+			item_code=pr1.items[0].item_code,
+			company=company,
+			customer=customer,
+			cost_center="Main - TCP1",
+			expense_account="Cost of Goods Sold - TCP1",
+			qty=5,
+			rate=50,
+			warehouse="Stores - TCP1",
+			target_warehouse="_Test Warehouse for Valuation - TCP1",
+		)
+
+		pr = make_inter_company_purchase_receipt(dn1.name)
+		pr.items[0].from_warehouse = "_Test Warehouse for Valuation - TCP1"
+		pr.items[0].warehouse = "Stores - TCP1"
+
+		pr.append(
+			"taxes",
+			{
+				"charge_type": "On Net Total",
+				"account_head": "_Test Account Shipping Charges - TCP1",
+				"category": "Valuation and Total",
+				"cost_center": "Main - TCP1",
+				"description": "Test",
+				"rate": 9,
+			},
+		)
+
+		pr.submit()
+
+		gl_entries = get_gl_entries("Purchase Receipt", pr.name)
+		sl_entries = get_sl_entries("Purchase Receipt", pr.name)
+
+		expected_gle = [
+			["Stock In Hand - TCP1", 272.5, 0.0],
+			["_Test Account Stock In Hand - TCP1", 0.0, 250.0],
+			["_Test Account Shipping Charges - TCP1", 0.0, 22.5],
+		]
+
+		expected_sle = {"_Test Warehouse for Valuation - TCP1": -5, "Stores - TCP1": 5}
+
+		for sle in sl_entries:
+			self.assertEqual(expected_sle[sle.warehouse], sle.actual_qty)
+
+		for i, gle in enumerate(gl_entries):
+			self.assertEqual(gle.account, expected_gle[i][0])
+			self.assertEqual(gle.debit, expected_gle[i][1])
+			self.assertEqual(gle.credit, expected_gle[i][2])
+
+		pr.cancel()
+
 	def test_po_to_pi_and_po_to_pr_worflow_full(self):
 		"""Test following behaviour:
 		- Create PO