diff --git a/erpnext/buying/doctype/purchase_order/purchase_order.js b/erpnext/buying/doctype/purchase_order/purchase_order.js
index a51246b..8134e7e 100644
--- a/erpnext/buying/doctype/purchase_order/purchase_order.js
+++ b/erpnext/buying/doctype/purchase_order/purchase_order.js
@@ -1,3 +1,4 @@
+
 // Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and Contributors
 // License: GNU General Public License v3. See license.txt
 
@@ -24,6 +25,18 @@
 	},
 });
 
+frappe.ui.form.on("Purchase Order Item", {
+	item_code: function(frm) {
+		frappe.call({
+			method: "get_last_purchase_rate",
+			doc: frm.doc,
+			callback: function(r, rt) {
+				frm.trigger('calculate_taxes_and_totals');
+			}
+		})
+	}
+});
+
 erpnext.buying.PurchaseOrderController = erpnext.buying.BuyingController.extend({
 	refresh: function(doc, cdt, cdn) {
 		var me = this;
@@ -214,17 +227,6 @@
 
 	delivered_by_supplier: function(){
 		cur_frm.cscript.update_status('Deliver', 'Delivered')
-	},
-
-	get_last_purchase_rate: function() {
-		frappe.call({
-			"method": "get_last_purchase_rate",
-			"doc": cur_frm.doc,
-			callback: function(r, rt) {
-				cur_frm.dirty();
-				cur_frm.cscript.calculate_taxes_and_totals();
-			}
-		})
 	}
 
 });
diff --git a/erpnext/buying/doctype/purchase_order/purchase_order.json b/erpnext/buying/doctype/purchase_order/purchase_order.json
index 919707c..07a80b8 100644
--- a/erpnext/buying/doctype/purchase_order/purchase_order.json
+++ b/erpnext/buying/doctype/purchase_order/purchase_order.json
@@ -1213,37 +1213,6 @@
    "collapsible": 0, 
    "columns": 0, 
    "depends_on": "eval:doc.docstatus===0 && (doc.items && doc.items.length)", 
-   "fieldname": "get_last_purchase_rate", 
-   "fieldtype": "Button", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "label": "Get last purchase rate", 
-   "length": 0, 
-   "no_copy": 0, 
-   "permlevel": 0, 
-   "precision": "", 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }, 
-  {
-   "allow_bulk_edit": 0, 
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
-   "depends_on": "eval:doc.docstatus===0 && (doc.items && doc.items.length)", 
    "fieldname": "link_to_mrs", 
    "fieldtype": "Button", 
    "hidden": 0, 
@@ -3458,7 +3427,7 @@
  "issingle": 0, 
  "istable": 0, 
  "max_attachments": 0, 
- "modified": "2017-09-19 11:22:30.190589", 
+ "modified": "2017-09-22 16:11:49.856808", 
  "modified_by": "Administrator", 
  "module": "Buying", 
  "name": "Purchase Order", 
diff --git a/erpnext/buying/doctype/purchase_order/purchase_order.py b/erpnext/buying/doctype/purchase_order/purchase_order.py
index 56f3059..e2f5a9d 100644
--- a/erpnext/buying/doctype/purchase_order/purchase_order.py
+++ b/erpnext/buying/doctype/purchase_order/purchase_order.py
@@ -116,14 +116,13 @@
 					d.discount_percentage = last_purchase_details['discount_percentage']
 					d.base_rate = last_purchase_details['base_rate'] * (flt(d.conversion_factor) or 1.0)
 					d.price_list_rate = d.base_price_list_rate / conversion_rate
-					d.rate = d.base_rate / conversion_rate
+					d.last_purchase_rate = d.base_rate / conversion_rate
 				else:
-					msgprint(_("Last purchase rate not found"))
 
 					item_last_purchase_rate = frappe.db.get_value("Item", d.item_code, "last_purchase_rate")
 					if item_last_purchase_rate:
 						d.base_price_list_rate = d.base_rate = d.price_list_rate \
-							= d.rate = item_last_purchase_rate
+							= d.last_purchase_rate = item_last_purchase_rate
 
 	# Check for Closed status
 	def check_for_closed_status(self):
diff --git a/erpnext/buying/doctype/purchase_order/tests/test_purchase_order_with_last_purchase_rate.js b/erpnext/buying/doctype/purchase_order/tests/test_purchase_order_with_last_purchase_rate.js
new file mode 100644
index 0000000..d19f017
--- /dev/null
+++ b/erpnext/buying/doctype/purchase_order/tests/test_purchase_order_with_last_purchase_rate.js
@@ -0,0 +1,99 @@
+QUnit.module('Buying');
+
+QUnit.test("test: purchase order with last purchase rate", function(assert) {
+	assert.expect(5);
+	let done = assert.async();
+
+	frappe.run_serially([
+		() => {
+			return frappe.tests.make('Purchase Order', [
+				{supplier: 'Test Supplier'},
+				{is_subcontracted: 'No'},
+				{currency: 'INR'},
+				{items: [
+					[
+						{"item_code": 'Test Product 4'},
+						{"schedule_date": frappe.datetime.add_days(frappe.datetime.now_date(), 1)},
+						{"expected_delivery_date": frappe.datetime.add_days(frappe.datetime.now_date(), 5)},
+						{"qty": 1},
+						{"rate": 800},
+						{"warehouse": 'Stores - '+frappe.get_abbr(frappe.defaults.get_default("Company"))}
+					],
+					[
+						{"item_code": 'Test Product 1'},
+						{"schedule_date": frappe.datetime.add_days(frappe.datetime.now_date(), 1)},
+						{"expected_delivery_date": frappe.datetime.add_days(frappe.datetime.now_date(), 5)},
+						{"qty": 1},
+						{"rate": 400},
+						{"warehouse": 'Stores - '+frappe.get_abbr(frappe.defaults.get_default("Company"))}
+					]
+				]}
+			]);
+		},
+
+		() => {
+			// Get item details
+			assert.ok(cur_frm.doc.items[0].item_name == 'Test Product 4', "Item 1 name correct");
+			assert.ok(cur_frm.doc.items[1].item_name == 'Test Product 1', "Item 2 name correct");
+		},
+
+		() => frappe.timeout(1),
+
+		() => frappe.tests.click_button('Submit'),
+		() => frappe.tests.click_button('Yes'),
+		() => frappe.timeout(3),
+
+		() => frappe.tests.click_button('Close'),
+		() => frappe.timeout(1),
+
+		() => {
+			return frappe.tests.make('Purchase Order', [
+				{supplier: 'Test Supplier'},
+				{is_subcontracted: 'No'},
+				{currency: 'INR'},
+				{items: [
+					[
+						{"item_code": 'Test Product 4'},
+						{"schedule_date": frappe.datetime.add_days(frappe.datetime.now_date(), 1)},
+						{"expected_delivery_date": frappe.datetime.add_days(frappe.datetime.now_date(), 5)},
+						{"qty": 1},
+						{"rate": 600},
+						{"warehouse": 'Stores - '+frappe.get_abbr(frappe.defaults.get_default("Company"))}
+					],
+					[
+						{"item_code": 'Test Product 1'},
+						{"schedule_date": frappe.datetime.add_days(frappe.datetime.now_date(), 1)},
+						{"expected_delivery_date": frappe.datetime.add_days(frappe.datetime.now_date(), 5)},
+						{"qty": 1},
+						{"rate": 200},
+						{"warehouse": 'Stores - '+frappe.get_abbr(frappe.defaults.get_default("Company"))}
+					]
+				]}
+			]);
+		},
+
+		() => frappe.timeout(2),
+
+		// Get the last purchase rate of items
+		() => {
+			assert.ok(cur_frm.doc.items[0].last_purchase_rate == 800, "Last purchase rate of item 1 correct");
+		},
+		() => {
+			assert.ok(cur_frm.doc.items[1].last_purchase_rate == 400, "Last purchase rate of item 2 correct");
+		},
+
+		() => frappe.tests.click_button('Submit'),
+		() => frappe.tests.click_button('Yes'),
+		() => frappe.timeout(3),
+
+		() => frappe.tests.click_button('Close'),
+
+		() => frappe.timeout(1),
+
+		() => {
+			assert.ok(cur_frm.doc.status == 'To Receive and Bill', "Submitted successfully");
+		},
+
+		() => done()
+	]);
+});
\ No newline at end of file
diff --git a/erpnext/buying/doctype/purchase_order_item/purchase_order_item.json b/erpnext/buying/doctype/purchase_order_item/purchase_order_item.json
index 2dd7b6c..1ddce62 100755
--- a/erpnext/buying/doctype/purchase_order_item/purchase_order_item.json
+++ b/erpnext/buying/doctype/purchase_order_item/purchase_order_item.json
@@ -661,6 +661,37 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
+   "fieldname": "last_purchase_rate", 
+   "fieldtype": "Currency", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_global_search": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Last Purchase Rate", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "currency", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_bulk_edit": 0, 
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "base_price_list_rate", 
    "fieldtype": "Currency", 
    "hidden": 0, 
@@ -1714,7 +1745,7 @@
  "issingle": 0, 
  "istable": 1, 
  "max_attachments": 0, 
- "modified": "2017-08-02 22:15:47.411235", 
+ "modified": "2017-09-22 16:47:08.783546", 
  "modified_by": "Administrator", 
  "module": "Buying", 
  "name": "Purchase Order Item", 
diff --git a/erpnext/tests/ui/tests.txt b/erpnext/tests/ui/tests.txt
index 909216b..199d886 100644
--- a/erpnext/tests/ui/tests.txt
+++ b/erpnext/tests/ui/tests.txt
@@ -128,3 +128,4 @@
 erpnext/stock/doctype/stock_entry/tests/test_stock_entry_for_repack.js
 erpnext/accounts/doctype/sales_invoice/tests/test_sales_invoice_with_serialize_item.js
 erpnext/accounts/doctype/payment_entry/tests/test_payment_against_invoice.js
+erpnext/buying/doctype/purchase_order/tests/test_purchase_order_with_last_purchase_rate.js
\ No newline at end of file