Merge branch 'develop' into refactor/stock/reports
diff --git a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
index 2b633cb..5dbe7eb 100644
--- a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
+++ b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.py
@@ -705,6 +705,10 @@
 							)
 						)
 
+						credit_amount = item.base_net_amount
+						if self.is_internal_supplier and item.valuation_rate:
+							credit_amount = flt(item.valuation_rate * item.stock_qty)
+
 						# Intentionally passed negative debit amount to avoid incorrect GL Entry validation
 						gl_entries.append(
 							self.get_gl_dict(
@@ -714,7 +718,7 @@
 									"cost_center": item.cost_center,
 									"project": item.project or self.project,
 									"remarks": self.get("remarks") or _("Accounting Entry for Stock"),
-									"debit": -1 * flt(item.base_net_amount, item.precision("base_net_amount")),
+									"debit": -1 * flt(credit_amount, item.precision("base_net_amount")),
 								},
 								warehouse_account[item.from_warehouse]["account_currency"],
 								item=item,
diff --git a/erpnext/accounts/doctype/purchase_invoice_item/purchase_invoice_item.json b/erpnext/accounts/doctype/purchase_invoice_item/purchase_invoice_item.json
index fca7e3a..9de9036 100644
--- a/erpnext/accounts/doctype/purchase_invoice_item/purchase_invoice_item.json
+++ b/erpnext/accounts/doctype/purchase_invoice_item/purchase_invoice_item.json
@@ -711,6 +711,7 @@
    "label": "Valuation Rate",
    "no_copy": 1,
    "options": "Company:company:default_currency",
+   "precision": "6",
    "print_hide": 1,
    "read_only": 1
   },
@@ -870,7 +871,7 @@
  "idx": 1,
  "istable": 1,
  "links": [],
- "modified": "2022-09-27 10:54:23.980713",
+ "modified": "2022-10-12 03:37:29.032732",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Purchase Invoice Item",
diff --git a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
index ce44ae3..301d3e1 100644
--- a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
+++ b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
@@ -32,10 +32,20 @@
 	get_qty_after_transaction,
 	make_stock_entry,
 )
-from erpnext.stock.utils import get_incoming_rate
+from erpnext.stock.doctype.stock_reconciliation.test_stock_reconciliation import (
+	create_stock_reconciliation,
+)
+from erpnext.stock.utils import get_incoming_rate, get_stock_balance
 
 
 class TestSalesInvoice(unittest.TestCase):
+	def setUp(self):
+		from erpnext.stock.doctype.stock_ledger_entry.test_stock_ledger_entry import create_items
+
+		create_items(["_Test Internal Transfer Item"], uoms=[{"uom": "Box", "conversion_factor": 10}])
+		create_internal_parties()
+		setup_accounts()
+
 	def make(self):
 		w = frappe.copy_doc(test_records[0])
 		w.is_pos = 0
@@ -1705,7 +1715,7 @@
 		si.save()
 		self.assertEqual(si.get("items")[0].rate, flt((price_list_rate * 25) / 100 + price_list_rate))
 
-	def test_outstanding_amount_after_advance_jv_cancelation(self):
+	def test_outstanding_amount_after_advance_jv_cancellation(self):
 		from erpnext.accounts.doctype.journal_entry.test_journal_entry import (
 			test_records as jv_test_records,
 		)
@@ -1749,7 +1759,7 @@
 			flt(si.rounded_total + si.total_advance, si.precision("outstanding_amount")),
 		)
 
-	def test_outstanding_amount_after_advance_payment_entry_cancelation(self):
+	def test_outstanding_amount_after_advance_payment_entry_cancellation(self):
 		pe = frappe.get_doc(
 			{
 				"doctype": "Payment Entry",
@@ -2367,29 +2377,6 @@
 		acc_settings.save()
 
 	def test_inter_company_transaction(self):
-		from erpnext.selling.doctype.customer.test_customer import create_internal_customer
-
-		create_internal_customer(
-			customer_name="_Test Internal Customer",
-			represents_company="_Test Company 1",
-			allowed_to_interact_with="Wind Power LLC",
-		)
-
-		if not frappe.db.exists("Supplier", "_Test Internal Supplier"):
-			supplier = frappe.get_doc(
-				{
-					"supplier_group": "_Test Supplier Group",
-					"supplier_name": "_Test Internal Supplier",
-					"doctype": "Supplier",
-					"is_internal_supplier": 1,
-					"represents_company": "Wind Power LLC",
-				}
-			)
-
-			supplier.append("companies", {"company": "_Test Company 1"})
-
-			supplier.insert()
-
 		si = create_sales_invoice(
 			company="Wind Power LLC",
 			customer="_Test Internal Customer",
@@ -2440,38 +2427,6 @@
 			"Expenses Included In Valuation - _TC1",
 		)
 
-		if not frappe.db.exists("Customer", "_Test Internal Customer"):
-			customer = frappe.get_doc(
-				{
-					"customer_group": "_Test Customer Group",
-					"customer_name": "_Test Internal Customer",
-					"customer_type": "Individual",
-					"doctype": "Customer",
-					"territory": "_Test Territory",
-					"is_internal_customer": 1,
-					"represents_company": "_Test Company 1",
-				}
-			)
-
-			customer.append("companies", {"company": "Wind Power LLC"})
-
-			customer.insert()
-
-		if not frappe.db.exists("Supplier", "_Test Internal Supplier"):
-			supplier = frappe.get_doc(
-				{
-					"supplier_group": "_Test Supplier Group",
-					"supplier_name": "_Test Internal Supplier",
-					"doctype": "Supplier",
-					"is_internal_supplier": 1,
-					"represents_company": "Wind Power LLC",
-				}
-			)
-
-			supplier.append("companies", {"company": "_Test Company 1"})
-
-			supplier.insert()
-
 		# begin test
 		si = create_sales_invoice(
 			company="Wind Power LLC",
@@ -2541,34 +2496,9 @@
 		se.cancel()
 
 	def test_internal_transfer_gl_entry(self):
-		## Create internal transfer account
-		from erpnext.selling.doctype.customer.test_customer import create_internal_customer
-
-		account = create_account(
-			account_name="Unrealized Profit",
-			parent_account="Current Liabilities - TCP1",
-			company="_Test Company with perpetual inventory",
-		)
-
-		frappe.db.set_value(
-			"Company", "_Test Company with perpetual inventory", "unrealized_profit_loss_account", account
-		)
-
-		customer = create_internal_customer(
-			"_Test Internal Customer 2",
-			"_Test Company with perpetual inventory",
-			"_Test Company with perpetual inventory",
-		)
-
-		create_internal_supplier(
-			"_Test Internal Supplier 2",
-			"_Test Company with perpetual inventory",
-			"_Test Company with perpetual inventory",
-		)
-
 		si = create_sales_invoice(
 			company="_Test Company with perpetual inventory",
-			customer=customer,
+			customer="_Test Internal Customer 2",
 			debit_to="Debtors - TCP1",
 			warehouse="Stores - TCP1",
 			income_account="Sales - TCP1",
@@ -2582,7 +2512,7 @@
 		si.update_stock = 1
 		si.items[0].target_warehouse = "Work In Progress - TCP1"
 
-		# Add stock to stores for succesful stock transfer
+		# Add stock to stores for successful stock transfer
 		make_stock_entry(
 			target="Stores - TCP1", company="_Test Company with perpetual inventory", qty=1, basic_rate=100
 		)
@@ -2638,6 +2568,77 @@
 
 		check_gl_entries(self, target_doc.name, pi_gl_entries, add_days(nowdate(), -1))
 
+	def test_internal_transfer_gl_precision_issues(self):
+		# Make a stock queue of an item with two valuations
+
+		# Remove all existing stock for this
+		if get_stock_balance("_Test Internal Transfer Item", "Stores - TCP1", "2022-04-10"):
+			create_stock_reconciliation(
+				item_code="_Test Internal Transfer Item",
+				warehouse="Stores - TCP1",
+				qty=0,
+				rate=0,
+				company="_Test Company with perpetual inventory",
+				expense_account="Stock Adjustment - TCP1"
+				if frappe.get_all("Stock Ledger Entry")
+				else "Temporary Opening - TCP1",
+				posting_date="2020-04-10",
+				posting_time="14:00",
+			)
+
+		make_stock_entry(
+			item_code="_Test Internal Transfer Item",
+			target="Stores - TCP1",
+			qty=9000000,
+			basic_rate=52.0,
+			posting_date="2020-04-10",
+			posting_time="14:00",
+		)
+		make_stock_entry(
+			item_code="_Test Internal Transfer Item",
+			target="Stores - TCP1",
+			qty=60000000,
+			basic_rate=52.349777,
+			posting_date="2020-04-10",
+			posting_time="14:00",
+		)
+
+		# Make an internal transfer Sales Invoice Stock in non stock uom to check
+		# for rounding errors while converting to stock uom
+		si = create_sales_invoice(
+			company="_Test Company with perpetual inventory",
+			customer="_Test Internal Customer 2",
+			item_code="_Test Internal Transfer Item",
+			qty=5000000,
+			uom="Box",
+			debit_to="Debtors - TCP1",
+			warehouse="Stores - TCP1",
+			income_account="Sales - TCP1",
+			expense_account="Cost of Goods Sold - TCP1",
+			cost_center="Main - TCP1",
+			currency="INR",
+			do_not_save=1,
+		)
+
+		# Check GL Entries with precision
+		si.update_stock = 1
+		si.items[0].target_warehouse = "Work In Progress - TCP1"
+		si.items[0].conversion_factor = 10
+		si.save()
+		si.submit()
+
+		# Check if adjustment entry is created
+		self.assertTrue(
+			frappe.db.exists(
+				"GL Entry",
+				{
+					"voucher_type": "Sales Invoice",
+					"voucher_no": si.name,
+					"remarks": "Rounding gain/loss Entry for Stock Transfer",
+				},
+			)
+		)
+
 	def test_item_tax_net_range(self):
 		item = create_item("T Shirt")
 
@@ -3077,7 +3078,7 @@
 			[deferred_account, 2022.47, 0.0, "2019-03-15"],
 		]
 
-		gl_entries = gl_entries = frappe.db.sql(
+		gl_entries = frappe.db.sql(
 			"""select account, debit, credit, posting_date
 			from `tabGL Entry`
 			where voucher_type='Journal Entry' and voucher_detail_no=%s and posting_date <= %s
@@ -3306,6 +3307,7 @@
 			"item_name": args.item_name or "_Test Item",
 			"description": args.description or "_Test Item",
 			"warehouse": args.warehouse or "_Test Warehouse - _TC",
+			"target_warehouse": args.target_warehouse,
 			"qty": args.qty or 1,
 			"uom": args.uom or "Nos",
 			"stock_uom": args.uom or "Nos",
@@ -3431,6 +3433,34 @@
 	]
 
 
+def create_internal_parties():
+	from erpnext.selling.doctype.customer.test_customer import create_internal_customer
+
+	create_internal_customer(
+		customer_name="_Test Internal Customer",
+		represents_company="_Test Company 1",
+		allowed_to_interact_with="Wind Power LLC",
+	)
+
+	create_internal_customer(
+		customer_name="_Test Internal Customer 2",
+		represents_company="_Test Company with perpetual inventory",
+		allowed_to_interact_with="_Test Company with perpetual inventory",
+	)
+
+	create_internal_supplier(
+		supplier_name="_Test Internal Supplier",
+		represents_company="Wind Power LLC",
+		allowed_to_interact_with="_Test Company 1",
+	)
+
+	create_internal_supplier(
+		supplier_name="_Test Internal Supplier 2",
+		represents_company="_Test Company with perpetual inventory",
+		allowed_to_interact_with="_Test Company with perpetual inventory",
+	)
+
+
 def create_internal_supplier(supplier_name, represents_company, allowed_to_interact_with):
 	if not frappe.db.exists("Supplier", supplier_name):
 		supplier = frappe.get_doc(
@@ -3453,6 +3483,19 @@
 	return supplier_name
 
 
+def setup_accounts():
+	## Create internal transfer account
+	account = create_account(
+		account_name="Unrealized Profit",
+		parent_account="Current Liabilities - TCP1",
+		company="_Test Company with perpetual inventory",
+	)
+
+	frappe.db.set_value(
+		"Company", "_Test Company with perpetual inventory", "unrealized_profit_loss_account", account
+	)
+
+
 def add_taxes(doc):
 	doc.append(
 		"taxes",
diff --git a/erpnext/accounts/doctype/sales_invoice_item/sales_invoice_item.json b/erpnext/accounts/doctype/sales_invoice_item/sales_invoice_item.json
index 4f97b63..a307a6c 100644
--- a/erpnext/accounts/doctype/sales_invoice_item/sales_invoice_item.json
+++ b/erpnext/accounts/doctype/sales_invoice_item/sales_invoice_item.json
@@ -820,6 +820,7 @@
    "label": "Incoming Rate (Costing)",
    "no_copy": 1,
    "options": "Company:company:default_currency",
+   "precision": "6",
    "print_hide": 1
   },
   {
@@ -875,7 +876,7 @@
  "idx": 1,
  "istable": 1,
  "links": [],
- "modified": "2022-09-06 14:17:43.394309",
+ "modified": "2022-10-10 20:57:38.340026",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Sales Invoice Item",
diff --git a/erpnext/controllers/selling_controller.py b/erpnext/controllers/selling_controller.py
index 5e9c069..e8e9076 100644
--- a/erpnext/controllers/selling_controller.py
+++ b/erpnext/controllers/selling_controller.py
@@ -442,11 +442,17 @@
 				# For internal transfers use incoming rate as the valuation rate
 				if self.is_internal_transfer():
 					if d.doctype == "Packed Item":
-						incoming_rate = flt(d.incoming_rate * d.conversion_factor, d.precision("incoming_rate"))
+						incoming_rate = flt(
+							flt(d.incoming_rate, d.precision("incoming_rate")) * d.conversion_factor,
+							d.precision("incoming_rate"),
+						)
 						if d.incoming_rate != incoming_rate:
 							d.incoming_rate = incoming_rate
 					else:
-						rate = flt(d.incoming_rate * d.conversion_factor, d.precision("rate"))
+						rate = flt(
+							flt(d.incoming_rate, d.precision("incoming_rate")) * d.conversion_factor,
+							d.precision("rate"),
+						)
 						if d.rate != rate:
 							d.rate = rate
 							frappe.msgprint(
diff --git a/erpnext/controllers/stock_controller.py b/erpnext/controllers/stock_controller.py
index 9149b4d..98dc586 100644
--- a/erpnext/controllers/stock_controller.py
+++ b/erpnext/controllers/stock_controller.py
@@ -142,13 +142,15 @@
 		warehouse_with_no_account = []
 		precision = self.get_debit_field_precision()
 		for item_row in voucher_details:
-
 			sle_list = sle_map.get(item_row.name)
+			sle_rounding_diff = 0.0
 			if sle_list:
 				for sle in sle_list:
 					if warehouse_account.get(sle.warehouse):
 						# from warehouse account
 
+						sle_rounding_diff += flt(sle.stock_value_difference)
+
 						self.check_expense_account(item_row)
 
 						# expense account/ target_warehouse / source_warehouse
@@ -191,6 +193,46 @@
 					elif sle.warehouse not in warehouse_with_no_account:
 						warehouse_with_no_account.append(sle.warehouse)
 
+			if abs(sle_rounding_diff) > (1.0 / (10**precision)) and self.is_internal_transfer():
+				warehouse_asset_account = ""
+				if self.get("is_internal_customer"):
+					warehouse_asset_account = warehouse_account[item_row.get("target_warehouse")]["account"]
+				elif self.get("is_internal_supplier"):
+					warehouse_asset_account = warehouse_account[item_row.get("warehouse")]["account"]
+
+				expense_account = frappe.db.get_value("Company", self.company, "default_expense_account")
+
+				gl_list.append(
+					self.get_gl_dict(
+						{
+							"account": expense_account,
+							"against": warehouse_asset_account,
+							"cost_center": item_row.cost_center,
+							"project": item_row.project or self.get("project"),
+							"remarks": _("Rounding gain/loss Entry for Stock Transfer"),
+							"debit": sle_rounding_diff,
+							"is_opening": item_row.get("is_opening") or self.get("is_opening") or "No",
+						},
+						warehouse_account[sle.warehouse]["account_currency"],
+						item=item_row,
+					)
+				)
+
+				gl_list.append(
+					self.get_gl_dict(
+						{
+							"account": warehouse_asset_account,
+							"against": expense_account,
+							"cost_center": item_row.cost_center,
+							"remarks": _("Rounding gain/loss Entry for Stock Transfer"),
+							"credit": sle_rounding_diff,
+							"project": item_row.get("project") or self.get("project"),
+							"is_opening": item_row.get("is_opening") or self.get("is_opening") or "No",
+						},
+						item=item_row,
+					)
+				)
+
 		if warehouse_with_no_account:
 			for wh in warehouse_with_no_account:
 				if frappe.db.get_value("Warehouse", wh, "company"):
diff --git a/erpnext/stock/doctype/delivery_note_item/delivery_note_item.json b/erpnext/stock/doctype/delivery_note_item/delivery_note_item.json
index 0911cdb..0a5cbab 100644
--- a/erpnext/stock/doctype/delivery_note_item/delivery_note_item.json
+++ b/erpnext/stock/doctype/delivery_note_item/delivery_note_item.json
@@ -753,6 +753,7 @@
    "fieldtype": "Currency",
    "label": "Incoming Rate",
    "no_copy": 1,
+   "precision": "6",
    "print_hide": 1,
    "read_only": 1
   },
@@ -813,7 +814,7 @@
  "index_web_pages_for_search": 1,
  "istable": 1,
  "links": [],
- "modified": "2022-09-06 14:19:42.876357",
+ "modified": "2022-10-12 03:36:05.344847",
  "modified_by": "Administrator",
  "module": "Stock",
  "name": "Delivery Note Item",
diff --git a/erpnext/stock/doctype/item/test_item.py b/erpnext/stock/doctype/item/test_item.py
index 0c710b0..e1ee938 100644
--- a/erpnext/stock/doctype/item/test_item.py
+++ b/erpnext/stock/doctype/item/test_item.py
@@ -32,7 +32,7 @@
 test_dependencies = ["Warehouse", "Item Group", "Item Tax Template", "Brand", "Item Attribute"]
 
 
-def make_item(item_code=None, properties=None):
+def make_item(item_code=None, properties=None, uoms=None):
 	if not item_code:
 		item_code = frappe.generate_hash(length=16)
 
@@ -56,6 +56,11 @@
 		for item_default in [doc for doc in item.get("item_defaults") if not doc.default_warehouse]:
 			item_default.default_warehouse = "_Test Warehouse - _TC"
 			item_default.company = "_Test Company"
+
+	if uoms:
+		for uom in uoms:
+			item.append("uoms", uom)
+
 	item.insert()
 
 	return item
diff --git a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
index 6269724..dc9f2b2 100644
--- a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
@@ -1,7 +1,6 @@
 # Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and Contributors
 # License: GNU General Public License v3. See license.txt
 
-
 import frappe
 from frappe.tests.utils import FrappeTestCase, change_settings
 from frappe.utils import add_days, cint, cstr, flt, today
@@ -1199,6 +1198,8 @@
 		self.assertEqual(pr1.items[0].rate, 100)
 		pr1.submit()
 
+		self.assertEqual(pr1.is_internal_supplier, 1)
+
 		# Backdated purchase receipt entry, the valuation rate should be updated for DN1 and PR1
 		make_purchase_receipt(
 			item_code=item_doc.name,
@@ -1241,6 +1242,234 @@
 
 		self.assertEqual(query[0].value, 0)
 
+	def test_backdated_transaction_for_internal_transfer_in_trasit_warehouse_for_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"
+
+		from_warehouse = create_warehouse("_Test Internal From Warehouse New", company=company)
+		to_warehouse = create_warehouse("_Test Internal To Warehouse New", company=company)
+		item_doc = create_item("Test Internal Transfer Item")
+
+		target_warehouse = create_warehouse("_Test Internal GIT Warehouse New", company=company)
+
+		make_purchase_receipt(
+			item_code=item_doc.name,
+			company=company,
+			posting_date=add_days(today(), -1),
+			warehouse=from_warehouse,
+			qty=1,
+			rate=100,
+		)
+
+		# Keep stock in advance and make sure that systen won't pick this stock while reposting backdated transaction
+		for i in range(1, 4):
+			make_purchase_receipt(
+				item_code=item_doc.name,
+				company=company,
+				posting_date=add_days(today(), -1 * i),
+				warehouse=target_warehouse,
+				qty=1,
+				rate=320 * i,
+			)
+
+		dn1 = create_delivery_note(
+			item_code=item_doc.name,
+			company=company,
+			customer=customer,
+			cost_center="Main - TCP1",
+			expense_account="Cost of Goods Sold - TCP1",
+			qty=1,
+			rate=500,
+			warehouse=from_warehouse,
+			target_warehouse=target_warehouse,
+		)
+
+		self.assertEqual(dn1.items[0].rate, 100)
+
+		pr1 = make_inter_company_purchase_receipt(dn1.name)
+		pr1.items[0].warehouse = to_warehouse
+		self.assertEqual(pr1.items[0].rate, 100)
+		pr1.submit()
+
+		stk_ledger = frappe.db.get_value(
+			"Stock Ledger Entry",
+			{"voucher_type": "Purchase Receipt", "voucher_no": pr1.name, "warehouse": target_warehouse},
+			["stock_value_difference", "outgoing_rate"],
+			as_dict=True,
+		)
+
+		self.assertEqual(abs(stk_ledger.stock_value_difference), 100)
+		self.assertEqual(stk_ledger.outgoing_rate, 100)
+
+		# Backdated purchase receipt entry, the valuation rate should be updated for DN1 and PR1
+		make_purchase_receipt(
+			item_code=item_doc.name,
+			company=company,
+			posting_date=add_days(today(), -2),
+			warehouse=from_warehouse,
+			qty=1,
+			rate=200,
+		)
+
+		dn_value = frappe.db.get_value(
+			"Stock Ledger Entry",
+			{"voucher_type": "Delivery Note", "voucher_no": dn1.name, "warehouse": target_warehouse},
+			"stock_value_difference",
+		)
+
+		self.assertEqual(abs(dn_value), 200.00)
+
+		pr_value = frappe.db.get_value(
+			"Stock Ledger Entry",
+			{"voucher_type": "Purchase Receipt", "voucher_no": pr1.name, "warehouse": to_warehouse},
+			"stock_value_difference",
+		)
+
+		self.assertEqual(abs(pr_value), 200.00)
+		pr1.load_from_db()
+
+		self.assertEqual(pr1.items[0].valuation_rate, 200)
+		self.assertEqual(pr1.items[0].rate, 100)
+
+		Gl = frappe.qb.DocType("GL Entry")
+
+		query = (
+			frappe.qb.from_(Gl)
+			.select(
+				(fn.Sum(Gl.debit) - fn.Sum(Gl.credit)).as_("value"),
+			)
+			.where((Gl.voucher_type == pr1.doctype) & (Gl.voucher_no == pr1.name))
+		).run(as_dict=True)
+
+		self.assertEqual(query[0].value, 0)
+
+	def test_backdated_transaction_for_internal_transfer_in_trasit_warehouse_for_purchase_invoice(
+		self,
+	):
+		from erpnext.accounts.doctype.purchase_invoice.test_purchase_invoice import (
+			make_purchase_invoice as make_purchase_invoice_for_si,
+		)
+		from erpnext.accounts.doctype.sales_invoice.sales_invoice import (
+			make_inter_company_purchase_invoice,
+		)
+		from erpnext.accounts.doctype.sales_invoice.test_sales_invoice import create_sales_invoice
+
+		prepare_data_for_internal_transfer()
+		customer = "_Test Internal Customer 2"
+		company = "_Test Company with perpetual inventory"
+
+		from_warehouse = create_warehouse("_Test Internal From Warehouse New", company=company)
+		to_warehouse = create_warehouse("_Test Internal To Warehouse New", company=company)
+		item_doc = create_item("Test Internal Transfer Item")
+
+		target_warehouse = create_warehouse("_Test Internal GIT Warehouse New", company=company)
+
+		make_purchase_invoice_for_si(
+			item_code=item_doc.name,
+			company=company,
+			posting_date=add_days(today(), -1),
+			warehouse=from_warehouse,
+			qty=1,
+			update_stock=1,
+			expense_account="Cost of Goods Sold - TCP1",
+			cost_center="Main - TCP1",
+			rate=100,
+		)
+
+		# Keep stock in advance and make sure that systen won't pick this stock while reposting backdated transaction
+		for i in range(1, 4):
+			make_purchase_invoice_for_si(
+				item_code=item_doc.name,
+				company=company,
+				posting_date=add_days(today(), -1 * i),
+				warehouse=target_warehouse,
+				update_stock=1,
+				qty=1,
+				expense_account="Cost of Goods Sold - TCP1",
+				cost_center="Main - TCP1",
+				rate=320 * i,
+			)
+
+		si1 = create_sales_invoice(
+			item_code=item_doc.name,
+			company=company,
+			customer=customer,
+			cost_center="Main - TCP1",
+			income_account="Sales - TCP1",
+			qty=1,
+			rate=500,
+			update_stock=1,
+			warehouse=from_warehouse,
+			target_warehouse=target_warehouse,
+		)
+
+		self.assertEqual(si1.items[0].rate, 100)
+
+		pi1 = make_inter_company_purchase_invoice(si1.name)
+		pi1.items[0].warehouse = to_warehouse
+		self.assertEqual(pi1.items[0].rate, 100)
+		pi1.update_stock = 1
+		pi1.save()
+		pi1.submit()
+
+		stk_ledger = frappe.db.get_value(
+			"Stock Ledger Entry",
+			{"voucher_type": pi1.doctype, "voucher_no": pi1.name, "warehouse": target_warehouse},
+			["stock_value_difference", "outgoing_rate"],
+			as_dict=True,
+		)
+
+		self.assertEqual(abs(stk_ledger.stock_value_difference), 100)
+		self.assertEqual(stk_ledger.outgoing_rate, 100)
+
+		# Backdated purchase receipt entry, the valuation rate should be updated for si1 and pi1
+		make_purchase_receipt(
+			item_code=item_doc.name,
+			company=company,
+			posting_date=add_days(today(), -2),
+			warehouse=from_warehouse,
+			qty=1,
+			rate=200,
+		)
+
+		si_value = frappe.db.get_value(
+			"Stock Ledger Entry",
+			{"voucher_type": si1.doctype, "voucher_no": si1.name, "warehouse": target_warehouse},
+			"stock_value_difference",
+		)
+
+		self.assertEqual(abs(si_value), 200.00)
+
+		pi_value = frappe.db.get_value(
+			"Stock Ledger Entry",
+			{"voucher_type": pi1.doctype, "voucher_no": pi1.name, "warehouse": to_warehouse},
+			"stock_value_difference",
+		)
+
+		self.assertEqual(abs(pi_value), 200.00)
+		pi1.load_from_db()
+
+		self.assertEqual(pi1.items[0].valuation_rate, 200)
+		self.assertEqual(pi1.items[0].rate, 100)
+
+		Gl = frappe.qb.DocType("GL Entry")
+
+		query = (
+			frappe.qb.from_(Gl)
+			.select(
+				(fn.Sum(Gl.debit) - fn.Sum(Gl.credit)).as_("value"),
+			)
+			.where((Gl.voucher_type == pi1.doctype) & (Gl.voucher_no == pi1.name))
+		).run(as_dict=True)
+
+		self.assertEqual(query[0].value, 0)
+
 	def test_batch_expiry_for_purchase_receipt(self):
 		from erpnext.controllers.sales_and_purchase_return import make_return_doc
 
diff --git a/erpnext/stock/doctype/purchase_receipt_item/purchase_receipt_item.json b/erpnext/stock/doctype/purchase_receipt_item/purchase_receipt_item.json
index 39833b5..772736e 100644
--- a/erpnext/stock/doctype/purchase_receipt_item/purchase_receipt_item.json
+++ b/erpnext/stock/doctype/purchase_receipt_item/purchase_receipt_item.json
@@ -744,6 +744,7 @@
    "oldfieldname": "valuation_rate",
    "oldfieldtype": "Currency",
    "options": "Company:company:default_currency",
+   "precision": "6",
    "print_hide": 1,
    "print_width": "80px",
    "read_only": 1,
@@ -999,7 +1000,7 @@
  "idx": 1,
  "istable": 1,
  "links": [],
- "modified": "2022-07-28 19:27:54.880781",
+ "modified": "2022-10-12 03:37:59.516609",
  "modified_by": "Administrator",
  "module": "Stock",
  "name": "Purchase Receipt Item",
diff --git a/erpnext/stock/doctype/stock_ledger_entry/test_stock_ledger_entry.py b/erpnext/stock/doctype/stock_ledger_entry/test_stock_ledger_entry.py
index 1410da5..6c341d9 100644
--- a/erpnext/stock/doctype/stock_ledger_entry/test_stock_ledger_entry.py
+++ b/erpnext/stock/doctype/stock_ledger_entry/test_stock_ledger_entry.py
@@ -1323,13 +1323,15 @@
 		item.save()
 
 
-def create_items():
-	items = [
-		"_Test Item for Reposting",
-		"_Test Finished Item for Reposting",
-		"_Test Subcontracted Item for Reposting",
-		"_Test Bundled Item for Reposting",
-	]
+def create_items(items=None, uoms=None):
+	if not items:
+		items = [
+			"_Test Item for Reposting",
+			"_Test Finished Item for Reposting",
+			"_Test Subcontracted Item for Reposting",
+			"_Test Bundled Item for Reposting",
+		]
+
 	for d in items:
 		properties = {"valuation_method": "FIFO"}
 		if d == "_Test Bundled Item for Reposting":
@@ -1337,7 +1339,7 @@
 		elif d == "_Test Subcontracted Item for Reposting":
 			properties.update({"is_sub_contracted_item": 1})
 
-		make_item(d, properties=properties)
+		make_item(d, properties=properties, uoms=uoms)
 
 	return items
 
diff --git a/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.py b/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.py
index 23e0f1e..d92d0f1 100644
--- a/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.py
+++ b/erpnext/stock/doctype/stock_reconciliation/stock_reconciliation.py
@@ -132,7 +132,9 @@
 					key.append(row.get(field))
 
 			if key in item_warehouse_combinations:
-				self.validation_messages.append(_get_msg(row_num, _("Duplicate entry")))
+				self.validation_messages.append(
+					_get_msg(row_num, _("Same item and warehouse combination already entered."))
+				)
 			else:
 				item_warehouse_combinations.append(key)
 
diff --git a/erpnext/stock/stock_ledger.py b/erpnext/stock/stock_ledger.py
index 9ca40c3..cdf6e89 100644
--- a/erpnext/stock/stock_ledger.py
+++ b/erpnext/stock/stock_ledger.py
@@ -542,6 +542,14 @@
 		if not self.args.get("sle_id"):
 			self.get_dynamic_incoming_outgoing_rate(sle)
 
+		if (
+			sle.voucher_type in ["Purchase Receipt", "Purchase Invoice"]
+			and sle.voucher_detail_no
+			and sle.actual_qty < 0
+			and frappe.get_cached_value(sle.voucher_type, sle.voucher_no, "is_internal_supplier")
+		):
+			sle.outgoing_rate = get_incoming_rate_for_inter_company_transfer(sle)
+
 		if get_serial_nos(sle.serial_no):
 			self.get_serialized_values(sle)
 			self.wh_data.qty_after_transaction += flt(sle.actual_qty)
@@ -589,6 +597,7 @@
 		sle.stock_queue = json.dumps(self.wh_data.stock_queue)
 		sle.stock_value_difference = stock_value_difference
 		sle.doctype = "Stock Ledger Entry"
+
 		frappe.get_doc(sle).db_update()
 
 		if not self.args.get("sle_id"):
@@ -652,22 +661,7 @@
 				and sle.voucher_detail_no
 				and frappe.get_cached_value(sle.voucher_type, sle.voucher_no, "is_internal_supplier")
 			):
-				field = (
-					"delivery_note_item" if sle.voucher_type == "Purchase Receipt" else "sales_invoice_item"
-				)
-				doctype = (
-					"Delivery Note Item" if sle.voucher_type == "Purchase Receipt" else "Sales Invoice Item"
-				)
-				refernce_name = frappe.get_cached_value(
-					sle.voucher_type + " Item", sle.voucher_detail_no, field
-				)
-
-				if refernce_name:
-					rate = frappe.get_cached_value(
-						doctype,
-						refernce_name,
-						"incoming_rate",
-					)
+				rate = get_incoming_rate_for_inter_company_transfer(sle)
 			else:
 				if sle.voucher_type in ("Purchase Receipt", "Purchase Invoice"):
 					rate_field = "valuation_rate"
@@ -748,14 +742,12 @@
 
 	def update_rate_on_purchase_receipt(self, sle, outgoing_rate):
 		if frappe.db.exists(sle.voucher_type + " Item", sle.voucher_detail_no):
-			frappe.db.set_value(
-				sle.voucher_type + " Item",
-				sle.voucher_detail_no,
-				{
-					"base_net_rate": outgoing_rate,
-					"valuation_rate": outgoing_rate,
-				},
-			)
+			if sle.voucher_type in ["Purchase Receipt", "Purchase Invoice"] and frappe.get_cached_value(
+				sle.voucher_type, sle.voucher_no, "is_internal_supplier"
+			):
+				frappe.db.set_value(
+					f"{sle.voucher_type} Item", sle.voucher_detail_no, "valuation_rate", sle.outgoing_rate
+				)
 		else:
 			frappe.db.set_value(
 				"Purchase Receipt Item Supplied", sle.voucher_detail_no, "rate", outgoing_rate
@@ -1546,3 +1538,25 @@
 	if item_code and cint(frappe.db.get_value("Item", item_code, "allow_negative_stock", cache=True)):
 		return True
 	return False
+
+
+def get_incoming_rate_for_inter_company_transfer(sle) -> float:
+	"""
+	For inter company transfer, incoming rate is the average of the outgoing rate
+	"""
+	rate = 0.0
+
+	field = "delivery_note_item" if sle.voucher_type == "Purchase Receipt" else "sales_invoice_item"
+
+	doctype = "Delivery Note Item" if sle.voucher_type == "Purchase Receipt" else "Sales Invoice Item"
+
+	reference_name = frappe.get_cached_value(sle.voucher_type + " Item", sle.voucher_detail_no, field)
+
+	if reference_name:
+		rate = frappe.get_cached_value(
+			doctype,
+			reference_name,
+			"incoming_rate",
+		)
+
+	return rate