diff --git a/erpnext/buying/utils.py b/erpnext/buying/utils.py
index 163a2ac0b57ef6fbc5cb8aef26658ce193c48aa9..918cb9b7c1fb13d7dcaace19ae586a696db02fee 100644
--- a/erpnext/buying/utils.py
+++ b/erpnext/buying/utils.py
@@ -14,6 +14,9 @@ def update_last_purchase_rate(doc, is_submit) -> None:
 	"""updates last_purchase_rate in item table for each item"""
 	import frappe.utils
 
+	if doc.get("is_internal_supplier"):
+		return
+
 	this_purchase_date = getdate(doc.get("posting_date") or doc.get("transaction_date"))
 
 	for d in doc.get("items"):
diff --git a/erpnext/public/js/controllers/transaction.js b/erpnext/public/js/controllers/transaction.js
index 16f1853015462d4ef36e7c50eb633661643b118c..e1d81e6b494020022a8d41b1eb02136d5e715c32 100644
--- a/erpnext/public/js/controllers/transaction.js
+++ b/erpnext/public/js/controllers/transaction.js
@@ -561,6 +561,8 @@ erpnext.TransactionController = class TransactionController extends erpnext.taxe
 							quotation_to: me.frm.doc.quotation_to,
 							supplier: me.frm.doc.supplier,
 							currency: me.frm.doc.currency,
+							is_internal_supplier: me.frm.doc.is_internal_supplier,
+							is_internal_customer: me.frm.doc.is_internal_customer,
 							update_stock: update_stock,
 							conversion_rate: me.frm.doc.conversion_rate,
 							price_list: me.frm.doc.selling_price_list || me.frm.doc.buying_price_list,
@@ -1683,7 +1685,9 @@ erpnext.TransactionController = class TransactionController extends erpnext.taxe
 			"update_stock": ['Sales Invoice', 'Purchase Invoice'].includes(me.frm.doc.doctype) ? cint(me.frm.doc.update_stock) : 0,
 			"conversion_factor": me.frm.doc.conversion_factor,
 			"pos_profile": me.frm.doc.doctype == 'Sales Invoice' ? me.frm.doc.pos_profile : '',
-			"coupon_code": me.frm.doc.coupon_code
+			"coupon_code": me.frm.doc.coupon_code,
+			"is_internal_supplier": me.frm.doc.is_internal_supplier,
+			"is_internal_customer": me.frm.doc.is_internal_customer,
 		};
 	}
 
diff --git a/erpnext/stock/get_item_details.py b/erpnext/stock/get_item_details.py
index d6488c314b9738188d02b61ec959ba6a85c4cc09..a654524c27768673747a433dcb6d3050e3d667eb 100644
--- a/erpnext/stock/get_item_details.py
+++ b/erpnext/stock/get_item_details.py
@@ -848,6 +848,9 @@ def get_price_list_rate(args, item_doc, out=None):
 		if price_list_rate is None or frappe.db.get_single_value(
 			"Stock Settings", "update_existing_price_list_rate"
 		):
+			if args.get("is_internal_supplier") or args.get("is_internal_customer"):
+				return out
+
 			if args.price_list and args.rate:
 				insert_item_price(args)
 
@@ -859,7 +862,11 @@ def get_price_list_rate(args, item_doc, out=None):
 		if frappe.db.get_single_value("Buying Settings", "disable_last_purchase_rate"):
 			return out
 
-		if not out.price_list_rate and args.transaction_type == "buying":
+		if (
+			not args.get("is_internal_supplier")
+			and 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, args.name, args.conversion_rate))