diff --git a/erpnext/buying/utils.py b/erpnext/buying/utils.py
index cf815835553c6cc24e83cc35f85b4a8c54abebed..b8f8ade233f368d190f1b1baa1c6a1b925007c75 100644
--- a/erpnext/buying/utils.py
+++ b/erpnext/buying/utils.py
@@ -15,6 +15,9 @@ 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 7ef86fce3519e2c76326c5cfa533e22807aa816f..4432167f8e4e73c1751aa327600b352e4d41b071 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 6827c0c9a4de84f6633593090fbd33cea5ca0cb2..94eb6d3005ff73327370af5bb8885bab7456f4c0 100644
--- a/erpnext/stock/get_item_details.py
+++ b/erpnext/stock/get_item_details.py
@@ -855,6 +855,9 @@ 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)
 
@@ -868,7 +871,11 @@ 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))