diff --git a/erpnext/controllers/selling_controller.py b/erpnext/controllers/selling_controller.py
index 5e9c069b1d..e8e9076975 100644
--- a/erpnext/controllers/selling_controller.py
+++ b/erpnext/controllers/selling_controller.py
@@ -442,11 +442,17 @@ class SellingController(StockController):
 				# 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(