diff --git a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
index 6fac45ea255..6282782ccde 100644
--- a/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
+++ b/erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py
@@ -4590,6 +4590,87 @@ class TestPurchaseReceipt(IntegrationTestCase):
 		for row in gl_entries:
 			self.assertTrue(row.account in ["Stock In Hand - TCP1", account])
 
+	def test_lcv_for_repack_entry(self):
+		from erpnext.stock.doctype.landed_cost_voucher.test_landed_cost_voucher import (
+			create_landed_cost_voucher,
+		)
+		from erpnext.stock.doctype.stock_entry.test_stock_entry import make_stock_entry
+
+		for item in [
+			"Potatoes Raw Material Item",
+			"Fries Finished Goods Item",
+		]:
+			create_item(item)
+
+		pr = make_purchase_receipt(
+			item_code="Potatoes Raw Material Item",
+			warehouse="_Test Warehouse - _TC",
+			qty=100,
+			rate=50,
+		)
+
+		wh1 = create_warehouse("WH A1", company=pr.company)
+		wh2 = create_warehouse("WH A2", company=pr.company)
+
+		ste = make_stock_entry(
+			purpose="Repack",
+			source="_Test Warehouse - _TC",
+			item_code="Potatoes Raw Material Item",
+			qty=100,
+			company=pr.company,
+			do_not_save=1,
+		)
+
+		ste.append(
+			"items",
+			{
+				"item_code": "Fries Finished Goods Item",
+				"qty": 50,
+				"t_warehouse": wh1,
+			},
+		)
+
+		ste.append(
+			"items",
+			{
+				"item_code": "Fries Finished Goods Item",
+				"qty": 50,
+				"t_warehouse": wh2,
+			},
+		)
+
+		ste.insert()
+		ste.submit()
+		ste.reload()
+
+		for row in ste.items:
+			if row.t_warehouse:
+				self.assertEqual(row.valuation_rate, 50)
+
+		sles = frappe.get_all(
+			"Stock Ledger Entry",
+			filters={"voucher_type": ste.doctype, "voucher_no": ste.name, "actual_qty": (">", 0)},
+			pluck="stock_value_difference",
+		)
+
+		self.assertEqual(sles, [2500.0, 2500.0])
+
+		create_landed_cost_voucher("Purchase Receipt", pr.name, pr.company, charges=2000 * -1)
+
+		ste.reload()
+
+		for row in ste.items:
+			if row.t_warehouse:
+				self.assertEqual(row.valuation_rate, 30)
+
+		sles = frappe.get_all(
+			"Stock Ledger Entry",
+			filters={"voucher_type": ste.doctype, "voucher_no": ste.name, "actual_qty": (">", 0)},
+			pluck="stock_value_difference",
+		)
+
+		self.assertEqual(sles, [1500.0, 1500.0])
+
 
 def prepare_data_for_internal_transfer():
 	from erpnext.accounts.doctype.sales_invoice.test_sales_invoice import create_internal_supplier
diff --git a/erpnext/stock/stock_ledger.py b/erpnext/stock/stock_ledger.py
index 2c9e57afecb..6d14290fea0 100644
--- a/erpnext/stock/stock_ledger.py
+++ b/erpnext/stock/stock_ledger.py
@@ -655,10 +655,32 @@ class update_entries_after:
 
 				if sle.dependant_sle_voucher_detail_no:
 					entries_to_fix = self.get_dependent_entries_to_fix(entries_to_fix, sle)
+					if sle.voucher_type == "Stock Entry" and is_repack_entry(sle.voucher_no):
+						# for repack entries, we need to repost both source and target warehouses
+						self.update_distinct_item_warehouses_for_repack(sle)
 
 		if self.exceptions:
 			self.raise_exceptions()
 
+	def update_distinct_item_warehouses_for_repack(self, sle):
+		sles = (
+			frappe.get_all(
+				"Stock Ledger Entry",
+				filters={
+					"voucher_type": "Stock Entry",
+					"voucher_no": sle.voucher_no,
+					"actual_qty": (">", 0),
+					"is_cancelled": 0,
+					"voucher_detail_no": ("!=", sle.dependant_sle_voucher_detail_no),
+				},
+				fields=["*"],
+			)
+			or []
+		)
+
+		for dependant_sle in sles:
+			self.update_distinct_item_warehouses(dependant_sle)
+
 	def has_stock_reco_with_serial_batch(self, sle):
 		if (
 			sle.voucher_type == "Stock Reconciliation"
@@ -1162,7 +1184,11 @@ class update_entries_after:
 
 	def get_dynamic_incoming_outgoing_rate(self, sle):
 		# Get updated incoming/outgoing rate from transaction
-		if sle.recalculate_rate or self.has_landed_cost_based_on_pi(sle):
+		if (
+			sle.recalculate_rate
+			or self.has_landed_cost_based_on_pi(sle)
+			or (sle.voucher_type == "Stock Entry" and sle.actual_qty > 0 and is_repack_entry(sle.voucher_no))
+		):
 			rate = self.get_incoming_outgoing_rate_from_transaction(sle)
 
 			if flt(sle.actual_qty) >= 0:
@@ -2428,3 +2454,8 @@ def get_incoming_rate_for_serial_and_batch(item_code, row, sn_obj, company):
 			incoming_rate = abs(flt(sn_obj.batch_avg_rate.get(row.batch_no)))
 
 	return incoming_rate
+
+
+@frappe.request_cache
+def is_repack_entry(stock_entry_id):
+	return frappe.get_cached_value("Stock Entry", stock_entry_id, "purpose") == "Repack"