diff --git a/erpnext/stock/stock_ledger.py b/erpnext/stock/stock_ledger.py
index 55e30258044..be351b195e2 100644
--- a/erpnext/stock/stock_ledger.py
+++ b/erpnext/stock/stock_ledger.py
@@ -2377,6 +2377,7 @@ 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
+	lcv_rate = 0.0
 
 	field = "delivery_note_item" if sle.voucher_type == "Purchase Receipt" else "sales_invoice_item"
 
@@ -2391,7 +2392,15 @@ def get_incoming_rate_for_inter_company_transfer(sle) -> float:
 			"incoming_rate",
 		)
 
-	return rate
+	# add lcv amount in incoming_rate
+	lcv_amount = frappe.db.get_value(
+		f"{sle.voucher_type} Item", sle.voucher_detail_no, "landed_cost_voucher_amount"
+	)
+
+	if lcv_amount:
+		lcv_rate = flt(lcv_amount / abs(sle.actual_qty))
+
+	return rate + lcv_rate
 
 
 def is_internal_transfer(sle):