diff --git a/erpnext/stock/report/item_prices/test_item_prices.py b/erpnext/stock/report/item_prices/test_item_prices.py
new file mode 100644
index 00000000000..49e36c0429a
--- /dev/null
+++ b/erpnext/stock/report/item_prices/test_item_prices.py
@@ -0,0 +1,99 @@
+# Copyright (c) 2026, Frappe Technologies Pvt. Ltd. and Contributors
+# See license.txt
+
+import frappe
+
+from erpnext.stock.doctype.item.test_item import make_item
+from erpnext.stock.doctype.purchase_receipt.test_purchase_receipt import make_purchase_receipt
+from erpnext.stock.doctype.stock_entry.stock_entry_utils import make_stock_entry
+from erpnext.stock.report.item_prices.item_prices import execute
+from erpnext.tests.utils import ERPNextTestSuite
+
+
+class TestItemPrices(ERPNextTestSuite):
+	"""Correctness tests for the Item Prices report."""
+
+	def run_report(self, **extra):
+		filters = frappe._dict({"items": "Enabled Items only", **extra})
+		return execute(filters)[:2]
+
+	# The report returns string-format columns ("Label:fieldtype:width"); resolve positions
+	# by label so the tests self-correct if the column order changes.
+	@staticmethod
+	def labels(columns):
+		return [c.split(":")[0] if isinstance(c, str) else c.get("label") for c in columns]
+
+	def row_for(self, columns, data, item_code):
+		item_idx = self.labels(columns).index("Item")
+		for row in data:
+			if row[item_idx] == item_code:
+				return row
+		self.fail(f"No report row found for item {item_code}")
+		return None
+
+	def cell(self, columns, row, label):
+		return row[self.labels(columns).index(label)]
+
+	def test_item_selling_price_listed(self):
+		"""A Standard Selling Item Price shows up in the Sales Price List column."""
+		item = "_Test Item"
+		frappe.get_doc(
+			{
+				"doctype": "Item Price",
+				"item_code": item,
+				"price_list": "Standard Selling",
+				"price_list_rate": 250,
+			}
+		).insert()
+
+		columns, data = self.run_report()
+		row = self.row_for(columns, data, item)
+		self.assertIn("250.0", self.cell(columns, row, "Sales Price List"))
+		self.assertIn("Standard Selling", self.cell(columns, row, "Sales Price List"))
+		# A selling price must not leak into the buying column.
+		self.assertNotIn("250.0", self.cell(columns, row, "Purchase Price List") or "")
+		self.assertNotIn("Standard Selling", self.cell(columns, row, "Purchase Price List") or "")
+
+	def test_item_buying_price_listed(self):
+		"""A Standard Buying Item Price shows up in the Purchase Price List column."""
+		item = "_Test Item 2"
+		frappe.get_doc(
+			{
+				"doctype": "Item Price",
+				"item_code": item,
+				"price_list": "Standard Buying",
+				"price_list_rate": 175,
+			}
+		).insert()
+
+		columns, data = self.run_report()
+		row = self.row_for(columns, data, item)
+		self.assertIn("175.0", self.cell(columns, row, "Purchase Price List"))
+		self.assertIn("Standard Buying", self.cell(columns, row, "Purchase Price List"))
+		# A buying price must not leak into the selling column.
+		self.assertNotIn("175.0", self.cell(columns, row, "Sales Price List") or "")
+		self.assertNotIn("Standard Buying", self.cell(columns, row, "Sales Price List") or "")
+
+	def test_last_purchase_rate_from_receipt(self):
+		"""The latest purchase rate (from a Purchase Receipt) shows in the Last Purchase Rate column."""
+		# a fresh item has no other committed purchase records, so it is the only (and latest) row
+		item = make_item(properties={"is_stock_item": 1, "is_purchase_item": 1}).name
+		make_purchase_receipt(
+			item_code=item, qty=5, rate=500, company="_Test Company", posting_date="2026-06-01"
+		)
+
+		columns, data = self.run_report()
+		row = self.row_for(columns, data, item)
+		self.assertEqual(self.cell(columns, row, "Last Purchase Rate"), 500)
+
+	def test_valuation_rate_from_stock(self):
+		"""The Bin valuation rate shows in the Valuation Rate column."""
+		# a fresh item has no other committed bins, so its average valuation is exactly this receipt's rate
+		item = make_item(properties={"is_stock_item": 1}).name
+		make_stock_entry(
+			item_code=item, to_warehouse="Stores - _TC", qty=10, rate=250, posting_date="2026-06-01"
+		)
+
+		columns, data = self.run_report()
+		row = self.row_for(columns, data, item)
+		self.assertEqual(self.cell(columns, row, "Valuation Rate"), 250)