diff --git a/erpnext/controllers/buying_controller.py b/erpnext/controllers/buying_controller.py
index 9719989bb87..f43332a3805 100644
--- a/erpnext/controllers/buying_controller.py
+++ b/erpnext/controllers/buying_controller.py
@@ -356,14 +356,14 @@ class BuyingController(SubcontractingController):
 		if not self.is_internal_transfer():
 			return
 
+		self.set_sales_incoming_rate_for_internal_transfer()
+
 		allow_at_arms_length_price = frappe.get_cached_value(
 			"Stock Settings", None, "allow_internal_transfer_at_arms_length_price"
 		)
 		if allow_at_arms_length_price:
 			return
 
-		self.set_sales_incoming_rate_for_internal_transfer()
-
 		for d in self.get("items"):
 			d.discount_percentage = 0.0
 			d.discount_amount = 0.0