diff --git a/.github/workflows/server-tests-mariadb.yml b/.github/workflows/server-tests-mariadb.yml
index cdb68499ffd57..9492405b53686 100644
--- a/.github/workflows/server-tests-mariadb.yml
+++ b/.github/workflows/server-tests-mariadb.yml
@@ -112,7 +112,7 @@ jobs:
           FRAPPE_BRANCH: ${{ github.event.inputs.branch }}
 
       - name: Run Tests
-        run: cd ~/frappe-bench/ && bench --site test_site run-parallel-tests --app erpnext --use-orchestrator --with-coverage
+        run: cd ~/frappe-bench/ && bench --site test_site run-tests --app erpnext --doctype "BOM"
         env:
           TYPE: server
           CI_BUILD_ID: ${{ github.run_id }}
diff --git a/erpnext/manufacturing/doctype/bom/bom.py b/erpnext/manufacturing/doctype/bom/bom.py
index 3e2a2d13f1809..e92c445ace2c6 100644
--- a/erpnext/manufacturing/doctype/bom/bom.py
+++ b/erpnext/manufacturing/doctype/bom/bom.py
@@ -365,7 +365,6 @@ def get_rm_rate(self, arg):
 					rate = flt(self.get_bom_unitcost(arg["bom_no"])) * (arg.get("conversion_factor") or 1)
 				else:
 					rate = get_bom_item_rate(arg, self)
-
 					if not rate:
 						if self.rm_cost_as_per == "Price List":
 							frappe.msgprint(
@@ -378,7 +377,14 @@ def get_rm_rate(self, arg):
 							frappe.msgprint(
 								_("{0} not found for item {1}").format(self.rm_cost_as_per, arg["item_code"]), alert=True
 							)
-		return flt(rate) * flt(self.plc_conversion_rate or 1) / (self.conversion_rate or 1)
+
+		# Consider plc_conversion_rate value only if cost is fetched as per Price List
+		if self.rm_cost_as_per == "Price List":
+			plc_conversion_rate = self.plc_conversion_rate or 1
+		else:
+			plc_conversion_rate = 1
+
+		return flt(rate) * flt(plc_conversion_rate) / (self.conversion_rate or 1)
 
 	@frappe.whitelist()
 	def update_cost(self, update_parent=True, from_child_bom=False, update_hour_rate=True, save=True):
@@ -652,7 +658,6 @@ def calculate_rm_cost(self, save=False):
 					"sourced_by_supplier": d.sourced_by_supplier,
 				}
 			)
-
 			d.base_rate = flt(d.rate) * flt(self.conversion_rate)
 			d.amount = flt(d.rate, d.precision("rate")) * flt(d.qty, d.precision("qty"))
 			d.base_amount = d.amount * flt(self.conversion_rate)
diff --git a/erpnext/manufacturing/doctype/bom/test_bom.py b/erpnext/manufacturing/doctype/bom/test_bom.py
index f2731ec5ef792..5343c4129b052 100644
--- a/erpnext/manufacturing/doctype/bom/test_bom.py
+++ b/erpnext/manufacturing/doctype/bom/test_bom.py
@@ -71,16 +71,23 @@ def _get_default_bom_in_item():
 
 	def test_update_bom_cost_in_all_boms(self):
 		# get current rate for '_Test Item 2'
-		rm_rate = frappe.db.sql(
-			"""select rate from `tabBOM Item`
-			where parent='BOM-_Test Item Home Desktop Manufactured-001'
-			and item_code='_Test Item 2' and docstatus=1 and parenttype='BOM'"""
+		bom_rates = frappe.db.get_values(
+			"BOM Item",
+			{
+				"parent": "BOM-_Test Item Home Desktop Manufactured-001",
+				"item_code": "_Test Item 2",
+				"docstatus": 1,
+			},
+			fieldname=["rate", "base_rate"],
+			as_dict=True,
 		)
-		rm_rate = rm_rate[0][0] if rm_rate else 0
+		rm_base_rate = bom_rates[0].get("base_rate") if bom_rates else 0
+		rm_rate = bom_rates[0].get("rate") if bom_rates else 0
+		print("rm_rate", rm_base_rate, rm_rate)
 
 		# Reset item valuation rate
-		reset_item_valuation_rate(item_code="_Test Item 2", qty=200, rate=rm_rate + 10)
-
+		reset_item_valuation_rate(item_code="_Test Item 2", qty=200, rate=rm_base_rate + 10)
+		print(frappe.db.get_all("Bin", {"item_code": "_Test Item 2"}, ["*"]))
 		# update cost of all BOMs based on latest valuation rate
 		update_cost_in_all_boms_in_test()
 
@@ -90,7 +97,7 @@ def test_update_bom_cost_in_all_boms(self):
 			where item_code='_Test Item 2' and docstatus=1 and parenttype='BOM'""",
 			as_dict=1,
 		):
-			self.assertEqual(d.rate, rm_rate + 10)
+			self.assertEqual(flt(d.rate, 2), flt(rm_rate, 2) + 10)
 
 	def test_bom_cost(self):
 		bom = frappe.copy_doc(test_records[2])