diff --git a/erpnext/accounts/doctype/account/account.py b/erpnext/accounts/doctype/account/account.py
index 4098084a802..2f1ddb2f96f 100644
--- a/erpnext/accounts/doctype/account/account.py
+++ b/erpnext/accounts/doctype/account/account.py
@@ -502,7 +502,7 @@ def update_account_number(name, account_name, account_number=None, from_descenda
 				"name",
 			)
 
-			if old_name:
+			if old_name and not from_descendant:
 				# same account in parent company exists
 				allow_child_account_creation = _("Allow Account Creation Against Child Company")