diff --git a/erpnext/stock/doctype/item/item.py b/erpnext/stock/doctype/item/item.py
index 7400a34b3f2..ffb6953122f 100644
--- a/erpnext/stock/doctype/item/item.py
+++ b/erpnext/stock/doctype/item/item.py
@@ -306,7 +306,7 @@ class Item(Document):
 			if self.stock_ledger_created():
 				frappe.throw(_("Cannot be a fixed asset item as Stock Ledger is created."))
 
-		if not self.is_fixed_asset:
+		if not self.is_fixed_asset and not self.is_new():
 			asset = frappe.db.get_all("Asset", filters={"item_code": self.name, "docstatus": 1}, limit=1)
 			if asset:
 				frappe.throw(