diff --git a/erpnext/hr/doctype/leave_policy_assignment/leave_policy_assignment.py b/erpnext/hr/doctype/leave_policy_assignment/leave_policy_assignment.py
index c79216a275d..0ae368f9df4 100644
--- a/erpnext/hr/doctype/leave_policy_assignment/leave_policy_assignment.py
+++ b/erpnext/hr/doctype/leave_policy_assignment/leave_policy_assignment.py
@@ -8,8 +8,12 @@ from math import ceil
 import frappe
 from frappe import _, bold
 from frappe.model.document import Document
+<<<<<<< HEAD
 from frappe.utils import date_diff, flt, formatdate, get_datetime, getdate
 from six import string_types
+=======
+from frappe.utils import date_diff, flt, formatdate, get_datetime, get_last_day, getdate
+>>>>>>> 25c7f850b1 (fix: earned leaves not allocated if assignment is created on month-end)
 
 
 class LeavePolicyAssignment(Document):
@@ -109,8 +113,8 @@ class LeavePolicyAssignment(Document):
 	def get_leaves_for_passed_months(self, leave_type, new_leaves_allocated, leave_type_details, date_of_joining):
 		from erpnext.hr.utils import get_monthly_earned_leave
 
-		current_month = get_datetime().month
-		current_year = get_datetime().year
+		current_month = get_datetime(frappe.flags.current_date).month or get_datetime().month
+		current_year = get_datetime(frappe.flags.current_date).year or get_datetime().year
 
 		from_date = frappe.db.get_value("Leave Period", self.leave_period, "from_date")
 		if getdate(date_of_joining) > getdate(from_date):
@@ -120,10 +124,14 @@ class LeavePolicyAssignment(Document):
 		from_date_year = get_datetime(from_date).year
 
 		months_passed = 0
+
 		if current_year == from_date_year and current_month > from_date_month:
 			months_passed = current_month - from_date_month
+			months_passed = add_current_month_if_applicable(months_passed)
+
 		elif current_year > from_date_year:
 			months_passed = (12 - from_date_month) + current_month
+			months_passed = add_current_month_if_applicable(months_passed)
 
 		if months_passed > 0:
 			monthly_earned_leave = get_monthly_earned_leave(new_leaves_allocated,
@@ -135,6 +143,17 @@ class LeavePolicyAssignment(Document):
 		return new_leaves_allocated
 
 
+def add_current_month_if_applicable(months_passed):
+	date = getdate(frappe.flags.current_date) or getdate()
+	last_day_of_month = get_last_day(date)
+
+	# if its the last day of the month, then that month should also be considered
+	if last_day_of_month == date:
+		months_passed += 1
+
+	return months_passed
+
+
 @frappe.whitelist()
 def create_assignment_for_multiple_employees(employees, data):
 
diff --git a/erpnext/hr/utils.py b/erpnext/hr/utils.py
index 0b2f99c358e..6cf7df371e7 100644
--- a/erpnext/hr/utils.py
+++ b/erpnext/hr/utils.py
@@ -393,9 +393,12 @@ def update_previous_leave_allocation(allocation, annual_allocation, e_leave_type
 			new_allocation = e_leave_type.max_leaves_allowed
 
 		if new_allocation != allocation.total_leaves_allocated:
-			allocation.db_set("total_leaves_allocated", new_allocation, update_modified=False)
 			today_date = today()
-			create_additional_leave_ledger_entry(allocation, earned_leaves, today_date)
+
+			if not is_earned_leave_already_allocated(allocation, annual_allocation):
+				allocation.db_set("total_leaves_allocated", new_allocation, update_modified=False)
+				create_additional_leave_ledger_entry(allocation, earned_leaves, today_date)
+
 
 def get_monthly_earned_leave(annual_leaves, frequency, rounding):
 	earned_leaves = 0.0
@@ -413,6 +416,21 @@ def get_monthly_earned_leave(annual_leaves, frequency, rounding):
 	return earned_leaves
 
 
+def is_earned_leave_already_allocated(allocation, annual_allocation):
+	from erpnext.hr.doctype.leave_policy_assignment.leave_policy_assignment import get_leave_type_details
+
+	leave_type_details = get_leave_type_details()
+	date_of_joining = frappe.db.get_value("Employee", allocation.employee, "date_of_joining")
+
+	assignment = frappe.get_doc("Leave Policy Assignment", allocation.leave_policy_assignment)
+	leaves_for_passed_months = assignment.get_leaves_for_passed_months(allocation.leave_type,
+		annual_allocation, leave_type_details, date_of_joining)
+
+	if allocation.total_leaves_allocated >= leaves_for_passed_months:
+		return True
+	return False
+
+
 def get_leave_allocations(date, leave_type):
 	return frappe.db.sql("""select name, employee, from_date, to_date, leave_policy_assignment, leave_policy
 		from `tabLeave Allocation`