diff --git a/erpnext/assets/doctype/asset/asset.py b/erpnext/assets/doctype/asset/asset.py
index ce894eb00d9..ddb09c1f44b 100644
--- a/erpnext/assets/doctype/asset/asset.py
+++ b/erpnext/assets/doctype/asset/asset.py
@@ -96,11 +96,14 @@ class Asset(AccountsController):
 					"Asset Depreciation Schedules created:<br>{0}<br><br>Please check, edit if needed, and submit the Asset."
 				).format(asset_depr_schedules_links)
 			)
-		if not frappe.db.exists(
-			{
-				"doctype": "Asset Activity",
-				"asset": self.name,
-			}
+		if (
+			not frappe.db.exists(
+				{
+					"doctype": "Asset Activity",
+					"asset": self.name,
+				}
+			)
+			and not self.flags.asset_created_via_asset_capitalization
 		):
 			add_asset_activity(self.name, _("Asset created"))
 
diff --git a/erpnext/assets/doctype/asset_capitalization/asset_capitalization.py b/erpnext/assets/doctype/asset_capitalization/asset_capitalization.py
index 324b7392a8b..0bf2fbb14b6 100644
--- a/erpnext/assets/doctype/asset_capitalization/asset_capitalization.py
+++ b/erpnext/assets/doctype/asset_capitalization/asset_capitalization.py
@@ -509,6 +509,7 @@ class AssetCapitalization(StockController):
 		asset_doc.gross_purchase_amount = total_target_asset_value
 		asset_doc.purchase_receipt_amount = total_target_asset_value
 		asset_doc.flags.ignore_validate = True
+		asset_doc.flags.asset_created_via_asset_capitalization = True
 		asset_doc.insert()
 
 		self.target_asset = asset_doc.name