diff --git a/erpnext/stock/doctype/item/item.py b/erpnext/stock/doctype/item/item.py
index 003e0d4d3a0..c07ea6cdac1 100644
--- a/erpnext/stock/doctype/item/item.py
+++ b/erpnext/stock/doctype/item/item.py
@@ -970,6 +970,11 @@ class Item(Document):
 		changed_fields = [
 			field for field in restricted_fields if cstr(self.get(field)) != cstr(values.get(field))
 		]
+
+		# Allow to change valuation method from FIFO to Moving Average not vice versa
+		if self.valuation_method == "Moving Average" and "valuation_method" in changed_fields:
+			changed_fields.remove("valuation_method")
+
 		if not changed_fields:
 			return