diff --git a/erpnext/stock/doctype/item/item.js b/erpnext/stock/doctype/item/item.js
index 675d49aab22..a764a006b0c 100644
--- a/erpnext/stock/doctype/item/item.js
+++ b/erpnext/stock/doctype/item/item.js
@@ -7,6 +7,35 @@ const SALES_DOCTYPES = ["Quotation", "Sales Order", "Delivery Note", "Sales Invo
 const PURCHASE_DOCTYPES = ["Purchase Order", "Purchase Receipt", "Purchase Invoice"];
 
 frappe.ui.form.on("Item", {
+	valuation_method(frm) {
+		if (!frm.is_new() && frm.doc.valuation_method === "Moving Average") {
+			let stock_exists = frm.doc.__onload && frm.doc.__onload.stock_exists ? 1 : 0;
+			let current_valuation_method = frm.doc.__onload.current_valuation_method;
+
+			if (stock_exists && current_valuation_method !== frm.doc.valuation_method) {
+				let msg = __(
+					"Changing the valuation method to Moving Average will affect new transactions. If backdated entries are added, earlier FIFO-based entries will be reposted, which may change closing balances."
+				);
+				msg += "<br>";
+				msg += __(
+					"Also you can't switch back to FIFO after setting the valuation method to Moving Average for this item."
+				);
+				msg += "<br>";
+				msg += __("Do you want to change valuation method?");
+
+				frappe.confirm(
+					msg,
+					() => {
+						frm.set_value("valuation_method", "Moving Average");
+					},
+					() => {
+						frm.set_value("valuation_method", current_valuation_method);
+					}
+				);
+			}
+		}
+	},
+
 	setup: function (frm) {
 		frm.add_fetch("attribute", "numeric_values", "numeric_values");
 		frm.add_fetch("attribute", "from_range", "from_range");
diff --git a/erpnext/stock/doctype/item/item.py b/erpnext/stock/doctype/item/item.py
index 25d2e5ec614..fe40f748646 100644
--- a/erpnext/stock/doctype/item/item.py
+++ b/erpnext/stock/doctype/item/item.py
@@ -33,6 +33,7 @@ from erpnext.controllers.item_variant import (
 	validate_item_variant_attributes,
 )
 from erpnext.stock.doctype.item_default.item_default import ItemDefault
+from erpnext.stock.utils import get_valuation_method
 
 
 class DuplicateReorderRows(frappe.ValidationError):
@@ -153,6 +154,7 @@ class Item(Document):
 	def onload(self):
 		self.set_onload("stock_exists", self.stock_ledger_created())
 		self.set_onload("asset_naming_series", get_asset_naming_series())
+		self.set_onload("current_valuation_method", get_valuation_method(self.name))
 
 	def autoname(self):
 		if frappe.db.get_default("item_naming_by") == "Naming Series":