diff --git a/erpnext/stock/doctype/item/item.js b/erpnext/stock/doctype/item/item.js
index 5bb0061..d3d4bcc 100644
--- a/erpnext/stock/doctype/item/item.js
+++ b/erpnext/stock/doctype/item/item.js
@@ -40,8 +40,9 @@
 
 		// make sensitive fields(has_serial_no, is_stock_item, valuation_method)
 		// read only if any stock ledger entry exists
-
-		erpnext.item.make_dashboard(frm);
+		if(!frm.doc.is_fixed_asset) {
+			erpnext.item.make_dashboard(frm);
+		}
 
 		// clear intro
 		frm.set_intro();
@@ -76,7 +77,8 @@
 
 		erpnext.item.toggle_attributes(frm);
 
-
+		frm.toggle_enable("is_fixed_asset", !frm.doc.is_stock_item &&
+			((frm.doc.__onload && frm.doc.__onload.asset_exists) ? false : true));
 	},
 
 	validate: function(frm){
@@ -86,6 +88,16 @@
 	image: function(frm) {
 		refresh_field("image_view");
 	},
+	
+	is_fixed_asset: function(frm) {
+		if (frm.doc.is_fixed_asset) {
+			frm.set_value("is_stock_item", 0);
+		}
+	},
+	
+	is_stock_item: function(frm) {
+		frm.toggle_enable("is_fixed_asset", !frm.doc.is_stock_item);
+	},
 
 	page_name: frappe.utils.warn_page_name_change,
 
diff --git a/erpnext/stock/doctype/item/item.py b/erpnext/stock/doctype/item/item.py
index 99d7e3f..355503e 100644
--- a/erpnext/stock/doctype/item/item.py
+++ b/erpnext/stock/doctype/item/item.py
@@ -28,6 +28,9 @@
 	def onload(self):
 		super(Item, self).onload()
 		self.set_onload('sle_exists', self.check_if_sle_exists())
+		if self.is_fixed_asset:
+			asset = frappe.db.get_all("Asset", filters={"item_code": self.name, "docstatus": 1}, limit=1)
+			self.set_onload("asset_exists", True if asset else False)
 
 	def autoname(self):
 		if frappe.db.get_default("item_naming_by")=="Naming Series":
@@ -450,8 +453,8 @@
 
 	def cant_change(self):
 		if not self.get("__islocal"):
-			vals = frappe.db.get_value("Item", self.name,
-				["has_serial_no", "is_stock_item", "valuation_method", "has_batch_no"], as_dict=True)
+			vals = frappe.db.get_value("Item", self.name, ["has_serial_no", "is_stock_item", 
+				"valuation_method", "has_batch_no", "is_fixed_asset"], as_dict=True)
 
 			if vals and ((self.is_stock_item != vals.is_stock_item) or
 				vals.has_serial_no != self.has_serial_no or
@@ -460,6 +463,11 @@
 					if self.check_if_linked_document_exists():
 						frappe.throw(_("As there are existing transactions for this item, \
 							you can not change the values of 'Has Serial No', 'Has Batch No', 'Is Stock Item' and 'Valuation Method'"))
+							
+			if vals and not self.is_fixed_asset and self.is_fixed_asset != vals.is_fixed_asset:
+				asset = frappe.db.get_all("Asset", filters={"item_code": self.name, "docstatus": 1}, limit=1)
+				if asset:
+					frappe.throw(_('"Is Fixed Asset" cannot be unchecked, as Asset record exists against the item'))
 
 	def check_if_linked_document_exists(self):
 		for doctype in ("Sales Order Item", "Delivery Note Item", "Sales Invoice Item",