diff --git a/erpnext/assets/doctype/asset_movement/asset_movement.py b/erpnext/assets/doctype/asset_movement/asset_movement.py
index 25a06e463bb..c3248563440 100644
--- a/erpnext/assets/doctype/asset_movement/asset_movement.py
+++ b/erpnext/assets/doctype/asset_movement/asset_movement.py
@@ -5,7 +5,7 @@
 import frappe
 from frappe import _
 from frappe.model.document import Document
-from frappe.utils import cstr, get_link_to_form
+from frappe.utils import cstr, get_datetime, get_link_to_form
 
 from erpnext.assets.doctype.asset_activity.asset_activity import add_asset_activity
 
@@ -34,6 +34,7 @@ class AssetMovement(Document):
 		for d in self.assets:
 			self.validate_asset(d)
 			self.validate_movement(d)
+			self.validate_transaction_date(d)
 
 	def validate_asset(self, d):
 		status, company = frappe.db.get_value("Asset", d.asset, ["status", "company"])
@@ -51,6 +52,18 @@ class AssetMovement(Document):
 		else:
 			self.validate_employee(d)
 
+	def validate_transaction_date(self, d):
+		previous_movement_date = frappe.db.get_value(
+			"Asset Movement",
+			[["Asset Movement Item", "asset", "=", d.asset], ["docstatus", "=", 1]],
+			"transaction_date",
+			order_by="transaction_date desc",
+		)
+		if previous_movement_date and get_datetime(previous_movement_date) > get_datetime(
+			self.transaction_date
+		):
+			frappe.throw(_("Transaction date can't be earlier than previous movement date"))
+
 	def validate_location_and_employee(self, d):
 		self.validate_location(d)
 		self.validate_employee(d)
diff --git a/erpnext/assets/doctype/asset_movement/test_asset_movement.py b/erpnext/assets/doctype/asset_movement/test_asset_movement.py
index 29d9ba72328..33eaa7e7e4c 100644
--- a/erpnext/assets/doctype/asset_movement/test_asset_movement.py
+++ b/erpnext/assets/doctype/asset_movement/test_asset_movement.py
@@ -3,9 +3,9 @@
 
 import frappe
 from frappe.tests import IntegrationTestCase
-from frappe.utils import now
+from frappe.utils import add_days, now
 
-from erpnext.assets.doctype.asset.test_asset import create_asset_data
+from erpnext.assets.doctype.asset.test_asset import create_asset, create_asset_data
 from erpnext.setup.doctype.employee.test_employee import make_employee
 from erpnext.stock.doctype.purchase_receipt.test_purchase_receipt import make_purchase_receipt
 
@@ -146,6 +146,33 @@ class TestAssetMovement(IntegrationTestCase):
 		movement1.cancel()
 		self.assertEqual(frappe.db.get_value("Asset", asset.name, "location"), "Test Location")
 
+	def test_movement_transaction_date(self):
+		asset = create_asset(item_code="Macbook Pro", do_not_save=1)
+		asset.save().submit()
+
+		if not frappe.db.exists("Location", "Test Location 2"):
+			frappe.get_doc({"doctype": "Location", "location_name": "Test Location 2"}).insert()
+
+		asset_creation_date = frappe.db.get_value(
+			"Asset Movement",
+			[["Asset Movement Item", "asset", "=", asset.name], ["docstatus", "=", 1]],
+			"transaction_date",
+		)
+		asset_movement = create_asset_movement(
+			purpose="Transfer",
+			company=asset.company,
+			assets=[
+				{
+					"asset": asset.name,
+					"source_location": "Test Location",
+					"target_location": "Test Location 2",
+				}
+			],
+			transaction_date=add_days(asset_creation_date, -1),
+			do_not_save=True,
+		)
+		self.assertRaises(frappe.ValidationError, asset_movement.save)
+
 
 def create_asset_movement(**args):
 	args = frappe._dict(args)
@@ -164,9 +191,10 @@ def create_asset_movement(**args):
 			"reference_name": args.reference_name,
 		}
 	)
-
-	movement.insert()
-	movement.submit()
+	if not args.do_not_save:
+		movement.insert(ignore_if_duplicate=True)
+		if not args.do_not_submit:
+			movement.submit()
 
 	return movement