diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.py b/erpnext/accounts/doctype/payment_entry/payment_entry.py
index e6403fd..f98cd65 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.py
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.py
@@ -83,7 +83,6 @@
 		self.apply_taxes()
 		self.set_amounts_after_tax()
 		self.clear_unallocated_reference_document_rows()
-		self.validate_payment_against_negative_invoice()
 		self.validate_transaction_reference()
 		self.set_title()
 		self.set_remarks()
@@ -952,35 +951,6 @@
 			self.name,
 		)
 
-	def validate_payment_against_negative_invoice(self):
-		if (self.payment_type != "Pay" or self.party_type != "Customer") and (
-			self.payment_type != "Receive" or self.party_type != "Supplier"
-		):
-			return
-
-		total_negative_outstanding = sum(
-			abs(flt(d.outstanding_amount)) for d in self.get("references") if flt(d.outstanding_amount) < 0
-		)
-
-		paid_amount = self.paid_amount if self.payment_type == "Receive" else self.received_amount
-		additional_charges = sum(flt(d.amount) for d in self.deductions)
-
-		if not total_negative_outstanding:
-			if self.party_type == "Customer":
-				msg = _("Cannot pay to Customer without any negative outstanding invoice")
-			else:
-				msg = _("Cannot receive from Supplier without any negative outstanding invoice")
-
-			frappe.throw(msg, InvalidPaymentEntry)
-
-		elif paid_amount - additional_charges > total_negative_outstanding:
-			frappe.throw(
-				_("Paid Amount cannot be greater than total negative outstanding amount {0}").format(
-					fmt_money(total_negative_outstanding)
-				),
-				InvalidPaymentEntry,
-			)
-
 	def set_title(self):
 		if frappe.flags.in_import and self.title:
 			# do not set title dynamically if title exists during data import.
@@ -1083,9 +1053,7 @@
 				item=self,
 			)
 
-			dr_or_cr = (
-				"credit" if erpnext.get_party_account_type(self.party_type) == "Receivable" else "debit"
-			)
+			dr_or_cr = "credit" if self.payment_type == "Receive" else "debit"
 
 			for d in self.get("references"):
 				cost_center = self.cost_center