diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.py b/erpnext/accounts/doctype/payment_entry/payment_entry.py
index 291f8e4..236a78a 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.py
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.py
@@ -1741,6 +1741,9 @@
 
 		if reference_doctype in ("Sales Invoice", "Purchase Invoice"):
 			outstanding_amount = ref_doc.get("outstanding_amount")
+			account = (
+				ref_doc.get("debit_to") if reference_doctype == "Sales Invoice" else ref_doc.get("credit_to")
+			)
 		else:
 			outstanding_amount = flt(total_amount) - flt(ref_doc.get("advance_paid"))
 
@@ -1748,7 +1751,7 @@
 		# Get the exchange rate based on the posting date of the ref doc.
 		exchange_rate = get_exchange_rate(party_account_currency, company_currency, ref_doc.posting_date)
 
-	return frappe._dict(
+	res = frappe._dict(
 		{
 			"due_date": ref_doc.get("due_date"),
 			"total_amount": flt(total_amount),
@@ -1757,6 +1760,9 @@
 			"bill_no": ref_doc.get("bill_no"),
 		}
 	)
+	if account:
+		res.update({"account": account})
+	return res
 
 
 @frappe.whitelist()
diff --git a/erpnext/accounts/doctype/payment_entry_reference/payment_entry_reference.json b/erpnext/accounts/doctype/payment_entry_reference/payment_entry_reference.json
index c318ea5..12aa0b5 100644
--- a/erpnext/accounts/doctype/payment_entry_reference/payment_entry_reference.json
+++ b/erpnext/accounts/doctype/payment_entry_reference/payment_entry_reference.json
@@ -113,7 +113,7 @@
  "index_web_pages_for_search": 1,
  "istable": 1,
  "links": [],
- "modified": "2023-06-07 14:35:06.166907",
+ "modified": "2023-06-08 07:40:38.487874",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Payment Entry Reference",
diff --git a/erpnext/accounts/doctype/purchase_invoice/test_purchase_invoice.py b/erpnext/accounts/doctype/purchase_invoice/test_purchase_invoice.py
index a6d7df6..ebb4970 100644
--- a/erpnext/accounts/doctype/purchase_invoice/test_purchase_invoice.py
+++ b/erpnext/accounts/doctype/purchase_invoice/test_purchase_invoice.py
@@ -1662,22 +1662,66 @@
 
 		self.assertTrue(return_pi.docstatus == 1)
 
+	def test_advance_entries_as_liability(self):
+		from erpnext.accounts.doctype.payment_entry.test_payment_entry import create_payment_entry
+		from erpnext.accounts.party import get_party_account
+
+		frappe.db.set_value(
+			"Company",
+			"_Test Company",
+			{"book_advance_payments_as_liability": 1, "default_advance_account": "Debtors - _TC"},
+		)
+		pe = create_payment_entry(
+			company="_Test Company",
+			payment_type="Pay",
+			party_type="Supplier",
+			party="_Test Supplier",
+			paid_from="Cash - _TC",
+			paid_to=get_party_account("Supplier", "_Test Supplier", "_Test Company", is_advance=True),
+			paid_amount=1000,
+		)
+		pe.submit()
+
+		pi = make_purchase_invoice(
+			company="_Test Company", customer="_Test Supplier", do_not_save=True, do_not_submit=True
+		)
+		pi.base_grand_total = 100
+		pi.grand_total = 100
+		pi.set_advances()
+		self.assertEqual(pi.advances[0].allocated_amount, 100)
+		pi.advances[0].allocated_amount = 50
+		pi.advances = [pi.advances[0]]
+		pi.save()
+		pi.submit()
+		expected_gle = [
+			["Creditors - _TC", 50, 100],
+			["Debtors - _TC", 0.0, 50],
+			["Stock Received But Not Billed - _TC", 100, 0.0],
+		]
+
+		check_gl_entries(self, pi.name, expected_gle, nowdate())
+		self.assertEqual(pi.outstanding_amount, 200)
+
 
 def check_gl_entries(doc, voucher_no, expected_gle, posting_date):
-	gl_entries = frappe.db.sql(
-		"""select account, debit, credit, posting_date
-		from `tabGL Entry`
-		where voucher_type='Purchase Invoice' and voucher_no=%s and posting_date >= %s
-		order by posting_date asc, account asc""",
-		(voucher_no, posting_date),
-		as_dict=1,
+	gl = frappe.qb.DocType("GL Entry")
+	q = (
+		frappe.qb.from_(gl)
+		.select(gl.account, gl.debit, gl.credit, gl.posting_date)
+		.where(
+			(gl.voucher_type == "Sales Invoice")
+			& (gl.voucher_no == voucher_no)
+			& (gl.posting_date >= posting_date)
+			& (gl.is_cancelled == 0)
+		)
+		.orderby(gl.posting_date, gl.account)
 	)
+	gl_entries = q.run(as_dict=True)
 
 	for i, gle in enumerate(gl_entries):
 		doc.assertEqual(expected_gle[i][0], gle.account)
 		doc.assertEqual(expected_gle[i][1], gle.debit)
 		doc.assertEqual(expected_gle[i][2], gle.credit)
-		doc.assertEqual(getdate(expected_gle[i][3]), gle.posting_date)
 
 
 def create_tax_witholding_category(category_name, company, account):
diff --git a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
index dbc2770..d10fa05 100644
--- a/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
+++ b/erpnext/accounts/doctype/sales_invoice/test_sales_invoice.py
@@ -3313,6 +3313,46 @@
 		)
 		self.assertRaises(frappe.ValidationError, si.submit)
 
+	def test_advance_entries_as_liability(self):
+		from erpnext.accounts.doctype.payment_entry.test_payment_entry import create_payment_entry
+		from erpnext.accounts.party import get_party_account
+
+		frappe.db.set_value(
+			"Company",
+			"_Test Company",
+			{"book_advance_payments_as_liability": 1, "default_advance_account": "Creditors - _TC"},
+		)
+		pe = create_payment_entry(
+			company="_Test Company",
+			payment_type="Receive",
+			party_type="Customer",
+			party="_Test Customer",
+			paid_from=get_party_account("Customer", "_Test Customer", "_Test Company", is_advance=True),
+			paid_to="Cash - _TC",
+			paid_amount=1000,
+		)
+		pe.submit()
+
+		si = create_sales_invoice(
+			company="_Test Company", customer="_Test Customer", do_not_save=True, do_not_submit=True
+		)
+		si.base_grand_total = 100
+		si.grand_total = 100
+		si.set_advances()
+		self.assertEqual(si.advances[0].allocated_amount, 100)
+		si.advances[0].allocated_amount = 50
+		si.advances = [si.advances[0]]
+		si.save()
+		si.submit()
+		expected_gle = [
+			["Creditors - _TC", 50, 0.0],
+			["Debtors - _TC", 100, 50],
+			["Sales - _TC", 0.0, 100],
+		]
+
+		check_gl_entries(self, si.name, expected_gle, nowdate())
+		self.assertEqual(si.outstanding_amount, 50)
+
 
 def get_sales_invoice_for_e_invoice():
 	si = make_sales_invoice_for_ewaybill()
@@ -3350,23 +3390,24 @@
 
 
 def check_gl_entries(doc, voucher_no, expected_gle, posting_date):
-	gl_entries = frappe.db.sql(
-		"""select account, debit, credit, posting_date
-		from `tabGL Entry`
-		where voucher_type='Sales Invoice' and voucher_no=%s and posting_date >= %s
-		and is_cancelled = 0
-		order by posting_date asc, account asc""",
-		(voucher_no, posting_date),
-		as_dict=1,
-		debug=True,
+	gl = frappe.qb.DocType("GL Entry")
+	q = (
+		frappe.qb.from_(gl)
+		.select(gl.account, gl.debit, gl.credit, gl.posting_date)
+		.where(
+			(gl.voucher_type == "Sales Invoice")
+			& (gl.voucher_no == voucher_no)
+			& (gl.posting_date >= posting_date)
+			& (gl.is_cancelled == 0)
+		)
+		.orderby(gl.posting_date, gl.account)
 	)
+	gl_entries = q.run(as_dict=True)
 
 	for i, gle in enumerate(gl_entries):
-		print(i, gle)
 		doc.assertEqual(expected_gle[i][0], gle.account)
 		doc.assertEqual(expected_gle[i][1], gle.debit)
 		doc.assertEqual(expected_gle[i][2], gle.credit)
-		doc.assertEqual(getdate(expected_gle[i][3]), gle.posting_date)
 
 
 def create_sales_invoice(**args):
diff --git a/erpnext/accounts/utils.py b/erpnext/accounts/utils.py
index 506279c..c1d3653 100644
--- a/erpnext/accounts/utils.py
+++ b/erpnext/accounts/utils.py
@@ -625,6 +625,7 @@
 		if not d.exchange_gain_loss
 		else payment_entry.get_exchange_rate(),
 		"exchange_gain_loss": d.exchange_gain_loss,  # only populated from invoice in case of advance allocation
+		"account": d.account,
 	}
 
 	if d.voucher_detail_no: