diff --git a/erpnext/payroll/doctype/payroll_entry/test_payroll_entry.py b/erpnext/payroll/doctype/payroll_entry/test_payroll_entry.py
index e098ec79b0f..84c381489ca 100644
--- a/erpnext/payroll/doctype/payroll_entry/test_payroll_entry.py
+++ b/erpnext/payroll/doctype/payroll_entry/test_payroll_entry.py
@@ -12,7 +12,7 @@ from erpnext.hr.doctype.employee.test_employee import make_employee
 from erpnext.payroll.doctype.salary_slip.test_salary_slip import get_salary_component_account, \
 		make_earning_salary_component, make_deduction_salary_component, create_account, make_employee_salary_slip
 from erpnext.payroll.doctype.salary_structure.test_salary_structure import make_salary_structure, create_salary_structure_assignment
-from erpnext.loan_management.doctype.loan.test_loan import create_loan, make_loan_disbursement_entry
+from erpnext.loan_management.doctype.loan.test_loan import create_loan, make_loan_disbursement_entry, create_loan_type, create_loan_accounts
 from erpnext.loan_management.doctype.process_loan_interest_accrual.process_loan_interest_accrual import process_loan_interest_accrual_for_term_loans
 
 class TestPayrollEntry(unittest.TestCase):
@@ -168,15 +168,23 @@ class TestPayrollEntry(unittest.TestCase):
 		salary_structure = "Test Salary Structure for Loan"
 		make_salary_structure(salary_structure, "Monthly", employee=employee_doc.name, company="_Test Company", currency=company_doc.default_currency)
 
+		if not frappe.db.exists("Loan Type", "Car Loan"):
+			create_loan_accounts()
+			create_loan_type("Car Loan", 500000, 8.4,
+				is_term_loan=1,
+				mode_of_payment='Cash',
+				payment_account='Payment Account - _TC',
+				loan_account='Loan Account - _TC',
+				interest_income_account='Interest Income Account - _TC',
+				penalty_income_account='Penalty Income Account - _TC')
+
 		loan = create_loan(applicant, "Car Loan", 280000, "Repay Over Number of Periods", 20, posting_date=add_months(nowdate(), -1))
 		loan.repay_from_salary = 1
 		loan.submit()
 
 		make_loan_disbursement_entry(loan.name, loan.loan_amount, disbursement_date=add_months(nowdate(), -1))
-
 		process_loan_interest_accrual_for_term_loans(posting_date=nowdate())
 
-
 		dates = get_start_end_dates('Monthly', nowdate())
 		make_payroll_entry(company="_Test Company", start_date=dates.start_date, payable_account=company_doc.default_payroll_payable_account,
 			currency=company_doc.default_currency, end_date=dates.end_date, branch=branch, cost_center="Main - _TC", payment_account="Cash - _TC")
@@ -267,4 +275,4 @@ def get_salary_slip(user, period, salary_structure):
 	salary_slip.calculate_net_pay()
 	salary_slip.db_update()
 
-	return salary_slip
\ No newline at end of file
+	return salary_slip