diff --git a/erpnext/accounts/utils.py b/erpnext/accounts/utils.py
index 9132cb15fd9..30081e275ff 100644
--- a/erpnext/accounts/utils.py
+++ b/erpnext/accounts/utils.py
@@ -512,7 +512,8 @@ def reconcile_against_document(
 					skip_ref_details_update_for_pe=skip_ref_details_update_for_pe,
 					dimensions_dict=dimensions_dict,
 				)
-
+				if referenced_row.get("outstanding_amount"):
+					referenced_row.outstanding_amount -= flt(entry.allocated_amount)
 		doc.save(ignore_permissions=True)
 		# re-submit advance entry
 		doc = frappe.get_doc(entry.voucher_type, entry.voucher_no)