diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.js b/erpnext/accounts/doctype/payment_entry/payment_entry.js
index 8d5e6436d89..ddb7dbacb0b 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.js
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.js
@@ -754,17 +754,21 @@ frappe.ui.form.on("Payment Entry", {
 		frm.set_paid_amount_based_on_received_amount = true;
 		let company_currency = frappe.get_doc(":Company", frm.doc.company).default_currency;
 
-		if (frm.doc.base_received_amount && frm.doc.source_exchange_rate) {
-			frm.set_value("base_paid_amount", frm.doc.base_received_amount);
+		if (frm.doc.paid_amount && frm.doc.source_exchange_rate) {
+			frm.set_value("base_paid_amount", flt(frm.doc.paid_amount) * flt(frm.doc.source_exchange_rate));
+			frm.set_value("base_received_amount", frm.doc.base_paid_amount);
 
 			// target exchange rate should always be same as source if both account currencies is same
 			if (frm.doc.paid_from_account_currency == frm.doc.paid_to_account_currency) {
 				frm.set_value("target_exchange_rate", frm.doc.source_exchange_rate);
+				frm.set_value("received_amount", frm.doc.paid_amount);
 			} else {
-				frm.set_value(
-					"paid_amount",
-					flt(frm.doc.base_paid_amount) / flt(frm.doc.source_exchange_rate)
-				);
+				const target_rate =
+					flt(frm.doc.target_exchange_rate) ||
+					(company_currency == frm.doc.paid_to_account_currency ? 1 : 0);
+				if (target_rate) {
+					frm.set_value("received_amount", flt(frm.doc.base_received_amount) / target_rate);
+				}
 			}
 
 			// set_unallocated_amount is called by below method,
@@ -780,18 +784,23 @@ frappe.ui.form.on("Payment Entry", {
 	target_exchange_rate: function (frm) {
 		let company_currency = frappe.get_doc(":Company", frm.doc.company).default_currency;
 
-		if (frm.doc.base_paid_amount && frm.doc.target_exchange_rate) {
-			frm.set_value("base_received_amount", frm.doc.base_paid_amount);
-			if (
-				!frm.doc.source_exchange_rate &&
-				frm.doc.paid_from_account_currency == frm.doc.paid_to_account_currency
-			) {
+		if (frm.doc.received_amount && frm.doc.target_exchange_rate) {
+			frm.set_value(
+				"base_received_amount",
+				flt(frm.doc.received_amount) * flt(frm.doc.target_exchange_rate)
+			);
+			frm.set_value("base_paid_amount", frm.doc.base_received_amount);
+
+			if (frm.doc.paid_from_account_currency == frm.doc.paid_to_account_currency) {
 				frm.set_value("source_exchange_rate", frm.doc.target_exchange_rate);
+				frm.set_value("paid_amount", frm.doc.received_amount);
 			} else {
-				frm.set_value(
-					"received_amount",
-					flt(frm.doc.base_received_amount) / flt(frm.doc.target_exchange_rate)
-				);
+				const source_rate =
+					flt(frm.doc.source_exchange_rate) ||
+					(company_currency == frm.doc.paid_from_account_currency ? 1 : 0);
+				if (source_rate) {
+					frm.set_value("paid_amount", flt(frm.doc.base_paid_amount) / source_rate);
+				}
 			}
 
 			// set_unallocated_amount is called by below method,