diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.json b/erpnext/accounts/doctype/payment_entry/payment_entry.json
index c7e05f70d7f..abc4eec0ffb 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.json
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.json
@@ -21,7 +21,6 @@
   "party_name",
   "book_advance_payments_in_separate_party_account",
   "reconcile_on_advance_payment_date",
-  "advance_reconciliation_takes_effect_on",
   "column_break_11",
   "bank_account",
   "party_bank_account",
@@ -786,18 +785,9 @@
    "options": "No\nYes",
    "print_hide": 1,
    "search_index": 1
-  },
-  {
-   "default": "Oldest Of Invoice Or Advance",
-   "fetch_from": "company.reconciliation_takes_effect_on",
-   "fieldname": "advance_reconciliation_takes_effect_on",
-   "fieldtype": "Select",
-   "hidden": 1,
-   "label": "Advance Reconciliation Takes Effect On",
-   "no_copy": 1,
-   "options": "Advance Payment Date\nOldest Of Invoice Or Advance\nReconciliation Date"
   }
  ],
+ "grid_page_length": 50,
  "index_web_pages_for_search": 1,
  "is_submittable": 1,
  "links": [
@@ -809,7 +799,7 @@
    "table_fieldname": "payment_entries"
   }
  ],
- "modified": "2025-03-24 16:18:19.920701",
+ "modified": "2025-05-08 11:18:10.238085",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Payment Entry",
@@ -849,6 +839,7 @@
    "write": 1
   }
  ],
+ "row_format": "Dynamic",
  "show_name_in_global_search": 1,
  "sort_field": "modified",
  "sort_order": "DESC",
diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.py b/erpnext/accounts/doctype/payment_entry/payment_entry.py
index 1c91b9ef8e3..738559c7059 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.py
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.py
@@ -1492,9 +1492,15 @@ class PaymentEntry(AccountsController):
 		else:
 			# For backwards compatibility
 			# Supporting reposting on payment entries reconciled before select field introduction
-			if self.advance_reconciliation_takes_effect_on == "Advance Payment Date":
+			if (
+				frappe.get_cached_value("Company", self.company, "reconciliation_takes_effect_on")
+				== "Advance Payment Date"
+			):
 				posting_date = self.posting_date
-			elif self.advance_reconciliation_takes_effect_on == "Oldest Of Invoice Or Advance":
+			elif (
+				frappe.get_cached_value("Company", self.company, "reconciliation_takes_effect_on")
+				== "Oldest Of Invoice Or Advance"
+			):
 				date_field = "posting_date"
 				if invoice.reference_doctype in ["Sales Order", "Purchase Order"]:
 					date_field = "transaction_date"
@@ -1504,7 +1510,10 @@ class PaymentEntry(AccountsController):
 
 				if getdate(posting_date) < getdate(self.posting_date):
 					posting_date = self.posting_date
-			elif self.advance_reconciliation_takes_effect_on == "Reconciliation Date":
+			elif (
+				frappe.get_cached_value("Company", self.company, "reconciliation_takes_effect_on")
+				== "Reconciliation Date"
+			):
 				posting_date = nowdate()
 			frappe.db.set_value("Payment Entry Reference", invoice.name, "reconcile_effect_on", posting_date)
 
diff --git a/erpnext/accounts/utils.py b/erpnext/accounts/utils.py
index b46e427382f..5449c869e82 100644
--- a/erpnext/accounts/utils.py
+++ b/erpnext/accounts/utils.py
@@ -714,9 +714,15 @@ def update_reference_in_payment_entry(
 
 	# Update Reconciliation effect date in reference
 	if payment_entry.book_advance_payments_in_separate_party_account:
-		if payment_entry.advance_reconciliation_takes_effect_on == "Advance Payment Date":
+		if (
+			frappe.get_cached_value("Company", payment_entry.company, "reconciliation_takes_effect_on")
+			== "Advance Payment Date"
+		):
 			reconcile_on = payment_entry.posting_date
-		elif payment_entry.advance_reconciliation_takes_effect_on == "Oldest Of Invoice Or Advance":
+		elif (
+			frappe.get_cached_value("Company", payment_entry.company, "reconciliation_takes_effect_on")
+			== "Oldest Of Invoice Or Advance"
+		):
 			date_field = "posting_date"
 			if d.against_voucher_type in ["Sales Order", "Purchase Order"]:
 				date_field = "transaction_date"
@@ -724,7 +730,10 @@ def update_reference_in_payment_entry(
 
 			if getdate(reconcile_on) < getdate(payment_entry.posting_date):
 				reconcile_on = payment_entry.posting_date
-		elif payment_entry.advance_reconciliation_takes_effect_on == "Reconciliation Date":
+		elif (
+			frappe.get_cached_value("Company", payment_entry.company, "reconciliation_takes_effect_on")
+			== "Reconciliation Date"
+		):
 			reconcile_on = nowdate()
 
 		reference_details.update({"reconcile_effect_on": reconcile_on})