diff --git a/erpnext/accounts/general_ledger.py b/erpnext/accounts/general_ledger.py
index 0e97d6969bd..7df3bce9b4a 100644
--- a/erpnext/accounts/general_ledger.py
+++ b/erpnext/accounts/general_ledger.py
@@ -18,7 +18,7 @@ from erpnext.accounts.doctype.accounting_dimension_filter.accounting_dimension_f
 )
 from erpnext.accounts.doctype.accounting_period.accounting_period import ClosedAccountingPeriod
 from erpnext.accounts.doctype.budget.budget import validate_expense_against_budget
-from erpnext.accounts.utils import create_payment_ledger_entry
+from erpnext.accounts.utils import create_payment_ledger_entry, is_immutable_ledger_enabled
 from erpnext.exceptions import InvalidAccountDimensionError, MandatoryAccountDimensionError
 
 
@@ -838,7 +838,3 @@ def validate_allowed_dimensions(gl_entry, dimension_filter_map):
 						),
 						InvalidAccountDimensionError,
 					)
-
-
-def is_immutable_ledger_enabled():
-	return frappe.db.get_single_value("Accounts Settings", "enable_immutable_ledger")
diff --git a/erpnext/accounts/utils.py b/erpnext/accounts/utils.py
index 32d4657ea7c..15117b2aa43 100644
--- a/erpnext/accounts/utils.py
+++ b/erpnext/accounts/utils.py
@@ -1895,6 +1895,9 @@ def create_payment_ledger_entry(
 
 			if cancel:
 				delink_original_entry(ple, partial_cancel=partial_cancel)
+				if is_immutable_ledger_enabled():
+					ple.delinked = 0
+					ple.posting_date = frappe.form_dict.get("posting_date") or getdate()
 
 			ple.flags.ignore_permissions = 1
 			ple.flags.adv_adj = adv_adj
@@ -1982,7 +1985,6 @@ def delink_original_entry(pl_entry, partial_cancel=False):
 		ple = qb.DocType("Payment Ledger Entry")
 		query = (
 			qb.update(ple)
-			.set(ple.delinked, True)
 			.set(ple.modified, now())
 			.set(ple.modified_by, frappe.session.user)
 			.where(
@@ -2001,6 +2003,9 @@ def delink_original_entry(pl_entry, partial_cancel=False):
 		if partial_cancel:
 			query = query.where(ple.voucher_detail_no == pl_entry.voucher_detail_no)
 
+		if not is_immutable_ledger_enabled():
+			query = query.set(ple.delinked, True)
+
 		query.run()
 
 
@@ -2457,3 +2462,7 @@ def build_qb_match_conditions(doctype, user=None) -> list:
 					criterion.append(cond)
 
 	return criterion
+
+
+def is_immutable_ledger_enabled():
+	return frappe.get_single_value("Accounts Settings", "enable_immutable_ledger")