diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.py b/erpnext/accounts/doctype/payment_entry/payment_entry.py
index 07d129c26dd..f1bbd581338 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.py
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.py
@@ -196,6 +196,9 @@ class PaymentEntry(AccountsController):
 	def before_save(self):
 		self.set_matched_unset_payment_requests_to_response()
 
+	def before_submit(self):
+		self.set_exchange_rate_in_advance()
+
 	def on_submit(self):
 		if self.difference_amount:
 			frappe.throw(_("Difference Amount must be zero"))
@@ -922,6 +925,18 @@ class PaymentEntry(AccountsController):
 
 		self.db_set("status", self.status, update_modified=True)
 
+	def set_exchange_rate_in_advance(self):
+		if self.references:
+			for reference_doc in self.references:
+				if reference_doc.reference_doctype == "Employee Advance" and self.target_exchange_rate:
+					frappe.db.set_value(
+						"Employee Advance",
+						reference_doc.reference_name,
+						"exchange_rate",
+						self.target_exchange_rate,
+						update_modified=False,
+					)
+
 	def set_total_in_words(self):
 		from frappe.utils import money_in_words
 
diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index 5c9663d2b52..94f3a8b32d8 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -1289,7 +1289,10 @@ class AccountsController(TransactionBase):
 			"Payment Entry",
 		]:
 			set_balance_in_account_currency(
-				gl_dict, account_currency, self.get("conversion_rate"), self.company_currency
+				gl_dict,
+				account_currency,
+				args.get("transaction_exchange_rate") or self.get("conversion_rate"),
+				self.company_currency,
 			)
 
 		# Update details in transaction currency
@@ -1297,7 +1300,8 @@ class AccountsController(TransactionBase):
 			gl_dict.update(
 				{
 					"transaction_currency": self.get("currency") or self.company_currency,
-					"transaction_exchange_rate": self.get("conversion_rate", 1),
+					"transaction_exchange_rate": args.get("transaction_exchange_rate")
+					or self.get("conversion_rate", 1),
 					"debit_in_transaction_currency": self.get_value_in_transaction_currency(
 						account_currency, gl_dict, "debit"
 					),
diff --git a/erpnext/setup/doctype/employee/employee.js b/erpnext/setup/doctype/employee/employee.js
index 22079e94075..09d2855b0aa 100755
--- a/erpnext/setup/doctype/employee/employee.js
+++ b/erpnext/setup/doctype/employee/employee.js
@@ -35,6 +35,20 @@ frappe.ui.form.on("Employee", {
 				},
 			};
 		});
+
+		if (frm.doc.salary_currency) {
+			frm.set_query("employee_advance_account", function () {
+				return {
+					filters: {
+						root_type: "Asset",
+						is_group: 0,
+						company: frm.doc.company,
+						account_currency: frm.doc.salary_currency,
+						account_type: "Receivable",
+					},
+				};
+			});
+		}
 	},
 
 	refresh: function (frm) {