diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.py b/erpnext/accounts/doctype/payment_entry/payment_entry.py
index 8a0bd527e1c..0cf91dceb16 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.py
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.py
@@ -1560,13 +1560,14 @@ class PaymentEntry(AccountsController):
 			"voucher_no": self.name,
 			"voucher_detail_no": invoice.name,
 		}
-
 		if invoice.reconcile_effect_on:
 			posting_date = invoice.reconcile_effect_on
 		else:
 			# For backwards compatibility
 			# Supporting reposting on payment entries reconciled before select field introduction
-			posting_date = get_reconciliation_effect_date(invoice, self.company, self.posting_date)
+			posting_date = get_reconciliation_effect_date(
+				invoice.reference_doctype, invoice.reference_name, self.company, self.posting_date
+			)
 			frappe.db.set_value("Payment Entry Reference", invoice.name, "reconcile_effect_on", posting_date)
 
 		dr_or_cr, account = self.get_dr_and_account_for_advances(invoice)
diff --git a/erpnext/accounts/utils.py b/erpnext/accounts/utils.py
index dcb05d7040a..5aca7dd04cc 100644
--- a/erpnext/accounts/utils.py
+++ b/erpnext/accounts/utils.py
@@ -732,7 +732,9 @@ def update_reference_in_payment_entry(
 
 	# Update Reconciliation effect date in reference
 	if payment_entry.book_advance_payments_in_separate_party_account:
-		reconcile_on = get_reconciliation_effect_date(d, payment_entry.company, payment_entry.posting_date)
+		reconcile_on = get_reconciliation_effect_date(
+			d.against_voucher_type, d.against_voucher, payment_entry.company, payment_entry.posting_date
+		)
 		reference_details.update({"reconcile_effect_on": reconcile_on})
 
 	if d.voucher_detail_no:
@@ -787,20 +789,21 @@ def update_reference_in_payment_entry(
 	return row, update_advance_paid
 
 
-def get_reconciliation_effect_date(reference, company, posting_date):
+def get_reconciliation_effect_date(against_voucher_type, against_voucher, company, posting_date):
 	reconciliation_takes_effect_on = frappe.get_cached_value(
 		"Company", company, "reconciliation_takes_effect_on"
 	)
 
+	# default
+	reconcile_on = posting_date
+
 	if reconciliation_takes_effect_on == "Advance Payment Date":
 		reconcile_on = posting_date
 	elif reconciliation_takes_effect_on == "Oldest Of Invoice Or Advance":
 		date_field = "posting_date"
-		if reference.against_voucher_type in ["Sales Order", "Purchase Order"]:
+		if against_voucher_type in ["Sales Order", "Purchase Order"]:
 			date_field = "transaction_date"
-		reconcile_on = frappe.db.get_value(
-			reference.against_voucher_type, reference.against_voucher, date_field
-		)
+		reconcile_on = frappe.db.get_value(against_voucher_type, against_voucher, date_field)
 		if getdate(reconcile_on) < getdate(posting_date):
 			reconcile_on = posting_date
 	elif reconciliation_takes_effect_on == "Reconciliation Date":