diff --git a/erpnext/accounts/doctype/bank_transaction/bank_transaction.js b/erpnext/accounts/doctype/bank_transaction/bank_transaction.js
index 5c5d9ff3469..1ca76a68fde 100644
--- a/erpnext/accounts/doctype/bank_transaction/bank_transaction.js
+++ b/erpnext/accounts/doctype/bank_transaction/bank_transaction.js
@@ -2,27 +2,6 @@
 // For license information, please see license.txt
 
 frappe.ui.form.on("Bank Transaction", {
-	onload(frm) {
-		frm.set_query("payment_document", "payment_entries", function () {
-			const payment_doctypes = frm.events.get_payment_doctypes(frm);
-			return {
-				filters: {
-					name: ["in", payment_doctypes],
-				},
-			};
-		});
-	},
-	refresh(frm) {
-		if (!frm.is_dirty() && frm.doc.payment_entries.length > 0) {
-			frm.add_custom_button(__("Unreconcile Transaction"), () => {
-				frm.call("remove_payment_entries").then(() => frm.refresh());
-			});
-		}
-	},
-	bank_account: function (frm) {
-		set_bank_statement_filter(frm);
-	},
-
 	setup: function (frm) {
 		frm.set_query("party_type", function () {
 			return {
@@ -37,6 +16,35 @@ frappe.ui.form.on("Bank Transaction", {
 				filters: { is_company_account: 1 },
 			};
 		});
+
+		frm.set_query("payment_document", "payment_entries", function () {
+			const payment_doctypes = frm.events.get_payment_doctypes(frm);
+			return {
+				filters: {
+					name: ["in", payment_doctypes],
+				},
+			};
+		});
+
+		frm.set_query("payment_entry", "payment_entries", function () {
+			return {
+				filters: {
+					docstatus: ["!=", 2],
+				},
+			};
+		});
+	},
+
+	refresh(frm) {
+		if (!frm.is_dirty() && frm.doc.payment_entries.length > 0) {
+			frm.add_custom_button(__("Unreconcile Transaction"), () => {
+				frm.call("remove_payment_entries").then(() => frm.refresh());
+			});
+		}
+	},
+
+	bank_account: function (frm) {
+		set_bank_statement_filter(frm);
 	},
 
 	get_payment_doctypes: function () {