diff --git a/hrms/payroll/doctype/salary_slip/salary_slip_loan_utils.py b/hrms/payroll/doctype/salary_slip/salary_slip_loan_utils.py
index f70a02cd6f..b2f88860d9 100644
--- a/hrms/payroll/doctype/salary_slip/salary_slip_loan_utils.py
+++ b/hrms/payroll/doctype/salary_slip/salary_slip_loan_utils.py
@@ -147,7 +147,12 @@ def make_loan_repayment_entry(doc: "SalarySlip"):
 		)
 
 		repayment_entry.save()
+
+		if not process_payroll_accounting_entry_based_on_employee:
+			frappe.flags.party_not_required = True
+
 		repayment_entry.submit()
+		frappe.flags.party_not_required = False
 
 		frappe.db.set_value("Salary Slip Loan", loan.name, "loan_repayment_entry", repayment_entry.name)