diff --git a/erpnext/accounts/doctype/payment_request/payment_request.py b/erpnext/accounts/doctype/payment_request/payment_request.py
index 8c6c8918c76..f1a88d0adc4 100644
--- a/erpnext/accounts/doctype/payment_request/payment_request.py
+++ b/erpnext/accounts/doctype/payment_request/payment_request.py
@@ -206,9 +206,6 @@ class PaymentRequest(Document):
 					self.send_email()
 					self.make_communication_entry()
 
-	def on_submit(self):
-		self.update_reference_advance_payment_status()
-
 	def request_phone_payment(self):
 		controller = _get_payment_gateway_controller(self.payment_gateway)
 		request_amount = self.get_request_amount()
@@ -493,14 +490,6 @@ class PaymentRequest(Document):
 		if payment_provider == "stripe":
 			return create_stripe_subscription(gateway_controller, data)
 
-	def update_reference_advance_payment_status(self):
-		advance_payment_doctypes = frappe.get_hooks("advance_payment_receivable_doctypes") + frappe.get_hooks(
-			"advance_payment_payable_doctypes"
-		)
-		if self.reference_doctype in advance_payment_doctypes:
-			ref_doc = frappe.get_doc(self.reference_doctype, self.reference_name)
-			ref_doc.set_advance_payment_status()
-
 	def _allocate_payment_request_to_pe_references(self, references):
 		"""
 		Allocate the Payment Request to the Payment Entry references based on\n
diff --git a/erpnext/accounts/doctype/payment_request/test_payment_request.py b/erpnext/accounts/doctype/payment_request/test_payment_request.py
index 4caffdb431a..053863babdc 100644
--- a/erpnext/accounts/doctype/payment_request/test_payment_request.py
+++ b/erpnext/accounts/doctype/payment_request/test_payment_request.py
@@ -284,8 +284,6 @@ class TestPaymentRequest(FrappeTestCase):
 	def test_multiple_payment_if_partially_paid_for_same_currency(self):
 		so = make_sales_order(currency="INR", qty=1, rate=1000)
 
-		self.assertEqual(so.advance_payment_status, "Not Requested")
-
 		pr = make_payment_request(
 			dt="Sales Order",
 			dn=so.name,
@@ -300,7 +298,6 @@ class TestPaymentRequest(FrappeTestCase):
 		self.assertEqual(pr.status, "Requested")
 
 		so.load_from_db()
-		self.assertEqual(so.advance_payment_status, "Requested")
 
 		# to make partial payment
 		pe = pr.create_payment_entry(submit=False)
@@ -311,7 +308,6 @@ class TestPaymentRequest(FrappeTestCase):
 		self.assertEqual(pe.references[0].payment_request, pr.name)
 
 		so.load_from_db()
-		self.assertEqual(so.advance_payment_status, "Partially Paid")
 
 		pr.load_from_db()
 		self.assertEqual(pr.status, "Partially Paid")
@@ -327,7 +323,6 @@ class TestPaymentRequest(FrappeTestCase):
 		self.assertEqual(pe.references[0].payment_request, pr.name)
 
 		so.load_from_db()
-		self.assertEqual(so.advance_payment_status, "Fully Paid")
 
 		pr.load_from_db()
 		self.assertEqual(pr.status, "Paid")
@@ -409,8 +404,6 @@ class TestPaymentRequest(FrappeTestCase):
 		po.save()
 		po.submit()
 
-		self.assertEqual(po.advance_payment_status, "Not Initiated")
-
 		pr = make_payment_request(
 			dt="Purchase Order",
 			dn=po.name,
@@ -425,7 +418,6 @@ class TestPaymentRequest(FrappeTestCase):
 		self.assertEqual(pr.status, "Initiated")
 
 		po.load_from_db()
-		self.assertEqual(po.advance_payment_status, "Initiated")
 
 		pe = pr.create_payment_entry()
 
@@ -441,7 +433,6 @@ class TestPaymentRequest(FrappeTestCase):
 		self.assertEqual(pe.references[1].payment_request, pr.name)
 
 		po.load_from_db()
-		self.assertEqual(po.advance_payment_status, "Fully Paid")
 
 		pr.load_from_db()
 		self.assertEqual(pr.status, "Paid")
@@ -491,7 +482,6 @@ class TestPaymentRequest(FrappeTestCase):
 
 	def test_payment_cancel_process(self):
 		so = make_sales_order(currency="INR", qty=1, rate=1000)
-		self.assertEqual(so.advance_payment_status, "Not Requested")
 
 		pr = make_payment_request(
 			dt="Sales Order",
@@ -506,7 +496,6 @@ class TestPaymentRequest(FrappeTestCase):
 		self.assertEqual(pr.outstanding_amount, pr.grand_total)
 
 		so.load_from_db()
-		self.assertEqual(so.advance_payment_status, "Requested")
 
 		pe = pr.create_payment_entry(submit=False)
 		pe.paid_amount = 800
@@ -516,7 +505,6 @@ class TestPaymentRequest(FrappeTestCase):
 		self.assertEqual(pe.references[0].payment_request, pr.name)
 
 		so.load_from_db()
-		self.assertEqual(so.advance_payment_status, "Partially Paid")
 
 		pr.load_from_db()
 		self.assertEqual(pr.status, "Partially Paid")
@@ -532,4 +520,3 @@ class TestPaymentRequest(FrappeTestCase):
 		self.assertEqual(pr.grand_total, 1000)
 
 		so.load_from_db()
-		self.assertEqual(so.advance_payment_status, "Requested")
diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index ff41b3038cc..da222d5f58e 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -1846,37 +1846,6 @@ class AccountsController(TransactionBase):
 
 			self.db_set("advance_paid", advance_paid)
 
-		self.set_advance_payment_status()
-
-	def set_advance_payment_status(self):
-		new_status = None
-
-		paid_amount = frappe.get_value(
-			doctype="Payment Request",
-			filters={
-				"reference_doctype": self.doctype,
-				"reference_name": self.name,
-				"docstatus": 1,
-			},
-			fieldname="sum(grand_total - outstanding_amount)",
-		)
-
-		if not paid_amount:
-			if self.doctype in frappe.get_hooks("advance_payment_receivable_doctypes"):
-				new_status = "Not Requested" if paid_amount is None else "Requested"
-			elif self.doctype in frappe.get_hooks("advance_payment_payable_doctypes"):
-				new_status = "Not Initiated" if paid_amount is None else "Initiated"
-		else:
-			total_amount = self.get("rounded_total") or self.get("grand_total")
-			new_status = "Fully Paid" if paid_amount == total_amount else "Partially Paid"
-
-		if new_status == self.advance_payment_status:
-			return
-
-		self.db_set("advance_payment_status", new_status, update_modified=False)
-		self.set_status(update=True)
-		self.notify_update()
-
 	@property
 	def company_abbr(self):
 		if not hasattr(self, "_abbr"):
diff --git a/erpnext/hooks.py b/erpnext/hooks.py
index ae6a15bfd8d..3fde454e23e 100644
--- a/erpnext/hooks.py
+++ b/erpnext/hooks.py
@@ -354,7 +354,6 @@ doc_events = {
 	"Payment Entry": {
 		"on_submit": [
 			"erpnext.regional.create_transaction_log",
-			"erpnext.accounts.doctype.payment_request.payment_request.update_payment_req_status",
 			"erpnext.accounts.doctype.dunning.dunning.resolve_dunning",
 		],
 		"on_trash": "erpnext.regional.check_deletion_permission",