diff --git a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js
index 7ab7f14902..d224961bd8 100644
--- a/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js
+++ b/erpnext/accounts/doctype/purchase_invoice/purchase_invoice.js
@@ -285,6 +285,7 @@ erpnext.accounts.PurchaseInvoice = erpnext.buying.BuyingController.extend({
 	is_paid: function() {
 		hide_fields(this.frm.doc);
 		if(cint(this.frm.doc.is_paid)) {
+			this.frm.set_value("allocate_advances_automatically", 0);
 			if(!this.frm.doc.company) {
 				this.frm.set_value("is_paid", 0)
 				frappe.msgprint(__("Please specify Company to proceed"));
diff --git a/erpnext/accounts/doctype/sales_invoice/sales_invoice.js b/erpnext/accounts/doctype/sales_invoice/sales_invoice.js
index 90a0ef4639..f21fbd9794 100644
--- a/erpnext/accounts/doctype/sales_invoice/sales_invoice.js
+++ b/erpnext/accounts/doctype/sales_invoice/sales_invoice.js
@@ -369,7 +369,7 @@ erpnext.accounts.SalesInvoiceController = erpnext.selling.SellingController.exte
 
 	set_pos_data: function() {
 		if(this.frm.doc.is_pos) {
-			this.frm.set_value("allocate_advances_automatically", this.frm.doc.is_pos ? 0 : 1);
+			this.frm.set_value("allocate_advances_automatically", 0);
 			if(!this.frm.doc.company) {
 				this.frm.set_value("is_pos", 0);
 				frappe.msgprint(__("Please specify Company to proceed"));
diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index 90dc0861ca..155a996a15 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -89,7 +89,8 @@ class AccountsController(TransactionBase):
 			self.validate_paid_amount()
 
 		if self.doctype in ['Purchase Invoice', 'Sales Invoice']:
-			if cint(self.allocate_advances_automatically) and not cint(self.is_pos):
+			pos_check_field = "is_pos" if self.doctype=="Sales Invoice" else "is_paid"
+			if cint(self.allocate_advances_automatically) and not cint(self.get(pos_check_field)):
 				self.set_advances()
 
 			if self.is_return: