diff --git a/addons/account/models/account_move.py b/addons/account/models/account_move.py
index 60a05b4dec3..289c2b71aeb 100644
--- a/addons/account/models/account_move.py
+++ b/addons/account/models/account_move.py
@@ -38,6 +38,14 @@ def calc_check_digits(number):
     checksum = int(number_base10) % 97
     return '%02d' % ((98 - 100 * checksum) % 97)
 
+PAYMENT_STATE_SELECTION = [
+        ('not_paid', 'Not Paid'),
+        ('in_payment', 'In Payment'),
+        ('paid', 'Paid'),
+        ('partial', 'Partially Paid'),
+        ('reversed', 'Reversed'),
+        ('invoicing_legacy', 'Invoicing App Legacy'),
+]
 
 class AccountMove(models.Model):
     _name = "account.move"
@@ -233,15 +241,8 @@ class AccountMove(models.Model):
     amount_by_group = fields.Binary(string="Tax amount by group",
         compute='_compute_invoice_taxes_by_group',
         help='Edit Tax amounts if you encounter rounding issues.')
-    payment_state = fields.Selection(selection=[
-        ('not_paid', 'Not Paid'),
-        ('in_payment', 'In Payment'),
-        ('paid', 'Paid'),
-        ('partial', 'Partially Paid'),
-        ('reversed', 'Reversed'),
-        ('invoicing_legacy', 'Invoicing App Legacy')],
-        string="Payment Status", store=True, readonly=True, copy=False, tracking=True,
-        compute='_compute_amount')
+    payment_state = fields.Selection(PAYMENT_STATE_SELECTION, string="Payment Status", store=True,
+        readonly=True, copy=False, tracking=True, compute='_compute_amount')
 
     # ==== Cash basis feature fields ====
     tax_cash_basis_rec_id = fields.Many2one(
@@ -1271,7 +1272,7 @@ class AccountMove(models.Model):
                 if line.currency_id and line in move._get_lines_onchange_currency():
                     currencies.add(line.currency_id)
 
-                if move.is_invoice(include_receipts=True):
+                if move._payment_state_matters():
                     # === Invoices ===
 
                     if not line.exclude_from_invoice_tab:
@@ -1315,8 +1316,7 @@ class AccountMove(models.Model):
             # Compute 'payment_state'.
             new_pmt_state = 'not_paid' if move.move_type != 'entry' else False
 
-            if move.is_invoice(include_receipts=True) and move.state == 'posted':
-
+            if move._payment_state_matters() and move.state == 'posted':
                 if currency.is_zero(move.amount_residual):
                     reconciled_payments = move._get_reconciled_payments()
                     if not reconciled_payments or all(payment.is_matched for payment in reconciled_payments):
@@ -2024,6 +2024,13 @@ class AccountMove(models.Model):
     def get_invoice_types(self, include_receipts=False):
         return ['out_invoice', 'out_refund', 'in_refund', 'in_invoice'] + (include_receipts and ['out_receipt', 'in_receipt'] or [])
 
+    def _payment_state_matters(self):
+        ''' Determines when new_pmt_state must be upated.
+        Method created to allow overrides.
+        :return: Boolean '''
+        self.ensure_one()
+        return self.is_invoice(include_receipts=True)
+
     def is_invoice(self, include_receipts=False):
         return self.move_type in self.get_invoice_types(include_receipts)
 
diff --git a/addons/hr_expense/models/account_move_line.py b/addons/hr_expense/models/account_move_line.py
index ae80e369220..11f8f0d4bac 100644
--- a/addons/hr_expense/models/account_move_line.py
+++ b/addons/hr_expense/models/account_move_line.py
@@ -3,6 +3,15 @@
 
 from odoo import api, fields, models
 
+class AccountMove(models.Model):
+    _inherit = "account.move"
+
+    def _payment_state_matters(self):
+        self.ensure_one()
+        if self.line_ids.expense_id:
+            return True
+        return super()._payment_state_matters()
+
 
 class AccountMoveLine(models.Model):
     _inherit = "account.move.line"
diff --git a/addons/hr_expense/models/hr_expense.py b/addons/hr_expense/models/hr_expense.py
index e64a4c08c48..a1dfe97f743 100644
--- a/addons/hr_expense/models/hr_expense.py
+++ b/addons/hr_expense/models/hr_expense.py
@@ -2,10 +2,10 @@
 # Part of Odoo. See LICENSE file for full copyright and licensing details.
 
 import re
-
 from odoo import api, fields, models, _
 from odoo.exceptions import UserError, ValidationError
 from odoo.tools import email_split, float_is_zero, float_repr
+from odoo.addons.account.models.account_move import PAYMENT_STATE_SELECTION
 
 
 class HrExpense(models.Model):
@@ -538,6 +538,7 @@ Or send your receipts at <a href="mailto:%(email)s?subject=Lunch%%20with%%20cust
                 'currency_id': expense.currency_id.id,
                 'expense_id': expense.id,
                 'partner_id': partner_id,
+                'exclude_from_invoice_tab': True,
             }
             move_line_values.append(move_line_dst)
 
@@ -828,9 +829,11 @@ class HrExpenseSheet(models.Model):
         ('submit', 'Submitted'),
         ('approve', 'Approved'),
         ('post', 'Posted'),
-        ('done', 'Paid'),
+        ('done', 'Done'),
         ('cancel', 'Refused')
     ], string='Status', index=True, readonly=True, tracking=True, copy=False, default='draft', required=True, help='Expense Report State')
+    payment_state = fields.Selection(selection=PAYMENT_STATE_SELECTION, string="Payment Status",
+        store=True, readonly=True, copy=False, tracking=True, compute='_compute_payment_state')
     employee_id = fields.Many2one('hr.employee', string="Employee", required=True, readonly=True, tracking=True, states={'draft': [('readonly', False)]}, default=_default_employee_id, check_company=True, domain= lambda self: self.env['hr.expense']._get_employee_id_domain())
     address_id = fields.Many2one('res.partner', compute='_compute_from_employee_id', store=True, readonly=False, copy=True, string="Employee Home Address", check_company=True)
     payment_mode = fields.Selection(related='expense_line_ids.payment_mode', default='own_account', readonly=True, string="Paid By", tracking=True)
@@ -839,7 +842,7 @@ class HrExpenseSheet(models.Model):
     amount_residual = fields.Monetary(
         string="Amount Due", store=True,
         currency_field='currency_id',
-        compute='_compute_amount_residual')
+        related='account_move_id.amount_residual')
     company_id = fields.Many2one('res.company', string='Company', required=True, readonly=True, states={'draft': [('readonly', False)]}, default=lambda self: self.env.company)
     currency_id = fields.Many2one('res.currency', string='Currency', readonly=True, states={'draft': [('readonly', False)]}, default=lambda self: self.env.company.currency_id)
     attachment_number = fields.Integer(compute='_compute_attachment_number', string='Number of Attachments')
@@ -863,21 +866,10 @@ class HrExpenseSheet(models.Model):
         for sheet in self:
             sheet.total_amount = sum(sheet.expense_line_ids.mapped('total_amount_company'))
 
-    @api.depends(
-        'currency_id',
-        'account_move_id.line_ids.amount_residual',
-        'account_move_id.line_ids.amount_residual_currency',
-        'account_move_id.line_ids.account_internal_type',)
-    def _compute_amount_residual(self):
+    @api.depends('account_move_id.payment_state')
+    def _compute_payment_state(self):
         for sheet in self:
-            if sheet.currency_id == sheet.company_id.currency_id:
-                residual_field = 'amount_residual'
-            else:
-                residual_field = 'amount_residual_currency'
-
-            payment_term_lines = sheet.account_move_id.line_ids\
-                .filtered(lambda line: line.account_internal_type in ('receivable', 'payable'))
-            sheet.amount_residual = -sum(payment_term_lines.mapped(residual_field))
+            sheet.payment_state = sheet.account_move_id.payment_state or 'not_paid'
 
     def _compute_attachment_number(self):
         for sheet in self:
@@ -977,7 +969,7 @@ class HrExpenseSheet(models.Model):
             raise UserError(_("You can only generate accounting entry for approved expense(s)."))
 
         if any(not sheet.journal_id for sheet in self):
-            raise UserError(_("Expenses must have an expense journal specified to generate accounting entries."))
+            raise UserError(_("Specify expense journal in tab Other Info to generate accounting entries."))
 
         expense_line_ids = self.mapped('expense_line_ids')\
             .filtered(lambda r: not float_is_zero(r.total_amount, precision_rounding=(r.currency_id or self.env.company.currency_id).rounding))
diff --git a/addons/hr_expense/tests/test_expenses.py b/addons/hr_expense/tests/test_expenses.py
index 9cf10b651bf..7c97e68df4c 100644
--- a/addons/hr_expense/tests/test_expenses.py
+++ b/addons/hr_expense/tests/test_expenses.py
@@ -8,6 +8,61 @@ from odoo import fields
 @tagged('-at_install', 'post_install')
 class TestExpenses(TestExpenseCommon):
 
+    def test_expense_sheet_payment_state(self):
+        ''' Test expense sheet payment states when partially paid, in payment and paid. '''
+
+        def get_payment(expense_sheet, amount):
+            ctx = {'active_model': 'account.move', 'active_ids': expense_sheet.account_move_id.ids}
+            payment_register = self.env['account.payment.register'].with_context(**ctx).create({
+                'amount': amount,
+                'journal_id': self.company_data['default_journal_bank'].id,
+                'payment_method_id': self.env.ref('account.account_payment_method_manual_in').id,
+            })
+            return payment_register._create_payments()
+
+        expense_sheet = self.env['hr.expense.sheet'].create({
+            'name': 'Expense for John Smith',
+            'employee_id': self.expense_employee.id,
+            'accounting_date': '2021-01-01',
+            'expense_line_ids': [(0, 0, {
+                'name': 'Car Travel Expenses',
+                'employee_id': self.expense_employee.id,
+                'product_id': self.product_a.id,
+                'unit_amount': 350.00,
+            })]
+        })
+
+        expense_sheet.action_submit_sheet()
+        expense_sheet.approve_expense_sheets()
+        expense_sheet.action_sheet_move_create()
+
+        payment = get_payment(expense_sheet, 100.0)
+        liquidity_lines1 = payment._seek_for_lines()[0]
+
+        self.assertEqual(expense_sheet.payment_state, 'partial', 'payment_state should be partial')
+
+        payment = get_payment(expense_sheet, 250.0)
+        liquidity_lines2 = payment._seek_for_lines()[0]
+
+        in_payment_state = expense_sheet.account_move_id._get_invoice_in_payment_state()
+        self.assertEqual(expense_sheet.payment_state, in_payment_state, 'payment_state should be ' + in_payment_state)
+
+        statement = self.env['account.bank.statement'].create({
+            'name': 'test_statement',
+            'journal_id': self.company_data['default_journal_bank'].id,
+            'line_ids': [
+                (0, 0, {
+                    'payment_ref': 'pay_ref',
+                    'amount': -350.0,
+                    'partner_id': self.expense_employee.address_home_id.id,
+                }),
+            ],
+        })
+        statement.button_post()
+        statement.line_ids.reconcile([{'id': liquidity_lines1.id}, {'id': liquidity_lines2.id}])
+
+        self.assertEqual(expense_sheet.payment_state, 'paid', 'payment_state should be paid')
+
     def test_expense_values(self):
         """ Checking accounting move entries and analytic entries when submitting expense """
 
diff --git a/addons/hr_expense/views/hr_expense_views.xml b/addons/hr_expense/views/hr_expense_views.xml
index a1ef7628db9..d149ac8c30a 100644
--- a/addons/hr_expense/views/hr_expense_views.xml
+++ b/addons/hr_expense/views/hr_expense_views.xml
@@ -625,6 +625,7 @@
                     <field name="currency_id" optional="hide"/>
                     <field name="journal_id" optional="hide"/>
                     <field name="state" optional="show" decoration-info="state == 'draft'" decoration-success="state in ['submit', 'approve', 'post', 'done']" decoration-danger="state == 'cancel'" widget="badge"/>
+                    <field name="payment_state" optional="show" decoration-info="payment_state in ('partial','in_payment')" decoration-success="payment_state == 'paid'" decoration-danger="payment_state in ('reversed','not_paid')" widget="badge"/>
                     <field name="message_unread" invisible="1"/>
                 </tree>
             </field>
@@ -698,7 +699,11 @@
                             <field name="attachment_number" widget="statinfo" string="Documents"/>
                         </button>
                     </div>
-                    <widget name="web_ribbon" title="Paid" bg_color="bg-success" attrs="{'invisible': [('state', '!=', 'done')]}"/>
+                    <field name="payment_state" invisible="True"/>
+                    <widget name="web_ribbon" title="Paid" bg_color="bg-success" attrs="{'invisible': [('payment_state', '!=', 'paid')]}"/>
+                    <widget name="web_ribbon" title="Partial" bg_color="bg-info" attrs="{'invisible': [('payment_state', '!=', 'partial')]}"/>
+                    <widget name="web_ribbon" title="Reversed" bg_color="bg-danger" attrs="{'invisible': [('payment_state', '!=', 'reversed')]}"/>
+                    <widget name="web_ribbon" title="In Payment" attrs="{'invisible': [('payment_state', '!=', 'in_payment')]}"/>
                     <div class="oe_title">
                         <label for="name"/>
                         <h1>