diff --git a/addons/account/tests/test_account_move_in_invoice.py b/addons/account/tests/test_account_move_in_invoice.py
index f5cd4d62265..362ff08caa1 100644
--- a/addons/account/tests/test_account_move_in_invoice.py
+++ b/addons/account/tests/test_account_move_in_invoice.py
@@ -2407,8 +2407,8 @@ class TestAccountMoveInInvoiceOnchanges(AccountTestInvoicingCommon):
                         Command.update(line.id, {'balance': amount}),
                     ],
                 })
-
-            reverse_move.action_post()
+            if reverse_move.state == 'draft':
+                reverse_move.action_post()
 
         def create_statement_line(move, amount):
             statement_line = self.env['account.bank.statement.line'].create({
diff --git a/addons/account/tests/test_account_payment.py b/addons/account/tests/test_account_payment.py
index 9f47a53d4b5..9249eedc2a4 100644
--- a/addons/account/tests/test_account_payment.py
+++ b/addons/account/tests/test_account_payment.py
@@ -1,4 +1,5 @@
 # -*- coding: utf-8 -*-
+from odoo import Command
 from odoo.addons.account.tests.common import AccountTestInvoicingCommon
 from odoo.tests import tagged, new_test_user
 from odoo.tests.common import Form
@@ -859,6 +860,30 @@ class TestAccountPayment(AccountTestInvoicingCommon):
             'is_matched': True,
         }])
 
+    def test_reconciliation_payment_states_reverse_payment_move(self):
+        invoice = self.env['account.move'].create({
+            'move_type': 'out_invoice',
+            'partner_id': self.partner_a.id,
+            'invoice_line_ids': [Command.create({'product_id': self.product_a.id})],
+        })
+        invoice.action_post()
+
+        payment = self.env['account.payment.register']\
+            .with_context(active_model='account.move', active_ids=invoice.ids)\
+            .create({})\
+            ._create_payments()
+
+        self.assertTrue(invoice.payment_state in ('paid', 'in_payment'))
+        self.assertRecordValues(payment, [{'reconciled_invoice_ids': invoice.ids}])
+
+        # Reverse the payment move
+        reversal_wizard = self.env['account.move.reversal']\
+            .with_context(active_model='account.move', active_ids=payment.move_id.ids)\
+            .create({'reason': "oopsie", 'journal_id': payment.journal_id.id})
+        reversal_wizard.refund_moves()
+        self.assertRecordValues(invoice, [{'payment_state': 'not_paid'}])
+        self.assertRecordValues(payment.line_ids, [{'reconciled': True}] * 2)
+
     def test_payment_name(self):
         AccountPayment = self.env['account.payment']
         AccountPayment.search([]).unlink()
diff --git a/addons/account/wizard/account_move_reversal.py b/addons/account/wizard/account_move_reversal.py
index 0306b567c54..4e7af6a8776 100644
--- a/addons/account/wizard/account_move_reversal.py
+++ b/addons/account/wizard/account_move_reversal.py
@@ -118,7 +118,7 @@ class AccountMoveReversal(models.TransientModel):
         ]
         for move, default_vals in zip(moves, default_values_list):
             is_auto_post = default_vals.get('auto_post') != 'no'
-            is_cancel_needed = not is_auto_post and is_modify
+            is_cancel_needed = not is_auto_post and (is_modify or self.move_type == 'entry')
             batch_index = 0 if is_cancel_needed else 1
             batches[batch_index][0] |= move
             batches[batch_index][1].append(default_vals)
diff --git a/addons/account/wizard/account_move_reversal_view.xml b/addons/account/wizard/account_move_reversal_view.xml
index 8bdc473539c..2ca91a33216 100644
--- a/addons/account/wizard/account_move_reversal_view.xml
+++ b/addons/account/wizard/account_move_reversal_view.xml
@@ -18,7 +18,7 @@
                     </group>
                     <footer>
                         <button string='Reverse' name="refund_moves" type="object" class="btn-primary" data-hotkey="q"/>
-                        <button string="Reverse and Create Invoice" name="modify_moves" type="object" class="btn-secondary"/>
+                        <button string="Reverse and Create Invoice" name="modify_moves" type="object" class="btn-secondary" invisible="move_type  == 'entry'"/>
                         <button string="Discard" class="btn-secondary" special="cancel" data-hotkey="x"/>
                     </footer>
                </form>