diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index 1ff33c7f7bf..85780501def 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -366,3 +366,5 @@ erpnext.patches.v13_0.education_deprecation_warning
 erpnext.patches.v13_0.requeue_recoverable_reposts
 erpnext.patches.v13_0.create_accounting_dimensions_in_orders
 erpnext.patches.v13_0.set_per_billed_in_return_delivery_note
+erpnext.patches.v13_0.update_employee_advance_status
+
diff --git a/erpnext/patches/v13_0/update_employee_advance_status.py b/erpnext/patches/v13_0/update_employee_advance_status.py
new file mode 100644
index 00000000000..fc9e05e836d
--- /dev/null
+++ b/erpnext/patches/v13_0/update_employee_advance_status.py
@@ -0,0 +1,29 @@
+import frappe
+
+
+def execute():
+	frappe.reload_doc("hr", "doctype", "employee_advance")
+
+	advance = frappe.qb.DocType("Employee Advance")
+	(
+		frappe.qb.update(advance)
+		.set(advance.status, "Returned")
+		.where(
+			(advance.docstatus == 1)
+			& ((advance.return_amount) & (advance.paid_amount == advance.return_amount))
+			& (advance.status == "Paid")
+		)
+	).run()
+
+	(
+		frappe.qb.update(advance)
+		.set(advance.status, "Partly Claimed and Returned")
+		.where(
+			(advance.docstatus == 1)
+			& (
+				(advance.claimed_amount & advance.return_amount)
+				& (advance.paid_amount == (advance.return_amount + advance.claimed_amount))
+			)
+			& (advance.status == "Paid")
+		)
+	).run()