diff --git a/hrms/hr/doctype/employee_advance/employee_advance.py b/hrms/hr/doctype/employee_advance/employee_advance.py
index ddfba1fbd2..7d1d67f186 100644
--- a/hrms/hr/doctype/employee_advance/employee_advance.py
+++ b/hrms/hr/doctype/employee_advance/employee_advance.py
@@ -103,13 +103,18 @@ def set_total_advance_paid(self):
 		if return_amount != 0:
 			return_amount = flt(return_amount) / flt(self.exchange_rate)
 
-		if flt(paid_amount) > self.advance_amount:
+		precision = self.precision("paid_amount")
+		paid_amount = flt(paid_amount, precision)
+		if paid_amount > flt(self.advance_amount, precision):
 			frappe.throw(
 				_("Row {0}# Paid Amount cannot be greater than requested advance amount"),
 				EmployeeAdvanceOverPayment,
 			)
 
-		if flt(return_amount) > 0 and flt(return_amount) > (self.paid_amount - self.claimed_amount):
+		precision = self.precision("return_amount")
+		return_amount = flt(return_amount, precision)
+
+		if return_amount > 0 and return_amount > flt(self.paid_amount - self.claimed_amount, precision):
 			frappe.throw(_("Return amount cannot be greater than unclaimed amount"))
 
 		self.db_set("paid_amount", paid_amount)
diff --git a/hrms/hr/doctype/employee_advance/test_employee_advance.py b/hrms/hr/doctype/employee_advance/test_employee_advance.py
index 3d46d1c7a3..a042f43fd5 100644
--- a/hrms/hr/doctype/employee_advance/test_employee_advance.py
+++ b/hrms/hr/doctype/employee_advance/test_employee_advance.py
@@ -219,6 +219,45 @@ def test_payment_entry_against_advance(self):
 		self.assertEqual(advance.status, "Unpaid")
 		self.assertEqual(advance.paid_amount, 700)
 
+	def test_precision(self):
+		employee_name = make_employee("_T@employee.advance")
+		advance = make_employee_advance(employee_name)
+		journal_entry = make_journal_entry_for_advance(advance)
+		journal_entry.submit()
+
+		# PARTLY CLAIMED AND RETURNED
+		payable_account = get_payable_account("_Test Company")
+		claim = make_expense_claim(
+			payable_account, 650.35, 619.34, "_Test Company", "Travel Expenses - _TC", do_not_submit=True
+		)
+
+		claim = get_advances_for_claim(claim, advance.name, amount=619.34)
+		claim.save()
+		claim.submit()
+
+		advance.reload()
+		self.assertEqual(advance.status, "Paid")
+
+		entry = make_return_entry(
+			employee=advance.employee,
+			company=advance.company,
+			employee_advance_name=advance.name,
+			return_amount=advance.paid_amount - advance.claimed_amount,
+			advance_account=advance.advance_account,
+			mode_of_payment=advance.mode_of_payment,
+			currency=advance.currency,
+			exchange_rate=advance.exchange_rate,
+		)
+
+		entry = frappe.get_doc(entry)
+		entry.insert()
+		entry.submit()
+
+		advance.reload()
+		# precision is respected
+		self.assertEqual(advance.return_amount, 380.66)
+		self.assertEqual(advance.status, "Partly Claimed and Returned")
+
 
 def make_journal_entry_for_advance(advance):
 	journal_entry = frappe.get_doc(make_bank_entry("Employee Advance", advance.name))