diff --git a/hrms/hr/doctype/full_and_final_statement/full_and_final_statement.py b/hrms/hr/doctype/full_and_final_statement/full_and_final_statement.py
index 2a465d1ed6..a48c4860b8 100644
--- a/hrms/hr/doctype/full_and_final_statement/full_and_final_statement.py
+++ b/hrms/hr/doctype/full_and_final_statement/full_and_final_statement.py
@@ -8,6 +8,16 @@
 
 
 class FullandFinalStatement(Document):
+	def on_change(self):
+		for payable in self.payables:
+			if payable.component == "Gratuity":
+				gratuity = frappe.get_doc("Gratuity", payable.reference_document)
+				if self.status == "Paid":
+					amount = payable.amount if self.docstatus == 1 else 0
+					gratuity.db_set("paid_amount", amount)
+				if self.docstatus == 2:
+					gratuity.set_status(update=True, cancel=True)
+
 	def before_insert(self):
 		self.get_outstanding_statements()
 
diff --git a/hrms/payroll/doctype/gratuity/gratuity.py b/hrms/payroll/doctype/gratuity/gratuity.py
index de25701a0d..7a3cc56795 100644
--- a/hrms/payroll/doctype/gratuity/gratuity.py
+++ b/hrms/payroll/doctype/gratuity/gratuity.py
@@ -34,7 +34,7 @@ def gratuity_settings(self):
 
 		return self._gratuity_settings
 
-	def set_status(self, update=False):
+	def set_status(self, update=False, cancel=False):
 		status = {"0": "Draft", "1": "Submitted", "2": "Cancelled"}[cstr(self.docstatus or 0)]
 
 		if self.docstatus == 1:
@@ -44,17 +44,24 @@ def set_status(self, update=False):
 			else:
 				status = "Unpaid"
 
-		if update:
-			self.db_set("status", status)
+		if update and self.status != status:
+			if self.status != status:
+				self.db_set("status", status)
 		else:
 			self.status = status
 
+		if cancel and self.docstatus != 2:
+			self.db_set("docstatus", 2)
+
 	def on_submit(self):
 		if self.pay_via_salary_slip:
 			self.create_additional_salary()
 		else:
 			self.create_gl_entries()
 
+	def on_change(self):
+		self.set_status(update=True)
+
 	def on_cancel(self):
 		self.ignore_linked_doctypes = ["GL Entry"]
 		self.create_gl_entries(cancel=True)