diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
index 816e343fb..10f1c102f 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/service/LoanWritePlatformServiceJpaRepositoryImpl.java
@@ -192,6 +192,7 @@ import org.apache.fineract.portfolio.savings.domain.SavingsAccount;
 import org.apache.fineract.portfolio.transfer.api.TransferApiConstants;
 import org.apache.fineract.useradministration.domain.AppUser;
 import org.springframework.dao.DataIntegrityViolationException;
+import org.springframework.jdbc.core.JdbcTemplate;
 import org.springframework.orm.jpa.JpaSystemException;
 import org.springframework.stereotype.Service;
 import org.springframework.transaction.annotation.Transactional;
@@ -245,6 +246,7 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
     private final ExternalIdFactory externalIdFactory;
     private final ReplayedTransactionBusinessEventService replayedTransactionBusinessEventService;
     private final LoanAccrualTransactionBusinessEventService loanAccrualTransactionBusinessEventService;
+    private final JdbcTemplate jdbcTemplate;
 
     @Transactional
     @Override
@@ -484,6 +486,15 @@ public class LoanWritePlatformServiceJpaRepositoryImpl implements LoanWritePlatf
                     && loanCharge.isChargePending()) {
                 disBuLoanCharges.put(loanCharge.getId(), loanCharge.amountOutstanding());
             }
+            if (loanCharge.isDisbursementCharge()) {
+                String transactionSql = "INSERT INTO m_loan_transaction  (loan_id,office_id,is_reversed,transaction_type_enum,transaction_date,amount,"
+                        + "fee_charges_portion_derived, submitted_on_date, created_by, last_modified_by, created_on_utc, last_modified_on_utc) "
+                        + "VALUES (?, ?, false, ?, ?, ?, ?, ?, ?, ?, ?, ?)";
+                AppUser user = context.authenticatedUser();
+                jdbcTemplate.update(transactionSql, loanId, loan.getOfficeId(), LoanTransactionType.ACCRUAL.getValue(),
+                        actualDisbursementDate, loanCharge.amount(), loanCharge.amount(), DateUtils.getBusinessLocalDate(), user.getId(),
+                        user.getId(), DateUtils.getOffsetDateTimeOfTenant(), DateUtils.getOffsetDateTimeOfTenant());
+            }
         }
 
         final Locale locale = command.extractLocale();
diff --git a/integration-tests/src/test/java/org/apache/fineract/integrationtests/ClientLoanIntegrationTest.java b/integration-tests/src/test/java/org/apache/fineract/integrationtests/ClientLoanIntegrationTest.java
index b204a2e88..68c2444ff 100644
--- a/integration-tests/src/test/java/org/apache/fineract/integrationtests/ClientLoanIntegrationTest.java
+++ b/integration-tests/src/test/java/org/apache/fineract/integrationtests/ClientLoanIntegrationTest.java
@@ -46,6 +46,7 @@ import java.util.Arrays;
 import java.util.Calendar;
 import java.util.Date;
 import java.util.HashMap;
+import java.util.LinkedHashMap;
 import java.util.List;
 import java.util.Locale;
 import java.util.Map;
@@ -3050,6 +3051,8 @@ public class ClientLoanIntegrationTest {
                 JsonPath.from(loanDetails).get("netDisbursalAmount").toString());
         LoanStatusChecker.verifyLoanIsActive(loanStatusHashMap);
 
+        ArrayList<HashMap> loanTransactionDetails = loanTransactionHelper.getLoanTransactionDetails(requestSpec, responseSpec, loanID);
+        validateAccrualTransactionForDisbursementCharge(loanTransactionDetails);
         final JournalEntry[] assetAccountInitialEntry = { new JournalEntry(Float.parseFloat("120.00"), JournalEntry.TransactionType.DEBIT),
                 new JournalEntry(Float.parseFloat("12000.00"), JournalEntry.TransactionType.CREDIT),
                 new JournalEntry(Float.parseFloat("12000.00"), JournalEntry.TransactionType.DEBIT) };
@@ -4744,6 +4747,16 @@ public class ClientLoanIntegrationTest {
         LoanStatusChecker.verifyLoanAccountIsClosed(loanStatusHashMap);
     }
 
+    private void validateAccrualTransactionForDisbursementCharge(ArrayList<HashMap> loanTransactionDetails) {
+        List<HashMap> disbursementTransactions = loanTransactionDetails.stream()
+                .filter(transactionDetail -> (Boolean) ((LinkedHashMap) transactionDetail.get("type")).get("repaymentAtDisbursement"))
+                .toList();
+        List<HashMap> accrualTransactions = loanTransactionDetails.stream()
+                .filter(transactionDetail -> (Boolean) ((LinkedHashMap) transactionDetail.get("type")).get("accrual")).toList();
+        assertEquals(disbursementTransactions.size(), accrualTransactions.size(), 1);
+        assertEquals((Float) disbursementTransactions.get(0).get("amount"), (Float) accrualTransactions.get(0).get("amount"));
+    }
+
     private void addRepaymentValues(List<Map<String, Object>> expectedvalues, Calendar todaysDate, int addPeriod, boolean isAddDays,
             String principalDue, String interestDue, String feeChargesDue, String penaltyChargesDue) {
         Map<String, Object> values = new HashMap<>(3);