diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/serialization/LoanProductDataValidator.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/serialization/LoanProductDataValidator.java
index 00f8fed6b..3e2b07474 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/serialization/LoanProductDataValidator.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanproduct/serialization/LoanProductDataValidator.java
@@ -259,7 +259,7 @@ public final class LoanProductDataValidator {
 
         // accounting related data validation
         final Integer accountingRuleType = this.fromApiJsonHelper.extractIntegerNamed("accountingRule", element, Locale.getDefault());
-        baseDataValidator.reset().parameter("accountingRule").value(accountingRuleType).notNull().inMinMaxRange(1, 3);
+        baseDataValidator.reset().parameter("accountingRule").value(accountingRuleType).notNull().inMinMaxRange(1, 4);
 
         if (isCashBasedAccounting(accountingRuleType) || isAccrualBasedAccounting(accountingRuleType)) {
 
@@ -556,7 +556,7 @@ public final class LoanProductDataValidator {
         }
 
         final Integer accountingRuleType = this.fromApiJsonHelper.extractIntegerNamed("accountingRule", element, Locale.getDefault());
-        baseDataValidator.reset().parameter("accountingRule").value(accountingRuleType).ignoreIfNull().inMinMaxRange(1, 3);
+        baseDataValidator.reset().parameter("accountingRule").value(accountingRuleType).ignoreIfNull().inMinMaxRange(1, 4);
 
         final Long fundAccountId = this.fromApiJsonHelper.extractLongNamed(LOAN_PRODUCT_ACCOUNTING_PARAMS.FUND_SOURCE.getValue(), element);
         baseDataValidator.reset().parameter(LOAN_PRODUCT_ACCOUNTING_PARAMS.FUND_SOURCE.getValue()).value(fundAccountId).ignoreIfNull()