diff --git a/src/app/products/loan-products/loan-product-stepper/loan-product-accounting-step/loan-product-accounting-step.component.html b/src/app/products/loan-products/loan-product-stepper/loan-product-accounting-step/loan-product-accounting-step.component.html
index 01f0cb49a..fbae08c49 100644
--- a/src/app/products/loan-products/loan-product-stepper/loan-product-accounting-step/loan-product-accounting-step.component.html
+++ b/src/app/products/loan-products/loan-product-stepper/loan-product-accounting-step/loan-product-accounting-step.component.html
@@ -264,7 +264,10 @@
       </mifosx-gl-account-selector>
 
       <mifosx-gl-account-selector
-        *ngIf="deferredIncomeRecognition?.capitalizedIncome?.enableIncomeCapitalization"
+        *ngIf="
+          deferredIncomeRecognition?.capitalizedIncome?.enableIncomeCapitalization ||
+          deferredIncomeRecognition?.buyDownFee?.enableBuyDownFee
+        "
         class="flex-48"
         [inputFormControl]="loanProductAccountingForm.controls.deferredIncomeLiabilityAccountId"
         [glAccountList]="liabilityAccountData"
diff --git a/src/app/products/loan-products/loan-product-stepper/loan-product-accounting-step/loan-product-accounting-step.component.ts b/src/app/products/loan-products/loan-product-stepper/loan-product-accounting-step/loan-product-accounting-step.component.ts
index 4fce2bbad..aa081582d 100644
--- a/src/app/products/loan-products/loan-product-stepper/loan-product-accounting-step/loan-product-accounting-step.component.ts
+++ b/src/app/products/loan-products/loan-product-stepper/loan-product-accounting-step/loan-product-accounting-step.component.ts
@@ -157,6 +157,7 @@ export class LoanProductAccountingStepComponent implements OnInit, OnChanges {
           }
           if (this.deferredIncomeRecognition.buyDownFee.enableBuyDownFee) {
             this.loanProductAccountingForm.patchValue({
+              deferredIncomeLiabilityAccountId: accountingMappings.deferredIncomeLiabilityAccount.id,
               buyDownExpenseAccountId: accountingMappings.buyDownExpenseAccount.id,
               incomeFromBuyDownAccountId: accountingMappings.incomeFromBuyDownAccount.id
             });
@@ -600,17 +601,23 @@ export class LoanProductAccountingStepComponent implements OnInit, OnChanges {
   setDeferredIncomeRecognitionControls() {
     if (this.isAccountingAccrualBased) {
       if (this.deferredIncomeRecognition) {
-        if (this.deferredIncomeRecognition.capitalizedIncome.enableIncomeCapitalization) {
+        if (
+          this.deferredIncomeRecognition.capitalizedIncome.enableIncomeCapitalization ||
+          this.deferredIncomeRecognition.buyDownFee.enableBuyDownFee
+        ) {
           this.loanProductAccountingForm.addControl(
             'deferredIncomeLiabilityAccountId',
             new UntypedFormControl('', Validators.required)
           );
+        } else {
+          this.loanProductAccountingForm.removeControl('deferredIncomeLiabilityAccountId');
+        }
+        if (this.deferredIncomeRecognition.capitalizedIncome.enableIncomeCapitalization) {
           this.loanProductAccountingForm.addControl(
             'incomeFromCapitalizationAccountId',
             new UntypedFormControl('', Validators.required)
           );
         } else {
-          this.loanProductAccountingForm.removeControl('deferredIncomeLiabilityAccountId');
           this.loanProductAccountingForm.removeControl('incomeFromCapitalizationAccountId');
         }
         if (this.deferredIncomeRecognition.buyDownFee.enableBuyDownFee) {