diff --git a/models/baseModels/Item/Item.ts b/models/baseModels/Item/Item.ts
index 351bf5b57..653230355 100644
--- a/models/baseModels/Item/Item.ts
+++ b/models/baseModels/Item/Item.ts
@@ -58,16 +58,28 @@ export class Item extends Doc {
   };
 
   static filters: FiltersMap = {
-    incomeAccount: () => ({
-      isGroup: false,
-      rootType: AccountRootTypeEnum.Income,
-    }),
-    expenseAccount: (doc) => ({
-      isGroup: false,
-      rootType: doc.trackItem
-        ? AccountRootTypeEnum.Liability
-        : AccountRootTypeEnum.Expense,
-    }),
+    incomeAccount: (doc) => {
+      if (doc.fyo.singles.AccountingSettings?.itemAccountFiltering) {
+        return {
+          isGroup: false,
+          rootType: AccountRootTypeEnum.Income
+        }
+      } else {
+        return {isGroup: false}
+      }
+    },
+    expenseAccount: (doc) => {
+      if (doc.fyo.singles.AccountingSettings?.itemAccountFiltering) {
+        return {
+          isGroup: false,
+          rootType: doc.trackItem
+            ? AccountRootTypeEnum.Liability
+            : AccountRootTypeEnum.Expense
+        }
+      } else {
+        return {isGroup: false}
+      }
+    },
   };
 
   validations: ValidationMap = {
diff --git a/schemas/app/AccountingSettings.json b/schemas/app/AccountingSettings.json
index 469979928..d0ce5ebef 100644
--- a/schemas/app/AccountingSettings.json
+++ b/schemas/app/AccountingSettings.json
@@ -100,6 +100,13 @@
       "default": false,
       "section": "Features"
     },
+    {
+      "fieldname": "itemAccountFiltering",
+      "label": "Filter out non expense accounts for items",
+      "fieldtype": "Check",
+      "default": true,
+      "section": "Features"
+    },
     {
       "fieldname": "fiscalYearStart",
       "label": "Fiscal Year Start Date",