diff --git a/accounts/doctype/fiscal_year/test_fiscal_year.py b/accounts/doctype/fiscal_year/test_fiscal_year.py
index e031a19..b209b39 100644
--- a/accounts/doctype/fiscal_year/test_fiscal_year.py
+++ b/accounts/doctype/fiscal_year/test_fiscal_year.py
@@ -10,5 +10,15 @@
 		"doctype": "Fiscal Year",
 		"year": "_Test Fiscal Year 2014", 
 		"year_start_date": "2014-01-01"
-	}]
+	}],
+	[{
+		"doctype": "Fiscal Year",
+		"year": "_Test Fiscal Year 2015", 
+		"year_start_date": "2015-01-01"
+	}],
+	[{
+		"doctype": "Fiscal Year",
+		"year": "_Test Fiscal Year 2016", 
+		"year_start_date": "2016-01-01"
+	}],
 ]
\ No newline at end of file
diff --git a/accounts/doctype/sales_invoice/sales_invoice.py b/accounts/doctype/sales_invoice/sales_invoice.py
index f29c2e9..22ac845 100644
--- a/accounts/doctype/sales_invoice/sales_invoice.py
+++ b/accounts/doctype/sales_invoice/sales_invoice.py
@@ -17,7 +17,9 @@
 from __future__ import unicode_literals
 import webnotes
 
-from webnotes.utils import add_days, cint, cstr, date_diff, flt, getdate, nowdate
+from webnotes.utils import add_days, cint, cstr, date_diff, flt, getdate, nowdate, \
+	get_first_day, get_last_day
+
 from webnotes.utils.email_lib import sendmail
 from webnotes.utils import comma_and
 from webnotes.model.doc import make_autoname
@@ -891,25 +893,18 @@
 		
 		next_date = get_next_date(self.doc.posting_date,
 			month_map[self.doc.recurring_type], cint(self.doc.repeat_on_day_of_month))
+		
 		webnotes.conn.set(self.doc, 'next_date', next_date)
 	
 def get_next_date(dt, mcount, day=None):
-	import datetime
-	month = getdate(dt).month + mcount
-	year = getdate(dt).year
-	if not day:
-		day = getdate(dt).day
-	if month > 12:
-		month, year = month-12, year+1
-	try:
-		next_month_date = datetime.date(year, month, day)
-	except:
-		import calendar
-		last_day = calendar.monthrange(year, month)[1]
-		next_month_date = datetime.date(year, month, last_day)
-	return next_month_date.strftime("%Y-%m-%d")
-
-def manage_recurring_invoices(next_date=None):
+	dt = getdate(dt)
+	
+	from dateutil.relativedelta import relativedelta
+	dt += relativedelta(months=mcount, day=day)
+	
+	return dt
+	
+def manage_recurring_invoices(next_date=None, commit=True):
 	""" 
 		Create recurring invoices on specific date by copying the original one
 		and notify the concerned people
@@ -929,19 +924,22 @@
 				ref_wrapper = webnotes.bean('Sales Invoice', ref_invoice)
 				new_invoice_wrapper = make_new_invoice(ref_wrapper, next_date)
 				send_notification(new_invoice_wrapper)
-				webnotes.conn.commit()
+				if commit:
+					webnotes.conn.commit()
 			except:
-				webnotes.conn.rollback()
+				if commit:
+					webnotes.conn.rollback()
 
-				webnotes.conn.begin()
-				webnotes.conn.sql("update `tabSales Invoice` set \
-					convert_into_recurring_invoice = 0 where name = %s", ref_invoice)
-				notify_errors(ref_invoice, ref_wrapper.doc.owner)
-				webnotes.conn.commit()
+					webnotes.conn.begin()
+					webnotes.conn.sql("update `tabSales Invoice` set \
+						convert_into_recurring_invoice = 0 where name = %s", ref_invoice)
+					notify_errors(ref_invoice, ref_wrapper.doc.owner)
+					webnotes.conn.commit()
 
 				exception_list.append(webnotes.getTraceback())
 			finally:
-				webnotes.conn.begin()
+				if commit:
+					webnotes.conn.begin()
 			
 	if exception_list:
 		exception_message = "\n\n".join([cstr(d) for d in exception_list])
@@ -953,19 +951,27 @@
 	new_invoice = clone(ref_wrapper)
 	
 	mcount = month_map[ref_wrapper.doc.recurring_type]
-		
+	
+	invoice_period_from_date = get_next_date(ref_wrapper.doc.invoice_period_from_date, mcount)
+	
+	# get last day of the month to maintain period if the from date is first day of its own month 
+	# and to date is the last day of its own month
+	if (cstr(get_first_day(ref_wrapper.doc.invoice_period_from_date)) == \
+			cstr(ref_wrapper.doc.invoice_period_from_date)) and \
+		(cstr(get_last_day(ref_wrapper.doc.invoice_period_to_date)) == \
+			cstr(ref_wrapper.doc.invoice_period_to_date)):
+		invoice_period_to_date = get_last_day(get_next_date(ref_wrapper.doc.invoice_period_to_date,
+			mcount))
+	else:
+		invoice_period_to_date = get_next_date(ref_wrapper.doc.invoice_period_to_date, mcount)
+	
 	new_invoice.doc.fields.update({
 		"posting_date": posting_date,
 		"aging_date": posting_date,
-		
 		"due_date": add_days(posting_date, cint(date_diff(ref_wrapper.doc.due_date,
 			ref_wrapper.doc.posting_date))),
-			
-		"invoice_period_from_date": \
-			get_next_date(ref_wrapper.doc.invoice_period_from_date, mcount),
-			
-		"invoice_period_to_date": \
-			get_next_date(ref_wrapper.doc.invoice_period_to_date, mcount),
+		"invoice_period_from_date": invoice_period_from_date,
+		"invoice_period_to_date": invoice_period_to_date,
 		"fiscal_year": get_fiscal_year(posting_date)[0],
 		"owner": ref_wrapper.doc.owner,
 	})
diff --git a/accounts/doctype/sales_invoice/sales_invoice.txt b/accounts/doctype/sales_invoice/sales_invoice.txt
index 35710b4..462565c 100644
--- a/accounts/doctype/sales_invoice/sales_invoice.txt
+++ b/accounts/doctype/sales_invoice/sales_invoice.txt
@@ -1,8 +1,8 @@
 [
  {
-  "creation": "2013-03-12 11:56:25", 
+  "creation": "2013-03-20 17:01:58", 
   "docstatus": 0, 
-  "modified": "2013-03-12 14:31:24", 
+  "modified": "2013-03-20 19:17:38", 
   "modified_by": "Administrator", 
   "owner": "Administrator"
  }, 
@@ -1093,7 +1093,7 @@
   "description": "The day of the month on which auto invoice will be generated e.g. 05, 28 etc ", 
   "doctype": "DocField", 
   "fieldname": "repeat_on_day_of_month", 
-  "fieldtype": "Data", 
+  "fieldtype": "Int", 
   "label": "Repeat on Day of Month", 
   "no_copy": 1, 
   "print_hide": 1
diff --git a/accounts/doctype/sales_invoice/test_sales_invoice.py b/accounts/doctype/sales_invoice/test_sales_invoice.py
index b63642c..92feae8 100644
--- a/accounts/doctype/sales_invoice/test_sales_invoice.py
+++ b/accounts/doctype/sales_invoice/test_sales_invoice.py
@@ -332,7 +332,142 @@
 		
 		self.assertTrue(not webnotes.conn.sql("""select name from `tabJournal Voucher Detail`
 			where against_invoice=%s""", si.doc.name))
+			
+	def test_recurring_invoice(self):
+		from webnotes.utils import now_datetime, get_first_day, get_last_day, add_to_date
+		today = now_datetime().date()
 		
+		base_si = webnotes.bean(copy=test_records[0])
+		base_si.doc.fields.update({
+			"convert_into_recurring_invoice": 1,
+			"recurring_type": "Monthly",
+			"notification_email_address": "test@example.com, test1@example.com, test2@example.com",
+			"repeat_on_day_of_month": today.day,
+			"posting_date": today,
+			"invoice_period_from_date": get_first_day(today),
+			"invoice_period_to_date": get_last_day(today)
+		})
+		
+		# monthly
+		si1 = webnotes.bean(copy=base_si.doclist)
+		si1.insert()
+		si1.submit()
+		self._test_recurring_invoice(si1, True)
+		
+		# monthly without a first and last day period
+		si2 = webnotes.bean(copy=base_si.doclist)
+		si2.doc.fields.update({
+			"invoice_period_from_date": today,
+			"invoice_period_to_date": add_to_date(today, days=30)
+		})
+		si2.insert()
+		si2.submit()
+		self._test_recurring_invoice(si2, False)
+		
+		# quarterly
+		si3 = webnotes.bean(copy=base_si.doclist)
+		si3.doc.fields.update({
+			"recurring_type": "Quarterly",
+			"invoice_period_from_date": get_first_day(today),
+			"invoice_period_to_date": get_last_day(add_to_date(today, months=3))
+		})
+		si3.insert()
+		si3.submit()
+		self._test_recurring_invoice(si3, True)
+		
+		# quarterly without a first and last day period
+		si4 = webnotes.bean(copy=base_si.doclist)
+		si4.doc.fields.update({
+			"recurring_type": "Quarterly",
+			"invoice_period_from_date": today,
+			"invoice_period_to_date": add_to_date(today, months=3)
+		})
+		si4.insert()
+		si4.submit()
+		self._test_recurring_invoice(si4, False)
+		
+		# yearly
+		si5 = webnotes.bean(copy=base_si.doclist)
+		si5.doc.fields.update({
+			"recurring_type": "Yearly",
+			"invoice_period_from_date": get_first_day(today),
+			"invoice_period_to_date": get_last_day(add_to_date(today, years=1))
+		})
+		si5.insert()
+		si5.submit()
+		self._test_recurring_invoice(si5, True)
+		
+		# yearly without a first and last day period
+		si6 = webnotes.bean(copy=base_si.doclist)
+		si6.doc.fields.update({
+			"recurring_type": "Yearly",
+			"invoice_period_from_date": today,
+			"invoice_period_to_date": add_to_date(today, years=1)
+		})
+		si6.insert()
+		si6.submit()
+		self._test_recurring_invoice(si6, False)
+		
+		# change posting date but keep recuring day to be today
+		si7 = webnotes.bean(copy=base_si.doclist)
+		si7.doc.fields.update({
+			"posting_date": add_to_date(today, days=-3)
+		})
+		si7.insert()
+		si7.submit()
+		
+		# setting so that _test function works
+		si7.doc.posting_date = today
+		self._test_recurring_invoice(si7, True)
+			
+	def _test_recurring_invoice(self, base_si, first_and_last_day):
+		from webnotes.utils import add_months, get_last_day, getdate
+		from accounts.doctype.sales_invoice.sales_invoice import manage_recurring_invoices
+		
+		no_of_months = ({"Monthly": 1, "Quarterly": 3, "Yearly": 12})[base_si.doc.recurring_type]
+		
+		def _test(i):
+			self.assertEquals(i+1, webnotes.conn.sql("""select count(*) from `tabSales Invoice`
+				where recurring_id=%s and docstatus=1""", base_si.doc.recurring_id)[0][0])
+				
+			next_date = add_months(base_si.doc.posting_date, no_of_months)
+			
+			manage_recurring_invoices(next_date=next_date, commit=False)
+			
+			recurred_invoices = webnotes.conn.sql("""select name from `tabSales Invoice`
+				where recurring_id=%s and docstatus=1 order by name desc""", base_si.doc.recurring_id)
+			
+			self.assertEquals(i+2, len(recurred_invoices))
+			
+			new_si = webnotes.bean("Sales Invoice", recurred_invoices[0][0])
+			
+			for fieldname in ["convert_into_recurring_invoice", "recurring_type",
+				"repeat_on_day_of_month", "notification_email_address"]:
+					self.assertEquals(base_si.doc.fields.get(fieldname),
+						new_si.doc.fields.get(fieldname))
+
+			self.assertEquals(new_si.doc.posting_date, unicode(next_date))
+			
+			self.assertEquals(new_si.doc.invoice_period_from_date,
+				unicode(add_months(base_si.doc.invoice_period_from_date, no_of_months)))
+			
+			if first_and_last_day:
+				self.assertEquals(new_si.doc.invoice_period_to_date, 
+					unicode(get_last_day(add_months(base_si.doc.invoice_period_to_date,
+						no_of_months))))
+			else:
+				self.assertEquals(new_si.doc.invoice_period_to_date, 
+					unicode(add_months(base_si.doc.invoice_period_to_date, no_of_months)))
+					
+			self.assertEquals(getdate(new_si.doc.posting_date).day, 
+				base_si.doc.repeat_on_day_of_month)
+			
+			return new_si
+		
+		# if yearly, test 3 repetitions, else test 13 repetitions
+		count = no_of_months == 12 and 3 or 13
+		for i in xrange(count):
+			base_si = _test(i)
 		
 test_dependencies = ["Journal Voucher", "POS Setting"]