diff --git a/erpnext/buying/doctype/purchase_order/test_purchase_order.py b/erpnext/buying/doctype/purchase_order/test_purchase_order.py
index 17786aa..1bfc9cb 100644
--- a/erpnext/buying/doctype/purchase_order/test_purchase_order.py
+++ b/erpnext/buying/doctype/purchase_order/test_purchase_order.py
@@ -5,8 +5,9 @@
 import unittest
 import frappe
 import frappe.defaults
-from frappe.utils import flt, add_days, nowdate
+from frappe.utils import flt, add_days, nowdate, DATE_FORMAT
 from erpnext.buying.doctype.purchase_order.purchase_order import make_purchase_receipt, make_purchase_invoice
+from erpnext.controllers.accounts_controller import get_payment_terms
 
 class TestPurchaseOrder(unittest.TestCase):
 	def test_make_purchase_receipt(self):
@@ -83,6 +84,34 @@
 		self.assertEquals(pi.doctype, "Purchase Invoice")
 		self.assertEquals(len(pi.get("items", [])), 1)
 
+	def test_make_purchase_invoice_with_terms(self):
+		po = create_purchase_order(do_not_submit=True)
+
+		self.assertRaises(frappe.ValidationError, make_purchase_invoice, po.name)
+
+		po.update(
+			{"payment_schedule": get_payment_terms(
+				"_Test Payment Term Template", po.transaction_date, po.grand_total
+			)}
+		)
+
+		po.save()
+		po.submit()
+
+		self.assertEqual(po.payment_schedule[0].payment_amount, 2500.0)
+		self.assertEqual(po.payment_schedule[0].due_date, po.transaction_date)
+		self.assertEqual(po.payment_schedule[1].payment_amount, 2500.0)
+		self.assertEqual(po.payment_schedule[1].due_date, add_days(po.transaction_date, 30))
+		pi = make_purchase_invoice(po.name)
+
+		self.assertEquals(pi.doctype, "Purchase Invoice")
+		self.assertEquals(len(pi.get("items", [])), 1)
+
+		self.assertEqual(pi.payment_schedule[0].payment_amount, 2500.0)
+		self.assertEqual(pi.payment_schedule[0].due_date.strftime(DATE_FORMAT), po.transaction_date)
+		self.assertEqual(pi.payment_schedule[1].payment_amount, 2500.0)
+		self.assertEqual(pi.payment_schedule[1].due_date.strftime(DATE_FORMAT), add_days(po.transaction_date, 30))
+
 	def test_subcontracting(self):
 		po = create_purchase_order(item_code="_Test FG Item", is_subcontracted="Yes")
 		self.assertEquals(len(po.get("supplied_items")), 2)
diff --git a/erpnext/selling/doctype/quotation/test_quotation.py b/erpnext/selling/doctype/quotation/test_quotation.py
index 457ba1a..f40a4ca 100644
--- a/erpnext/selling/doctype/quotation/test_quotation.py
+++ b/erpnext/selling/doctype/quotation/test_quotation.py
@@ -3,7 +3,7 @@
 from __future__ import unicode_literals
 
 import frappe
-from frappe.utils import flt, add_days, nowdate, add_months
+from frappe.utils import flt, add_days, nowdate, add_months, DATE_FORMAT
 from erpnext.controllers.accounts_controller import get_payment_terms
 import unittest
 
@@ -62,6 +62,10 @@
 		self.assertEquals(sales_order.get("items")[0].doctype, "Sales Order Item")
 		self.assertEquals(sales_order.get("items")[0].prevdoc_docname, quotation.name)
 		self.assertEquals(sales_order.customer, "_Test Customer")
+		self.assertEqual(sales_order.payment_schedule[0].payment_amount, 8906.25)
+		self.assertEqual(sales_order.payment_schedule[0].due_date.strftime(DATE_FORMAT), quotation.transaction_date)
+		self.assertEqual(sales_order.payment_schedule[1].payment_amount, 8906.25)
+		self.assertEqual(sales_order.payment_schedule[1].due_date.strftime(DATE_FORMAT), add_days(quotation.transaction_date, 30))
 
 		sales_order.delivery_date = "2014-01-01"
 		sales_order.naming_series = "_T-Quotation-"
diff --git a/erpnext/selling/doctype/sales_order/test_sales_order.py b/erpnext/selling/doctype/sales_order/test_sales_order.py
index 7c0d7f9..ff6166d 100644
--- a/erpnext/selling/doctype/sales_order/test_sales_order.py
+++ b/erpnext/selling/doctype/sales_order/test_sales_order.py
@@ -2,13 +2,14 @@
 # License: GNU General Public License v3. See license.txt
 from __future__ import unicode_literals
 import frappe
-from frappe.utils import flt, add_days
+from frappe.utils import flt, add_days, DATE_FORMAT
 import frappe.permissions
 import unittest
 from erpnext.stock.doctype.item.test_item import get_total_projected_qty
 from erpnext.selling.doctype.sales_order.sales_order \
 	import make_material_request, make_delivery_note, make_sales_invoice, WarehouseRequired
 from erpnext.stock.doctype.stock_entry.stock_entry_utils import make_stock_entry
+from erpnext.controllers.accounts_controller import get_payment_terms
 from frappe.tests.test_permissions import set_user_permission_doctypes
 
 class TestSalesOrder(unittest.TestCase):
@@ -58,6 +59,35 @@
 		si1 = make_sales_invoice(so.name)
 		self.assertEquals(len(si1.get("items")), 0)
 
+	def test_make_sales_invoice_with_terms(self):
+		so = make_sales_order(do_not_submit=True)
+
+		self.assertRaises(frappe.ValidationError, make_sales_invoice, so.name)
+
+		so.update(
+			{"payment_schedule": get_payment_terms(
+				"_Test Payment Term Template", so.transaction_date, so.grand_total
+			)}
+		)
+
+		so.save()
+		so.submit()
+		si = make_sales_invoice(so.name)
+
+		self.assertEqual(si.payment_schedule[0].payment_amount, 500.0)
+		self.assertEqual(si.payment_schedule[0].due_date.strftime(DATE_FORMAT), so.transaction_date)
+		self.assertEqual(si.payment_schedule[1].payment_amount, 500.0)
+		self.assertEqual(si.payment_schedule[1].due_date.strftime(DATE_FORMAT), add_days(so.transaction_date, 30))
+
+		self.assertEquals(len(si.get("items")), len(so.get("items")))
+		self.assertEquals(len(si.get("items")), 1)
+
+		si.insert()
+		si.submit()
+
+		si1 = make_sales_invoice(so.name)
+		self.assertEquals(len(si1.get("items")), 0)
+
 	def test_update_qty(self):
 		so = make_sales_order()