diff --git a/erpnext/accounts/party.py b/erpnext/accounts/party.py
index b6eb3ed..01cfb58 100644
--- a/erpnext/accounts/party.py
+++ b/erpnext/accounts/party.py
@@ -550,7 +550,7 @@
 		elif term.due_date_based_on == "Day(s) after the end of the invoice month":
 			due_date = max(due_date, add_days(get_last_day(due_date), term.credit_days))
 		else:
-			due_date = max(due_date, add_months(get_last_day(due_date), term.credit_months))
+			due_date = max(due_date, get_last_day(add_months(due_date, term.credit_months)))
 	return due_date
 
 
diff --git a/erpnext/buying/doctype/purchase_order/test_purchase_order.py b/erpnext/buying/doctype/purchase_order/test_purchase_order.py
index f0360b2..3c08d53 100644
--- a/erpnext/buying/doctype/purchase_order/test_purchase_order.py
+++ b/erpnext/buying/doctype/purchase_order/test_purchase_order.py
@@ -23,6 +23,7 @@
 from erpnext.stock.doctype.purchase_receipt.purchase_receipt import (
 	make_purchase_invoice as make_pi_from_pr,
 )
+from erpnext.accounts.party import get_due_date_from_template
 
 
 class TestPurchaseOrder(FrappeTestCase):
@@ -685,6 +686,10 @@
 			else:
 				raise Exception
 
+	def test_default_payment_terms(self):
+		due_date = get_due_date_from_template("_Test Payment Term Template 1", "2023-02-03")
+		self.assertEqual(due_date, "2023-03-31")
+
 	def test_terms_are_not_copied_if_automatically_fetch_payment_terms_is_unchecked(self):
 		po = create_purchase_order(do_not_save=1)
 		po.payment_terms_template = "_Test Payment Term Template"