diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index 2e261fbab50..0c52a86ca39 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -433,3 +433,4 @@ erpnext.patches.v15_0.remove_sales_partner_from_consolidated_sales_invoice
 erpnext.patches.v15_0.update_uae_zero_rated_fetch
 erpnext.patches.v15_0.add_company_payment_gateway_account
 erpnext.patches.v16_0.update_serial_no_reference_name
+erpnext.patches.v16_0.set_invoice_type_in_pos_settings
diff --git a/erpnext/patches/v16_0/set_invoice_type_in_pos_settings.py b/erpnext/patches/v16_0/set_invoice_type_in_pos_settings.py
new file mode 100644
index 00000000000..60ef95ece6c
--- /dev/null
+++ b/erpnext/patches/v16_0/set_invoice_type_in_pos_settings.py
@@ -0,0 +1,6 @@
+import frappe
+
+
+def execute():
+	if not frappe.db.get_single_value("POS Settings", "invoice_type"):
+		frappe.db.set_single_value("POS Settings", "invoice_type", "POS Invoice")