diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index 5f7ee4ecbc0..f94c5797fa4 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -436,3 +436,4 @@ erpnext.patches.v8_7.add_more_gst_fields
 erpnext.patches.v8_7.fix_purchase_receipt_status
 erpnext.patches.v8_6.rename_bom_update_tool
 erpnext.patches.v8_10.update_gl_due_date_for_pi_and_si
+erpnext.patches.v8_10.change_default_customer_credit_days
diff --git a/erpnext/patches/v8_10/change_default_customer_credit_days.py b/erpnext/patches/v8_10/change_default_customer_credit_days.py
new file mode 100644
index 00000000000..b016b66fa16
--- /dev/null
+++ b/erpnext/patches/v8_10/change_default_customer_credit_days.py
@@ -0,0 +1,65 @@
+from __future__ import unicode_literals
+import frappe
+
+
+def execute():
+	payment_terms = []
+	customers = []
+	credit_days = frappe.db.sql(
+		"SELECT DISTINCT `credit_days`, `credit_days_based_on`, `customer_name` from "
+		"`tabCustomer` where credit_days_based_on='Fixed Days' or "
+		"credit_days_based_on='Last Day of the Next Month'")
+
+	credit_records = ((record[0], record[1], record[2]) for record in credit_days)
+	for days, based_on, customer_name in credit_records:
+		payment_term = make_payment_term(days, based_on)
+		payment_terms.append('WHEN `customer_name`="%s" THEN "%s"' % (customer_name, payment_term.payment_term_name))
+		customers.append(customer_name)
+		make_template(payment_term)
+
+	begin_query_str = "UPDATE `tabCustomer` SET `payment_terms` = CASE "
+	value_query_str = " ".join(payment_terms)
+	cond_query_str = " ELSE `payment_terms` END WHERE "
+
+	frappe.db.sql(
+		begin_query_str + value_query_str + cond_query_str + '`customer_name` IN %s',
+		(customers,)
+	)
+
+
+def make_template(payment_term):
+	doc = frappe.new_doc('Payment Terms Template Detail')
+	doc.payment_term = payment_term.payment_term_name
+	doc.due_date_based_on = payment_term.due_date_based_on
+	doc.invoice_portion = payment_term.invoice_portion
+	doc.description = payment_term.description
+	doc.credit_days = payment_term.credit_days
+	doc.credit_months = payment_term.credit_months
+
+	template = frappe.new_doc('Payment Terms Template')
+	template.template_name = 'Default Payment Term - {0}'.format(payment_term.payment_term_name)
+	template.terms = [doc]
+	template.save()
+
+
+def make_payment_term(days, based_on):
+	based_on_map = {
+		'Fixed Days': 'Day(s) after invoice date',
+		'Last Day of the Next Month': 'Month(s) after the end of the invoice month'
+	}
+
+	doc = frappe.new_doc('Payment Term')
+	doc.due_date_based_on = based_on_map.get(based_on)
+	doc.invoice_portion = 100
+
+	if based_on == 'Fixed Days':
+		doc.credit_days = days
+		doc.description = 'Net payable within {0} days'.format(days)
+		doc.payment_term_name = 'N{0}'.format(days)
+	else:
+		doc.credit_months = 1
+		doc.description = 'Net payable by the end of next month'.format(days)
+		doc.payment_term_name = 'EO2M'
+
+	doc.save()
+	return doc