diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index 81d2786c107..8de1a1219c8 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -666,7 +666,7 @@ class AccountsController(TransactionBase):
 			self.remove(item)
 
 	def set_payment_schedule(self):
-		posting_date = self.get("posting_date") or self.get("transaction_date")
+		posting_date = self.get("bill_date") or self.get("posting_date") or self.get("transaction_date")
 		date = self.get("due_date")
 		due_date = date or posting_date
 		grand_total = self.get("rounded_total") or self.grand_total
diff --git a/erpnext/public/js/controllers/transaction.js b/erpnext/public/js/controllers/transaction.js
index c37a61739e9..9ee82d21189 100644
--- a/erpnext/public/js/controllers/transaction.js
+++ b/erpnext/public/js/controllers/transaction.js
@@ -1261,11 +1261,14 @@ erpnext.TransactionController = erpnext.taxes_and_totals.extend({
 	payment_terms_template: function() {
 		var me = this;
 		if(this.frm.doc.payment_terms_template) {
+			var posting_date = this.frm.doc.bill_date ||
+				this.frm.doc.posting_date || this.frm.doc.transaction_date;
+
 			frappe.call({
 				method: "erpnext.controllers.accounts_controller.get_payment_terms",
 				args: {
 					terms_template: this.frm.doc.payment_terms_template,
-					posting_date: this.frm.doc.posting_date || this.frm.doc.transaction_date,
+					posting_date: posting_date,
 					grand_total: this.frm.doc.rounded_total || this.frm.doc.grand_total
 				},
 				callback: function(r) {