diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index 29739a4e01f6f..4c650ac05cfb8 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -394,4 +394,5 @@ erpnext.patches.v14_0.update_stock_uom_in_work_order_item
 erpnext.patches.v15_0.enable_allow_existing_serial_no
 erpnext.patches.v15_0.update_cc_in_process_statement_of_accounts
 erpnext.patches.v15_0.refactor_closing_stock_balance #5
-erpnext.patches.v15_0.update_asset_status_to_work_in_progress
\ No newline at end of file
+erpnext.patches.v15_0.update_asset_status_to_work_in_progress
+erpnext.patches.v15_0.migrate_checkbox_to_select_for_reconciliation_effect
diff --git a/erpnext/patches/v15_0/migrate_checkbox_to_select_for_reconciliation_effect.py b/erpnext/patches/v15_0/migrate_checkbox_to_select_for_reconciliation_effect.py
new file mode 100644
index 0000000000000..3b54b6696a730
--- /dev/null
+++ b/erpnext/patches/v15_0/migrate_checkbox_to_select_for_reconciliation_effect.py
@@ -0,0 +1,18 @@
+import frappe
+
+
+def execute():
+	"""
+	'reconcile_on_advance_payment_date' has been renamed to 'reconciliation_takes_effect_on' and converted to a Select fields
+	Checbox value of above fields are converted to select in both company master and Payment Entry
+	"""
+	companies = frappe.db.get_all("Company", fields=["name", "reconciliation_takes_effect_on"])
+	for x in companies:
+		new_value = (
+			"Advance Payment Date" if x.reconciliation_takes_effect_on else "Oldest Of Invoice Or Advance"
+		)
+		frappe.db.set_value("Company", x.name, "reconciliation_takes_effect_on", new_value)
+
+	frappe.db.sql(
+		"""update `tabPayment Entry` set advance_payment_reconciliation_takes_effect_on = if(advance_payment_reconciliation_takes_effect_on = 0, 'Oldest Of Invoice Or Advance', 'Advance Payment Date')"""
+	)