diff --git a/erpnext/selling/report/payment_terms_status_for_sales_order/test_payment_terms_status_for_sales_order.py b/erpnext/selling/report/payment_terms_status_for_sales_order/test_payment_terms_status_for_sales_order.py
index 0b46e949b4..9d542f5079 100644
--- a/erpnext/selling/report/payment_terms_status_for_sales_order/test_payment_terms_status_for_sales_order.py
+++ b/erpnext/selling/report/payment_terms_status_for_sales_order/test_payment_terms_status_for_sales_order.py
@@ -11,10 +11,13 @@ from erpnext.selling.report.payment_terms_status_for_sales_order.payment_terms_s
 )
 from erpnext.stock.doctype.item.test_item import create_item
 
-test_dependencies = ["Sales Order", "Item", "Sales Invoice", "Payment Terms Template"]
+test_dependencies = ["Sales Order", "Item", "Sales Invoice", "Payment Terms Template", "Customer"]
 
 
 class TestPaymentTermsStatusForSalesOrder(FrappeTestCase):
+	def tearDown(self):
+		frappe.db.rollback()
+
 	def create_payment_terms_template(self):
 		# create template for 50-50 payments
 		template = None
@@ -204,3 +207,134 @@ class TestPaymentTermsStatusForSalesOrder(FrappeTestCase):
 			},
 		]
 		self.assertEqual(data, expected_value)
+
+	def test_03_group_filters(self):
+		transaction_date = "2021-06-15"
+		self.create_payment_terms_template()
+		item1 = create_item(item_code="_Test Excavator 1", is_stock_item=0)
+		item1.item_group = "Products"
+		item1.save()
+
+		so1 = make_sales_order(
+			transaction_date=transaction_date,
+			delivery_date=add_days(transaction_date, -30),
+			item=item1.item_code,
+			qty=1,
+			rate=1000000,
+			do_not_save=True,
+		)
+		so1.po_no = ""
+		so1.taxes_and_charges = ""
+		so1.taxes = ""
+		so1.payment_terms_template = self.template.name
+		so1.save()
+		so1.submit()
+
+		item2 = create_item(item_code="_Test Steel", is_stock_item=0)
+		item2.item_group = "Raw Material"
+		item2.save()
+
+		so2 = make_sales_order(
+			customer="_Test Customer 1",
+			transaction_date=transaction_date,
+			delivery_date=add_days(transaction_date, -30),
+			item=item2.item_code,
+			qty=100,
+			rate=1000,
+			do_not_save=True,
+		)
+		so2.po_no = ""
+		so2.taxes_and_charges = ""
+		so2.taxes = ""
+		so2.payment_terms_template = self.template.name
+		so2.save()
+		so2.submit()
+
+		base_filters = {
+			"company": "_Test Company",
+			"period_start_date": "2021-06-01",
+			"period_end_date": "2021-06-30",
+		}
+
+		expected_value_so1 = [
+			{
+				"name": so1.name,
+				"customer": so1.customer,
+				"submitted": datetime.date(2021, 6, 15),
+				"status": "Overdue",
+				"payment_term": None,
+				"description": "_Test 50-50",
+				"due_date": datetime.date(2021, 6, 30),
+				"invoice_portion": 50.0,
+				"currency": "INR",
+				"base_payment_amount": 500000.0,
+				"paid_amount": 0.0,
+				"invoices": "",
+			},
+			{
+				"name": so1.name,
+				"customer": so1.customer,
+				"submitted": datetime.date(2021, 6, 15),
+				"status": "Overdue",
+				"payment_term": None,
+				"description": "_Test 50-50",
+				"due_date": datetime.date(2021, 7, 15),
+				"invoice_portion": 50.0,
+				"currency": "INR",
+				"base_payment_amount": 500000.0,
+				"paid_amount": 0.0,
+				"invoices": "",
+			},
+		]
+
+		expected_value_so2 = [
+			{
+				"name": so2.name,
+				"customer": so2.customer,
+				"submitted": datetime.date(2021, 6, 15),
+				"status": "Overdue",
+				"payment_term": None,
+				"description": "_Test 50-50",
+				"due_date": datetime.date(2021, 6, 30),
+				"invoice_portion": 50.0,
+				"currency": "INR",
+				"base_payment_amount": 50000.0,
+				"paid_amount": 0.0,
+				"invoices": "",
+			},
+			{
+				"name": so2.name,
+				"customer": so2.customer,
+				"submitted": datetime.date(2021, 6, 15),
+				"status": "Overdue",
+				"payment_term": None,
+				"description": "_Test 50-50",
+				"due_date": datetime.date(2021, 7, 15),
+				"invoice_portion": 50.0,
+				"currency": "INR",
+				"base_payment_amount": 50000.0,
+				"paid_amount": 0.0,
+				"invoices": "",
+			},
+		]
+
+		group_filters = [
+			{"customer_group": "All Customer Groups"},
+			{"item_group": "All Item Groups"},
+			{"item_group": "Products"},
+			{"item_group": "Raw Material"},
+		]
+
+		expected_values_for_group_filters = [
+			expected_value_so1 + expected_value_so2,
+			expected_value_so1 + expected_value_so2,
+			expected_value_so1,
+			expected_value_so2,
+		]
+
+		for idx, g in enumerate(group_filters, 0):
+			# build filter
+			filters = frappe._dict({}).update(base_filters).update(g)
+			with self.subTest(filters=filters):
+				columns, data, message, chart = execute(filters)
+				self.assertEqual(data, expected_values_for_group_filters[idx])