diff --git a/models/baseModels/tests/testLoyaltyProgram.spec.ts b/models/baseModels/tests/testLoyaltyProgram.spec.ts
new file mode 100644
index 00000000..c3076fd9
--- /dev/null
+++ b/models/baseModels/tests/testLoyaltyProgram.spec.ts
@@ -0,0 +1,260 @@
+import test from 'tape';
+import { closeTestFyo, getTestFyo, setupTestFyo } from 'tests/helpers';
+import { ModelNameEnum } from 'models/types';
+import { Party } from '../Party/Party';
+import { SalesInvoice } from '../SalesInvoice/SalesInvoice';
+import { getLoyaltyProgramTier } from 'models/helpers';
+import { CollectionRulesItems } from '../CollectionRulesItems/CollectionRulesItems';
+
+const fyo = getTestFyo();
+setupTestFyo(fyo, __filename);
+
+const accountData = {
+  name: 'Loyalty Point Redemption',
+  rootType: 'Liability',
+  parentAccount: 'Accounts Payable',
+  isGroup: false,
+};
+
+const itemData = {
+  name: 'Pen',
+  rate: 4000,
+  for: 'Both',
+};
+
+const partyData = {
+  name: 'John Whoe',
+  email: 'john@whoe.com',
+};
+
+const loyaltyProgramData = {
+  name: 'program',
+  fromDate: new Date(Date.now()),
+  toDate: new Date(Date.now()),
+  email: 'sample@gmail.com',
+  mobile: '1234567890',
+  expenseAccount: accountData.name,
+};
+
+const collectionRulesData = [
+  {
+    tierName: 'Silver',
+    collectionFactor: 0.5,
+    minimumTotalSpent: 2000,
+  },
+  { tierName: 'Gold', collectionFactor: 0.5, minimumTotalSpent: 3000 },
+];
+
+test('create test docs', async (t) => {
+  await fyo.doc.getNewDoc(ModelNameEnum.Item, itemData).sync();
+
+  t.ok(
+    fyo.db.exists(ModelNameEnum.Item, itemData.name),
+    `dummy item ${itemData.name}  exists`
+  );
+
+  await fyo.doc.getNewDoc(ModelNameEnum.Party, partyData).sync();
+
+  t.ok(
+    fyo.db.exists(ModelNameEnum.Party, partyData.name),
+    `dummy party ${partyData.name} exists`
+  );
+
+  await fyo.doc.getNewDoc(ModelNameEnum.Account, accountData).sync();
+
+  t.ok(
+    fyo.db.exists(ModelNameEnum.Account, accountData.name),
+    `dummy account ${accountData.name}  exists`
+  );
+});
+
+test('create a Loyalty Program document', async (t) => {
+  const loyaltyProgramDoc = fyo.doc.getNewDoc(
+    ModelNameEnum.LoyaltyProgram,
+    loyaltyProgramData
+  );
+
+  await loyaltyProgramDoc.append('collectionRules', collectionRulesData[0]);
+
+  await loyaltyProgramDoc.append('collectionRules', collectionRulesData[1]);
+
+  await loyaltyProgramDoc.sync();
+
+  t.ok(
+    fyo.db.exists(ModelNameEnum.LoyaltyProgram, loyaltyProgramData.name),
+    `Loyalty Program '${loyaltyProgramData.name}' exists `
+  );
+
+  const partyDoc = (await fyo.doc.getDoc(
+    ModelNameEnum.Party,
+    partyData.name
+  )) as Party;
+
+  await partyDoc.setAndSync('loyaltyProgram', loyaltyProgramData.name);
+
+  t.equals(
+    partyDoc.loyaltyProgram,
+    loyaltyProgramData.name,
+    `Loyalty Program '${loyaltyProgramData.name}' successfully added to Party '${partyData.name}'`
+  );
+});
+
+async function loyaltyPointEntryDoc(sinvName: string) {
+  const loyaltyPointEntryData = (await fyo.db.getAll(
+    ModelNameEnum.LoyaltyPointEntry,
+    {
+      fields: ['name', 'customer', 'loyaltyPoints', 'loyaltyProgramTier'],
+      filters: { invoice: sinvName! },
+    }
+  )) as {
+    name?: string;
+    customer?: string;
+    loyaltyPoints?: number;
+    loyaltyProgramTier?: string;
+  }[];
+
+  if (loyaltyPointEntryData) {
+    return loyaltyPointEntryData[0];
+  }
+}
+
+async function createSalesInvoice() {
+  const sinvDoc = fyo.doc.getNewDoc(ModelNameEnum.SalesInvoice, {
+    account: 'Debtors',
+    party: partyData.name,
+    items: [
+      {
+        item: itemData.name,
+        rate: itemData.rate,
+        quantity: 1,
+      },
+    ],
+  }) as SalesInvoice;
+
+  return sinvDoc;
+}
+
+test('create Sales Invoice and verify loyalty points are created correctly', async (t) => {
+  const sinvDoc = await createSalesInvoice();
+
+  await sinvDoc.sync();
+  await sinvDoc.submit();
+
+  t.ok(
+    fyo.db.exists(ModelNameEnum.SalesInvoice, sinvDoc.name),
+    `Sales Invoice '${sinvDoc.name}' exists`
+  );
+
+  t.ok(
+    fyo.db.exists(ModelNameEnum.SalesInvoice, sinvDoc.loyaltyProgram),
+    `Loyalty Program '${sinvDoc.loyaltyProgram}' should be linked to Sales Invoice '${sinvDoc.name}'`
+  );
+
+  t.equals(
+    sinvDoc.loyaltyProgram,
+    loyaltyProgramData.name,
+    `Loyalty Program '${sinvDoc.loyaltyProgram}' linked to Sales Invoice'`
+  );
+
+  const loyaltyPointEntryData = await loyaltyPointEntryDoc(
+    sinvDoc.name as string
+  );
+
+  const loyaltyProgramDoc = (await fyo.doc.getDoc(
+    ModelNameEnum.LoyaltyProgram,
+    sinvDoc.loyaltyProgram
+  )) as Party;
+
+  const selectedTier: CollectionRulesItems | undefined = getLoyaltyProgramTier(
+    loyaltyProgramDoc,
+    fyo.pesa(itemData.rate)
+  );
+
+  t.equals(
+    loyaltyPointEntryData?.loyaltyProgramTier,
+    selectedTier?.tierName,
+    `tier name ${loyaltyPointEntryData?.loyaltyProgramTier} matches.'`
+  );
+
+  const tierData = collectionRulesData.find((rule) => {
+    return rule.tierName === loyaltyPointEntryData?.loyaltyProgramTier;
+  });
+
+  t.equals(
+    loyaltyPointEntryData?.loyaltyPoints,
+    itemData.rate * (tierData?.collectionFactor as number),
+    `calculation of ${loyaltyPointEntryData?.loyaltyPoints} loyalty Point is correct'`
+  );
+});
+
+test('create SINV with future date and verify loyalty points are not created', async (t) => {
+  const futureDate = new Date(new Date().setDate(new Date().getDate() + 20));
+
+  const sinvDoc = await createSalesInvoice();
+  sinvDoc.date = futureDate;
+
+  await sinvDoc.sync();
+  await sinvDoc.submit();
+
+  t.ok(
+    fyo.db.exists(ModelNameEnum.SalesInvoice, sinvDoc.name),
+    `Sales Invoice '${sinvDoc.name}' exists`
+  );
+
+  const loyaltyPointEntryData = await loyaltyPointEntryDoc(
+    sinvDoc.name as string
+  );
+  t.equals(
+    loyaltyPointEntryData,
+    undefined,
+    'Loyalty points should not be created for a future-dated Sales Invoice'
+  );
+});
+
+test('redeem loyalty points and verify a new loyalty point entry doc is created', async (t) => {
+  const sinvDoc = await createSalesInvoice();
+
+  sinvDoc.redeemLoyaltyPoints = true;
+  sinvDoc.loyaltyPoints = 1000;
+
+  await sinvDoc.sync();
+  await sinvDoc.submit();
+
+  t.ok(
+    fyo.db.exists(ModelNameEnum.SalesInvoice, sinvDoc.name),
+    `Sales Invoice '${sinvDoc.name}' exists`
+  );
+
+  const loyaltyPointEntryData = await loyaltyPointEntryDoc(
+    sinvDoc.name as string
+  );
+
+  t.ok(
+    await fyo.db.exists(
+      ModelNameEnum.LoyaltyPointEntry,
+      loyaltyPointEntryData?.name
+    ),
+    `Negative Loyalty Point Entry '${loyaltyPointEntryData?.name}' should be created against Sales Invoice '${sinvDoc.name}'`
+  );
+
+  t.equals(
+    loyaltyPointEntryData?.loyaltyPoints,
+    -1000,
+    `redeemed loyalty point matches the loyalty points used`
+  );
+
+  const partyDoc = (await fyo.doc.getDoc(
+    ModelNameEnum.Party,
+    partyData.name
+  )) as Party;
+
+  const totalPoints = await partyDoc._getTotalLoyaltyPoints();
+
+  t.equals(
+    totalPoints,
+    itemData.rate * collectionRulesData[1].collectionFactor + -1000,
+    `Customer '${partyData.name}' should have a total of ${totalPoints} loyalty points after redemption`
+  );
+});
+
+closeTestFyo(fyo, __filename);