diff --git a/app/helpers/contracts_helper.rb b/app/helpers/contracts_helper.rb
index 588a1e9..2bc20f5 100644
--- a/app/helpers/contracts_helper.rb
+++ b/app/helpers/contracts_helper.rb
@@ -75,6 +75,6 @@ module ContractsHelper
 
   def format_payment_terms(value)
     return '' if value.blank?
-    return l(Contract::PaymentTerms[value.to_sym])
+    return h(value.name)
   end
 end
diff --git a/app/models/contract.rb b/app/models/contract.rb
index ba23fdf..2ca4c13 100644
--- a/app/models/contract.rb
+++ b/app/models/contract.rb
@@ -4,6 +4,7 @@ class Contract < ActiveRecord::Base
   # Associations
   belongs_to :project
   belongs_to :account_executive, :class_name => 'User', :foreign_key => 'account_executive_id'
+  belongs_to :payment_term, :class_name => "PaymentTerm", :foreign_key => "payment_term_id"
   has_many :deliverables, :dependent => :destroy
 
   # Validations
@@ -24,7 +25,7 @@ class Contract < ActiveRecord::Base
   attr_accessible :billable_rate
   attr_accessible :discount
   attr_accessible :discount_note
-  attr_accessible :payment_terms
+  attr_accessible :payment_term_id
   attr_accessible :client_ap_contact_information
   attr_accessible :po_number
   attr_accessible :client_point_of_contact
@@ -91,19 +92,6 @@ class Contract < ActiveRecord::Base
   end
   alias_method :profit_spent, :profit_left
 
-  PaymentTerms = {
-    :net_0 => :text_payment_terms_net_0,
-    :net_15 => :text_payment_terms_net_15,
-    :net_30 => :text_payment_terms_net_30,
-    :net_45 => :text_payment_terms_net_45
-  }
-
-  def payment_terms_for_select
-    PaymentTerms.collect {|value, label|
-      [l(label), value.to_s]
-    }
-  end
-  
   def after_initialize
     self.executed = false unless self.executed.present?
   end
diff --git a/app/models/payment_term.rb b/app/models/payment_term.rb
new file mode 100644
index 0000000..4c76f64
--- /dev/null
+++ b/app/models/payment_term.rb
@@ -0,0 +1,19 @@
+class PaymentTerm < Enumeration
+  unloadable
+
+  has_many :contracts, :foreign_key => 'payment_term_id'
+
+  OptionName = :enumeration_payment_term
+  
+  def option_name
+    OptionName
+  end
+
+  def objects_count
+    contracts.count
+  end
+
+  def transfer_relations(to)
+    contracts.update_all("payment_term_id = #{to.id}")
+  end
+end
diff --git a/app/views/contracts/_form.html.erb b/app/views/contracts/_form.html.erb
index 224b40c..0a8c204 100644
--- a/app/views/contracts/_form.html.erb
+++ b/app/views/contracts/_form.html.erb
@@ -18,7 +18,7 @@
 <% end %>
 
 <% form.inputs :name => l(:text_account_legend) do %>
-  <%= form.input :payment_terms, :as => :select, :collection => resource.payment_terms_for_select %>
+  <%= form.input :payment_term %>
   <%= form.input :po_number %>
   <%= form.input :client_ap_contact_information, :input_html => {:class => 'wiki-edit', :rows => '5'} %>
   <%= form.input :client_point_of_contact, :input_html => {:class => 'wiki-edit', :rows => '5'} %>
diff --git a/app/views/contracts/show.html.erb b/app/views/contracts/show.html.erb
index d191b21..0267b65 100644
--- a/app/views/contracts/show.html.erb
+++ b/app/views/contracts/show.html.erb
@@ -33,7 +33,7 @@
           <%= show_field(resource, :client_point_of_contact, :format => :textilizable, :raw => true, :html_options => {:class => 'contract-client-point-of-contact padd'}, :label_html_options => {:width => '25%'}) %>
           <%= show_field(resource, :executed, :html_options => {:class => 'contract-executed'}) %>
           <%= show_field(resource, :discount_note, :format => :textilizable, :raw => true, :html_options => {:class => 'contract-discount-note'}) %>
-          <%= show_field(resource, :payment_terms, :format => :format_payment_terms, :html_options => {:class => 'contract-payment-terms'}) %>
+          <%= show_field(resource, :payment_term, :format => :format_payment_terms, :html_options => {:class => 'contract-payment-terms'}) %>
           <%= show_field(resource, :client_ap_contact_information, :format => :textilizable, :raw => true, :html_options => {:class => 'contract-client-ap-contact-information'}) %>
           <%= show_field(resource, :po_number, :html_options => {:class => 'contract-po-number'}) %>
           <%= show_field(resource, :details, :format => :textilizable, :raw => true, :html_options => {:class => 'contract-details'}) %>
diff --git a/config/locales/en.yml b/config/locales/en.yml
index ccd70b2..85cdfd1 100644
--- a/config/locales/en.yml
+++ b/config/locales/en.yml
@@ -13,14 +13,10 @@ en:
   field_discount: "Discount"
   field_discount_hint: "$, %"
   field_discount_note: "Discounts Notes"
-  field_payment_terms: "Payment Terms"
+  field_payment_term: "Payment Terms"
   field_client_ap_contact_information: "AP Contact Info"
   field_po_number: "PO Number"
   field_details: "Details"
-  text_payment_terms_net_0: "Net 0"
-  text_payment_terms_net_15: "Net 15"
-  text_payment_terms_net_30: "Net 30"
-  text_payment_terms_net_45: "Net 45"
   button_add_new: Add New
   text_new_deliverable: New Deliverable
   text_edit_deliverable_title: "Edit {{title}}"
@@ -60,4 +56,5 @@ en:
   text_account_legend: "Account Management"
   text_deliverable_details_legend: "Deliverable Details"
   text_save_contract: "Save Contract"
+  enumeration_payment_term: "Payment Terms"
 
diff --git a/db/migrate/008_add_payment_term_id_to_contracts.rb b/db/migrate/008_add_payment_term_id_to_contracts.rb
new file mode 100644
index 0000000..99ec0a5
--- /dev/null
+++ b/db/migrate/008_add_payment_term_id_to_contracts.rb
@@ -0,0 +1,9 @@
+class AddPaymentTermIdToContracts < ActiveRecord::Migration
+  def self.up
+    add_column :contracts, :payment_term_id, :integer
+  end
+
+  def self.down
+    remove_column :contracts, :payment_term_id
+  end
+end
diff --git a/db/migrate/009_remove_payment_terms_from_contracts.rb b/db/migrate/009_remove_payment_terms_from_contracts.rb
new file mode 100644
index 0000000..4760555
--- /dev/null
+++ b/db/migrate/009_remove_payment_terms_from_contracts.rb
@@ -0,0 +1,9 @@
+class RemovePaymentTermsFromContracts < ActiveRecord::Migration
+  def self.up
+    remove_column :contracts, :payment_terms
+  end
+
+  def self.down
+    add_column :contracts, :payment_terms, :string
+  end
+end
diff --git a/db/migrate/010_populate_payment_terms.rb b/db/migrate/010_populate_payment_terms.rb
new file mode 100644
index 0000000..84b91e3
--- /dev/null
+++ b/db/migrate/010_populate_payment_terms.rb
@@ -0,0 +1,14 @@
+class PopulatePaymentTerms < ActiveRecord::Migration
+  def self.up
+    [0, 15, 30, 45, 60, 75, 90].each_with_index do |days, index|
+      name = "Net #{days}"
+      unless PaymentTerm.find_by_name(name)
+        PaymentTerm.create!(:name => name, :position => index + 1)
+      end
+    end
+  end
+
+  def self.down
+    # No-op
+  end
+end
diff --git a/init.rb b/init.rb
index 9c0e75d..b7a590a 100644
--- a/init.rb
+++ b/init.rb
@@ -58,6 +58,8 @@ Dispatcher.to_prepare :redmine_contracts do
 
   Formtastic::SemanticFormBuilder.all_fields_required_by_default = false
   Formtastic::SemanticFormBuilder.required_string = "<span class='required'> *</span>"
+
+  require_dependency 'payment_term' # Load so Enumeration will pick up the subclass in dev
   
   require_dependency 'project'
   Project.send(:include, RedmineContracts::Patches::ProjectPatch)
diff --git a/test/integration/contracts_delete_test.rb b/test/integration/contracts_delete_test.rb
index f46c2f2..f40d1a2 100644
--- a/test/integration/contracts_delete_test.rb
+++ b/test/integration/contracts_delete_test.rb
@@ -5,7 +5,7 @@ class ContractsDeleteTest < ActionController::IntegrationTest
   
   def setup
     @project = Project.generate!(:identifier => 'main')
-    @contract = Contract.generate!(:project => @project, :name => 'A Contract', :payment_terms => 'net_15')
+    @contract = Contract.generate!(:project => @project, :name => 'A Contract')
   end
 
   should "allow admins to delete the contract" do
diff --git a/test/integration/contracts_edit_test.rb b/test/integration/contracts_edit_test.rb
index 38c5ecf..8931b56 100644
--- a/test/integration/contracts_edit_test.rb
+++ b/test/integration/contracts_edit_test.rb
@@ -8,7 +8,7 @@ class ContractsEditTest < ActionController::IntegrationTest
     @account_executive = User.generate!
     @role = Role.generate!
     User.add_to_project(@account_executive, @project, @role)
-    @contract = Contract.generate!(:project => @project, :name => 'A Contract', :payment_terms => 'net_15', :account_executive => @account_executive)
+    @contract = Contract.generate!(:project => @project, :name => 'A Contract', :account_executive => @account_executive)
   end
 
   should "allow any user to edit the contract" do
@@ -23,9 +23,7 @@ class ContractsEditTest < ActionController::IntegrationTest
     assert_select "h2", :text => /#{@contract.name}/
     assert_select "form#edit_contract_#{@contract.id}.contract" do
       assert_select "input[value=?]", /#{@contract.name}/
-      assert_select "select#contract_payment_terms" do
-        assert_select "option[selected=selected][value=net_15]"
-      end
+      assert_select "select#contract_payment_term_id"
     end
 
     fill_in "Name", :with => 'An updated name'
diff --git a/test/integration/contracts_new_test.rb b/test/integration/contracts_new_test.rb
index 872da4e..d84ecaf 100644
--- a/test/integration/contracts_new_test.rb
+++ b/test/integration/contracts_new_test.rb
@@ -5,6 +5,8 @@ class ContractsNewTest < ActionController::IntegrationTest
   
   def setup
     @project = Project.generate!(:identifier => 'main')
+    PaymentTerm.generate!(:type => 'PaymentTerm', :name => 'Net 15')
+    PaymentTerm.generate!(:type => 'PaymentTerm', :name => 'Net 30')
   end
 
   should "allow any user to open the new contracts form" do
@@ -40,7 +42,7 @@ class ContractsNewTest < ActionController::IntegrationTest
     assert_equal @account_executive, @contract.account_executive
     assert_equal '2010-01-01', @contract.start_date.to_s
     assert_equal '2010-12-31', @contract.end_date.to_s
-    assert_equal 'net_30', @contract.payment_terms
+    assert_equal 'Net 30', @contract.payment_term.name
     
   end
 end
diff --git a/test/integration/deliverables_delete_test.rb b/test/integration/deliverables_delete_test.rb
index 795e2c4..bc377ad 100644
--- a/test/integration/deliverables_delete_test.rb
+++ b/test/integration/deliverables_delete_test.rb
@@ -5,7 +5,7 @@ class DeliverablesDeleteTest < ActionController::IntegrationTest
   
   def setup
     @project = Project.generate!(:identifier => 'main')
-    @contract = Contract.generate!(:project => @project, :name => 'A Contract', :payment_terms => 'net_15')
+    @contract = Contract.generate!(:project => @project, :name => 'A Contract')
     @manager = User.generate!
     @deliverable = FixedDeliverable.generate!(:contract => @contract, :manager => @manager)
   end
diff --git a/test/integration/deliverables_edit_test.rb b/test/integration/deliverables_edit_test.rb
index 5ac2173..c00dfc3 100644
--- a/test/integration/deliverables_edit_test.rb
+++ b/test/integration/deliverables_edit_test.rb
@@ -5,7 +5,7 @@ class DeliverablesEditTest < ActionController::IntegrationTest
   
   def setup
     @project = Project.generate!(:identifier => 'main')
-    @contract = Contract.generate!(:project => @project, :name => 'A Contract', :payment_terms => 'net_15')
+    @contract = Contract.generate!(:project => @project, :name => 'A Contract')
     @manager = User.generate!
     @role = Role.generate!
     User.add_to_project(@manager, @project, @role)
diff --git a/test/integration/overhead_plugin_integration_test.rb b/test/integration/overhead_plugin_integration_test.rb
index 4e39211..d6401cc 100644
--- a/test/integration/overhead_plugin_integration_test.rb
+++ b/test/integration/overhead_plugin_integration_test.rb
@@ -3,7 +3,7 @@ require 'test_helper'
 class OverheadPluginIntegrationTest < ActionController::IntegrationTest
   def setup
     @project = Project.generate!(:identifier => 'main')
-    @contract = Contract.generate!(:project => @project, :name => 'A Contract', :payment_terms => 'net_15')
+    @contract = Contract.generate!(:project => @project, :name => 'A Contract')
     @manager = User.generate!
     @role = Role.generate!
     User.add_to_project(@manager, @project, @role)
diff --git a/test/unit/contract_test.rb b/test/unit/contract_test.rb
index bb02ef0..50e950b 100644
--- a/test/unit/contract_test.rb
+++ b/test/unit/contract_test.rb
@@ -3,6 +3,7 @@ require File.dirname(__FILE__) + '/../test_helper'
 class ContractTest < ActiveSupport::TestCase
   should_belong_to :account_executive
   should_belong_to :project
+  should_belong_to :payment_term
   should_have_many :deliverables
 
   should_validate_presence_of :name
diff --git a/test/unit/payment_term_test.rb b/test/unit/payment_term_test.rb
new file mode 100644
index 0000000..6f10325
--- /dev/null
+++ b/test/unit/payment_term_test.rb
@@ -0,0 +1,40 @@
+require File.dirname(__FILE__) + '/../test_helper'
+
+class PaymentTermTest < ActiveSupport::TestCase
+  include Redmine::I18n
+
+  should_have_many(:contracts)
+  
+  should "be a subclass of Enumeration" do
+    assert_equal Enumeration, PaymentTerm.superclass
+  end
+
+  context "#option_name" do
+    should "be Payment Terms" do
+      assert_equal "Payment Terms", l(PaymentTerm.new.option_name)
+    end
+  end
+
+  context "#objects_count" do
+    should "count the number of contracts with this payment term" do
+      @payment_term = PaymentTerm.generate!(:type => 'PaymentTerm')
+      Contract.generate!(:payment_term => @payment_term)
+      Contract.generate!(:payment_term => @payment_term)
+
+      assert_equal 2, @payment_term.objects_count
+    end
+  end
+
+  context "#transfer_relations" do
+    should "update all contracts to use a new PaymentTerm" do
+      @old_payment_term = PaymentTerm.generate!(:type => 'PaymentTerm')
+      @new_payment_term = PaymentTerm.generate!(:type => 'PaymentTerm')
+      @contract1 = Contract.generate!(:payment_term => @old_payment_term)
+      @contract2 = Contract.generate!(:payment_term => @old_payment_term)
+
+      @old_payment_term.transfer_relations(@new_payment_term)
+      assert_equal @new_payment_term, @contract1.reload.payment_term
+      assert_equal @new_payment_term, @contract2.reload.payment_term
+    end
+  end
+end