diff --git a/cookiecutter/target-template/{{cookiecutter.target_id}}/meltano.yml b/cookiecutter/target-template/{{cookiecutter.target_id}}/meltano.yml
index dab8bf213..dc1a71bc5 100644
--- a/cookiecutter/target-template/{{cookiecutter.target_id}}/meltano.yml
+++ b/cookiecutter/target-template/{{cookiecutter.target_id}}/meltano.yml
@@ -21,7 +21,7 @@ plugins:
     capabilities:
     - about
     - stream-maps
-    - record-flattening
+    - schema-flattening
 
     # TODO: Declare settings and their types here:
     settings:
diff --git a/docs/capabilities.rst b/docs/capabilities.rst
index de3565777..b71df4c67 100644
--- a/docs/capabilities.rst
+++ b/docs/capabilities.rst
@@ -14,6 +14,7 @@ The following capabilities are supported by default.
 .. autoattribute:: PluginCapabilities.ABOUT
 .. autoattribute:: PluginCapabilities.BATCH
 .. autoattribute:: PluginCapabilities.STREAM_MAPS
+.. autoattribute:: PluginCapabilities.FLATTENING
 
 ========================
 Custom base capabilities
@@ -60,5 +61,4 @@ The following capabilities have to be implemented in the target.
 .. autoattribute:: TargetCapabilities.SOFT_DELETE
 .. autoattribute:: TargetCapabilities.HARD_DELETE
 .. autoattribute:: TargetCapabilities.DATATYPE_FAILSAFE
-.. autoattribute:: TargetCapabilities.RECORD_FLATTENING
 .. autoattribute:: TargetCapabilities.TARGET_SCHEMA
diff --git a/singer_sdk/helpers/capabilities.py b/singer_sdk/helpers/capabilities.py
index 3445c5bc6..76d7fcffb 100644
--- a/singer_sdk/helpers/capabilities.py
+++ b/singer_sdk/helpers/capabilities.py
@@ -365,9 +365,6 @@ class TargetCapabilities(CapabilitiesEnum):
     #: Fail safe for unknown JSON Schema types.
     DATATYPE_FAILSAFE = "datatype-failsafe"
 
-    #: Allow denesting complex properties.
-    RECORD_FLATTENING = "record-flattening"
-
     #: Allow setting the target schema.
     TARGET_SCHEMA = "target-schema"