diff --git a/app/Filters/QueryFilters.php b/app/Filters/QueryFilters.php
index fc33f283a554..036b7a892ed0 100644
--- a/app/Filters/QueryFilters.php
+++ b/app/Filters/QueryFilters.php
@@ -288,6 +288,33 @@ abstract class QueryFilters
         return $this->builder;
     }
 
+    /**
+     * @return Builder
+     * @throws RuntimeException
+     */
+    public function without_deleted_clients(): Builder
+    {
+        return $this->builder->where(function ($query) {
+            $query->whereHas('client', function ($sub_query) {
+                $sub_query->where('is_deleted', 0);
+            })->orWhere('client_id', null);
+        });
+    }
+
+    /**
+     * @return Builder
+     * @throws RuntimeException
+     */
+    public function without_deleted_vendors(): Builder
+    {
+        return $this->builder->where(function ($query) {
+            $query->whereHas('vendor', function ($sub_query) {
+                $sub_query->where('is_deleted', 0);
+            })->orWhere('vendor_id', null);
+        });
+    }
+
+
     public function with(string $value = ''): Builder
     {
         if (strlen($value) == 0) {
diff --git a/app/Http/ValidationRules/Credit/ValidCreditsRules.php b/app/Http/ValidationRules/Credit/ValidCreditsRules.php
index 7b6fc32aed88..b0892da7330e 100644
--- a/app/Http/ValidationRules/Credit/ValidCreditsRules.php
+++ b/app/Http/ValidationRules/Credit/ValidCreditsRules.php
@@ -69,13 +69,16 @@ class ValidCreditsRules implements Rule
 
             if (! $cred) {
                 $this->error_msg = ctrans('texts.credit_not_found');
-
                 return false;
             }
 
             if ($cred->client_id != $this->input['client_id']) {
                 $this->error_msg = ctrans('texts.invoices_dont_match_client');
+                return false;
+            }
 
+            if($cred->balance < $credit['amount']) {
+                $this->error_msg = ctrans('texts.insufficient_credit_balance');
                 return false;
             }
         }
diff --git a/app/Services/Invoice/HandleRestore.php b/app/Services/Invoice/HandleRestore.php
index 4dc9621f4acf..c3e2947e8732 100644
--- a/app/Services/Invoice/HandleRestore.php
+++ b/app/Services/Invoice/HandleRestore.php
@@ -44,7 +44,6 @@ class HandleRestore extends AbstractService
         //cannot restore an invoice with a deleted payment
         foreach ($this->invoice->payments as $payment) {
             if (($this->invoice->paid_to_date == 0) && $payment->is_deleted) {
-                $this->invoice->delete(); //set it back to deleted so that it can be restored from repository
                 return $this->invoice;
             }
         }
@@ -81,8 +80,8 @@ class HandleRestore extends AbstractService
             Paymentable::query()
             ->withTrashed()
             ->where('payment_id', $payment->id)
-            ->where('paymentable_type', '=', 'invoices')
-            ->where('paymentable_id', $this->invoice->id)
+            // ->where('paymentable_type', '=', 'invoices')
+            // ->where('paymentable_id', $this->invoice->id)
             ->update(['deleted_at' => null]);
         });
 
@@ -102,6 +101,12 @@ class HandleRestore extends AbstractService
                                                 ->where('paymentable_type', '=', 'invoices')
                                                 ->where('paymentable_id', $this->invoice->id)
                                                 ->sum(DB::raw('refunded'));
+
+            //14/07/2023 - do not include credits in the payment amount
+            $this->adjustment_amount -= $payment->paymentables
+                                            ->where('paymentable_type', '=', 'App\Models\Credit')
+                                            ->sum(DB::raw('amount'));
+
         }
 
         $this->total_payments = $this->invoice->payments->sum('amount') - $this->invoice->payments->sum('refunded');
@@ -130,11 +135,16 @@ class HandleRestore extends AbstractService
                                             ->where('paymentable_id', $this->invoice->id)
                                             ->sum(DB::raw('refunded'));
 
+            $payment_adjustment -= $payment->paymentables
+                        ->where('paymentable_type', '=', 'App\Models\Credit')
+                        ->sum(DB::raw('amount'));
+ 
             $payment->amount += $payment_adjustment;
             $payment->applied += $payment_adjustment;
             $payment->is_deleted = false;
             $payment->restore();
             $payment->saveQuietly();
+
         });
         
         return $this;
diff --git a/app/Services/Invoice/MarkInvoiceDeleted.php b/app/Services/Invoice/MarkInvoiceDeleted.php
index 27291123d56e..72cfe0136de3 100644
--- a/app/Services/Invoice/MarkInvoiceDeleted.php
+++ b/app/Services/Invoice/MarkInvoiceDeleted.php
@@ -11,11 +11,12 @@
 
 namespace App\Services\Invoice;
 
-use App\Jobs\Inventory\AdjustProductInventory;
+use App\Models\Credit;
 use App\Models\Invoice;
 use App\Services\AbstractService;
-use App\Utils\Traits\GeneratesCounter;
 use Illuminate\Support\Facades\DB;
+use App\Utils\Traits\GeneratesCounter;
+use App\Jobs\Inventory\AdjustProductInventory;
 
 class MarkInvoiceDeleted extends AbstractService
 {
@@ -94,6 +95,11 @@ class MarkInvoiceDeleted extends AbstractService
                                             ->where('paymentable_id', $this->invoice->id)
                                             ->sum(DB::raw('refunded'));
 
+            //14-07-2023 - Do not include credits in the payment adjustment.
+            $payment_adjustment -= $payment->paymentables
+                                            ->where('paymentable_type', '=', 'App\Models\Credit')
+                                            ->sum(DB::raw('amount'));
+
             $payment->amount -= $payment_adjustment;
             $payment->applied -= $payment_adjustment;
             $payment->save();
diff --git a/app/Services/Payment/DeletePayment.php b/app/Services/Payment/DeletePayment.php
index f5c02d1e86e5..fb50797b64f5 100644
--- a/app/Services/Payment/DeletePayment.php
+++ b/app/Services/Payment/DeletePayment.php
@@ -109,6 +109,8 @@ class DeletePayment
                     $paymentable_invoice->service()
                                         ->updatePaidToDate($net_deletable * -1)
                                         ->save();
+                    $paymentable_invoice->delete();
+
                 }
             });
         }
diff --git a/tests/Feature/Export/ExportCompanyTest.php b/tests/Feature/Export/ExportCompanyTest.php
index 88696330ff63..c96c7fb347fc 100644
--- a/tests/Feature/Export/ExportCompanyTest.php
+++ b/tests/Feature/Export/ExportCompanyTest.php
@@ -46,7 +46,7 @@ class ExportCompanyTest extends TestCase
 
     public function testCompanyExport()
     {
-        $res = (new CompanyExport($this->company, $this->company->users->first()))->handle();
+        $res = (new CompanyExport($this->company, $this->company->users->first(), '123'))->handle();
 
         $this->assertTrue($res);
     }
diff --git a/tests/Feature/PaymentV2Test.php b/tests/Feature/PaymentV2Test.php
new file mode 100644
index 000000000000..761c00b03361
--- /dev/null
+++ b/tests/Feature/PaymentV2Test.php
@@ -0,0 +1,192 @@
+<?php
+/**
+ * Invoice Ninja (https://invoiceninja.com).
+ *
+ * @link https://github.com/invoiceninja/invoiceninja source repository
+ *
+ * @copyright Copyright (c) 2021. Invoice Ninja LLC (https://invoiceninja.com)
+ *
+ * @license https://www.elastic.co/licensing/elastic-license
+ */
+
+namespace Tests\Feature;
+
+use App\Models\Client;
+use App\Models\ClientContact;
+use App\Models\Credit;
+use App\Models\Invoice;
+use App\Models\Payment;
+use App\Utils\Traits\MakesHash;
+use Illuminate\Database\Eloquent\Model;
+use Illuminate\Foundation\Testing\DatabaseTransactions;
+use Illuminate\Foundation\Testing\WithoutEvents;
+use Illuminate\Routing\Middleware\ThrottleRequests;
+use Illuminate\Support\Facades\Session;
+use Illuminate\Validation\ValidationException;
+use Tests\MockAccountData;
+use Tests\TestCase;
+
+/**
+ * @test
+ * @covers App\Http\Controllers\PaymentController
+ */
+class PaymentV2Test extends TestCase
+{
+    use MakesHash;
+    use DatabaseTransactions;
+    use MockAccountData;
+    use WithoutEvents;
+
+    public $faker;
+    
+    protected function setUp() :void
+    {
+        parent::setUp();
+
+        Session::start();
+
+        $this->faker = \Faker\Factory::create();
+
+        Model::reguard();
+
+        $this->makeTestData();
+        $this->withoutExceptionHandling();
+
+        $this->withoutMiddleware(
+            ThrottleRequests::class
+        );
+    }
+
+    public function testStorePaymentWithCreditsThenDeletingInvoices()
+    {
+        $client = Client::factory()->create(['company_id' =>$this->company->id, 'user_id' => $this->user->id, 'balance' => 20, 'paid_to_date' => 0]);
+        ClientContact::factory()->create([
+            'user_id' => $this->user->id,
+            'client_id' => $client->id,
+            'company_id' => $this->company->id,
+            'is_primary' => 1,
+        ]);
+
+        $invoice = Invoice::factory()->create([
+            'company_id' => $this->company->id,
+            'user_id' => $this->user->id,
+            'client_id' => $client->id,
+            'status_id' => Invoice::STATUS_SENT,
+            'uses_inclusive_taxes' => false,
+            'amount' => 20,
+            'balance' => 20,
+            'discount' => 0,
+            'number' => uniqid("st", true),
+            'line_items' => []
+        ]);
+
+        $this->assertEquals(20, $client->balance);
+        $this->assertEquals(0, $client->paid_to_date);
+        $this->assertEquals(20, $invoice->amount);
+        $this->assertEquals(20, $invoice->balance);
+
+        $credit = Credit::factory()->create([
+            'company_id' => $this->company->id,
+            'user_id' => $this->user->id,
+            'client_id' => $client->id,
+            'status_id' => Invoice::STATUS_SENT,
+            'uses_inclusive_taxes' => false,
+            'amount' => 20,
+            'balance' => 20,
+            'discount' => 0,
+            'number' => uniqid("st", true),
+            'line_items' => []
+        ]);
+
+        $this->assertEquals(20, $credit->amount);
+        $this->assertEquals(20, $credit->balance);
+
+        $data = [
+            'client_id' => $client->hashed_id,
+            'invoices' => [
+                [
+                    'invoice_id' => $invoice->hashed_id,
+                    'amount' => 20,
+                ],
+            ],
+            'credits' => [
+                [
+                    'credit_id' => $credit->hashed_id,
+                    'amount' => 20,
+                ],
+            ],
+            'date' => '2020/12/12',
+
+        ];
+
+        $response = null;
+
+        try {
+            $response = $this->withHeaders([
+                'X-API-SECRET' => config('ninja.api_secret'),
+                'X-API-TOKEN' => $this->token,
+            ])->post('/api/v1/payments?include=invoices', $data);
+        } catch (ValidationException $e) {
+            $message = json_decode($e->validator->getMessageBag(), 1);
+            nlog($message);
+            $this->assertNotNull($message);
+        }
+
+        $arr = $response->json();
+        $response->assertStatus(200);
+
+        $payment_id = $arr['data']['id'];
+
+        $payment = Payment::find($this->decodePrimaryKey($payment_id));
+
+        $this->assertNotNull($payment);
+        $this->assertNotNull($payment->invoices());
+        $this->assertEquals(1, $payment->invoices()->count());
+        $this->assertEquals(0, $payment->amount);
+        $this->assertEquals(0, $client->fresh()->balance);
+        $this->assertEquals(20, $client->fresh()->paid_to_date);
+
+        $data = [
+            'action' => 'delete',
+            'ids' => [
+                $invoice->hashed_id,
+            ],
+        ];
+
+        $response = $this->withHeaders([
+            'X-API-SECRET' => config('ninja.api_secret'),
+            'X-API-TOKEN' => $this->token,
+        ])->post('/api/v1/invoices/bulk', $data);
+
+        $response->assertStatus(200);
+
+        $invoice = $invoice->fresh();
+        $payment = $payment->fresh();
+
+        $this->assertEquals(true, $invoice->is_deleted);
+        $this->assertEquals(0, $payment->amount);
+        $this->assertEquals(0, $client->fresh()->balance);
+        $this->assertEquals(0, $client->fresh()->paid_to_date);
+
+        $data = [
+            'action' => 'restore',
+            'ids' => [
+                $invoice->hashed_id,
+            ],
+        ];
+
+        $response = $this->withHeaders([
+            'X-API-SECRET' => config('ninja.api_secret'),
+            'X-API-TOKEN' => $this->token,
+        ])->post('/api/v1/invoices/bulk', $data);
+
+        $invoice = $invoice->fresh();
+        $this->assertEquals(false, $invoice->is_deleted);
+
+        $payment = $payment->fresh();
+
+        $this->assertEquals(0, $payment->amount);
+        $this->assertEquals(20, $client->fresh()->paid_to_date);
+
+    }
+}
\ No newline at end of file
diff --git a/tests/Unit/PaymentTypeTest.php b/tests/Unit/PaymentTypeTest.php
index 92440ad31efd..326e972627ad 100644
--- a/tests/Unit/PaymentTypeTest.php
+++ b/tests/Unit/PaymentTypeTest.php
@@ -33,7 +33,7 @@ class PaymentTypeTest extends TestCase
         $payment_type_class = new PaymentType;
 
         foreach($payment_type_class->type_names as $type)
-        {nlog($type);
+        {
             $this->assertTrue(Lang::has("texts.{$type}"));
         }
     }