diff --git a/app/Http/Controllers/OpenAPI/ClientSchema.php b/app/Http/Controllers/OpenAPI/ClientSchema.php
index b343e62b26b7..86049e5d2e1d 100644
--- a/app/Http/Controllers/OpenAPI/ClientSchema.php
+++ b/app/Http/Controllers/OpenAPI/ClientSchema.php
@@ -43,6 +43,7 @@
  *       @OA\Property(property="is_deleted", type="boolean", example=true, description="________"),
  *       @OA\Property(property="balance", type="number", format="float", example="10.00", description="________"),
  *       @OA\Property(property="paid_to_date", type="number", format="float", example="10.00", description="________"),
+ *       @OA\Property(property="credit_balance", type="number", format="float", example="10.00", description="An amount which is available to the client for future use."),
  *       @OA\Property(property="last_login", type="number", format="integer", example="134341234234", description="Timestamp"),
  *       @OA\Property(property="created_at", type="number", format="integer", example="134341234234", description="Timestamp"),
  *       @OA\Property(property="updated_at", type="number", format="integer", example="134341234234", description="Timestamp"),
diff --git a/app/Http/Requests/Payment/StorePaymentRequest.php b/app/Http/Requests/Payment/StorePaymentRequest.php
index 10987a8bd671..88bab4fb868e 100644
--- a/app/Http/Requests/Payment/StorePaymentRequest.php
+++ b/app/Http/Requests/Payment/StorePaymentRequest.php
@@ -33,15 +33,38 @@ class StorePaymentRequest extends Request
 
     }
 
+    protected function prepareForValidation()
+    {
+
+        $input = $this->all();
+
+        if(isset($input['client_id']))
+            $input['client_id'] = $this->decodePrimaryKey($input['client_id']);
+
+        if(isset($input['invoices'])){
+
+            foreach($input['invoices'] as $key => $value)
+            {
+              $input['invoices'][$key]['id'] = $this->decodePrimaryKey($value['id']);
+            }
+
+        }
+
+
+        if(is_array($input['invoices']) === false)
+            $input['invoices'] = null;
+
+        $this->replace($input);
+
+    }
+
     public function rules()
     {
-        $this->sanitize();
-
+        
         $rules = [
             'amount' => 'numeric|required',
             'payment_date' => 'required',
             'client_id' => 'required',
-            'invoices' => 'required',
             'invoices' => new ValidPayableInvoicesRule(),
         ];
 
@@ -50,25 +73,4 @@ class StorePaymentRequest extends Request
     }
 
 
-    public function sanitize()
-    {
-        $input = $this->all();
-
-        if(isset($input['client_id']))
-            $input['client_id'] = $this->decodePrimaryKey($input['client_id']);
-
-        if(isset($input['invoices']))
-            $input['invoices'] = $this->transformKeys(explode(",", $input['invoices']));
-
-        if(is_array($input['invoices']) === false)
-            $input['invoices'] = null;
-
-
-        $this->replace($input);   
-
-        return $this->all();
-
-    }
-
-
 }
\ No newline at end of file
diff --git a/app/Http/ValidationRules/ValidPayableInvoicesRule.php b/app/Http/ValidationRules/ValidPayableInvoicesRule.php
index 8c8550d5e9ca..c6964b2f75cd 100644
--- a/app/Http/ValidationRules/ValidPayableInvoicesRule.php
+++ b/app/Http/ValidationRules/ValidPayableInvoicesRule.php
@@ -28,18 +28,23 @@ class ValidPayableInvoicesRule implements Rule
      * @param mixed $value
      * @return bool
      */
+    
+    private $error_msg;
+
     public function passes($attribute, $value)
     {
+        /*If no invoices has been sent, then we apply the payment to the client account*/
+        $invoices = [];
 
-        $invoices = Invoice::whereIn('id', $this->transformKeys(explode(",",$value)))->get();
-
-        if(!$invoices || $invoices->count() == 0)
-            return false;
+        if(is_array($value))
+            $invoices = Invoice::whereIn('id', array_column($value,'id'))->company()->get();
 
         foreach ($invoices as $invoice) {
 
-        if(! $invoice->isPayable())
-            return false;
+            if(! $invoice->isPayable()) {
+                $this->error_msg = "One or more of these invoices have been paid";
+                return false;
+            }
         }
 
         return true;
@@ -50,7 +55,7 @@ class ValidPayableInvoicesRule implements Rule
      */
     public function message()
     {
-        return "One or more of these invoices have been paid";
+        return $this->error_msg;
     }
 
 }
diff --git a/app/Jobs/Invoice/ApplyClientPayment.php b/app/Jobs/Invoice/ApplyClientPayment.php
new file mode 100644
index 000000000000..29969d49949c
--- /dev/null
+++ b/app/Jobs/Invoice/ApplyClientPayment.php
@@ -0,0 +1,62 @@
+<?php
+/**
+ * Invoice Ninja (https://invoiceninja.com)
+ *
+ * @link https://github.com/invoiceninja/invoiceninja source repository
+ *
+ * @copyright Copyright (c) 2019. Invoice Ninja LLC (https://invoiceninja.com)
+ *
+ * @license https://opensource.org/licenses/AAL
+ */
+
+namespace App\Jobs\Invoice;
+
+use App\Events\Payment\PaymentWasCreated;
+use App\Factory\PaymentFactory;
+use App\Jobs\Client\UpdateClientBalance;
+use App\Jobs\Client\UpdateClientPaidToDate;
+use App\Jobs\Company\UpdateCompanyLedgerWithPayment;
+use App\Jobs\Invoice\ApplyPaymentToInvoice;
+use App\Models\Invoice;
+use App\Models\Payment;
+use App\Repositories\InvoiceRepository;
+use Illuminate\Bus\Queueable;
+use Illuminate\Contracts\Queue\ShouldQueue;
+use Illuminate\Foundation\Bus\Dispatchable;
+use Illuminate\Queue\InteractsWithQueue;
+use Illuminate\Queue\SerializesModels;
+
+class ApplyClientPayment implements ShouldQueue
+{
+    use Dispatchable, InteractsWithQueue, Queueable, SerializesModels;
+
+    public $payment;
+
+    /**
+     * Create a new job instance.
+     *
+     * @return void
+     */
+    public function __construct(Payment $payment)
+    {
+
+        $this->payment = $payment;
+
+    }
+
+    /**
+     * Execute the job.
+     *
+     * 
+     * @return void
+     */
+    public function handle()
+    {
+
+        $client = $this->payment->client;
+        $client->credit_balance += $this->payment->amount;
+        $client->save();
+
+    }
+
+}
\ No newline at end of file
diff --git a/app/Jobs/Invoice/ApplyInvoicePayment.php b/app/Jobs/Invoice/ApplyInvoicePayment.php
new file mode 100644
index 000000000000..86dcea30ad02
--- /dev/null
+++ b/app/Jobs/Invoice/ApplyInvoicePayment.php
@@ -0,0 +1,114 @@
+<?php
+/**
+ * Invoice Ninja (https://invoiceninja.com)
+ *
+ * @link https://github.com/invoiceninja/invoiceninja source repository
+ *
+ * @copyright Copyright (c) 2019. Invoice Ninja LLC (https://invoiceninja.com)
+ *
+ * @license https://opensource.org/licenses/AAL
+ */
+
+namespace App\Jobs\Invoice;
+
+use App\Events\Payment\PaymentWasCreated;
+use App\Factory\PaymentFactory;
+use App\Jobs\Client\UpdateClientBalance;
+use App\Jobs\Client\UpdateClientPaidToDate;
+use App\Jobs\Company\UpdateCompanyLedgerWithPayment;
+use App\Jobs\Invoice\ApplyPaymentToInvoice;
+use App\Models\Invoice;
+use App\Models\Payment;
+use App\Repositories\InvoiceRepository;
+use Illuminate\Bus\Queueable;
+use Illuminate\Contracts\Queue\ShouldQueue;
+use Illuminate\Foundation\Bus\Dispatchable;
+use Illuminate\Queue\InteractsWithQueue;
+use Illuminate\Queue\SerializesModels;
+
+class ApplyInvoicePayment implements ShouldQueue
+{
+    use Dispatchable, InteractsWithQueue, Queueable, SerializesModels;
+
+    public $invoice;
+
+    public $payment;
+
+    public $amount;
+    /**
+     * Create a new job instance.
+     *
+     * @return void
+     */
+    public function __construct(Invoice $invoice, Payment $payment, float $amount)
+    {
+
+        $this->invoice = $invoice;
+        $this->payment = $payment;
+        $this->amount = $amount;
+
+    }
+
+    /**
+     * Execute the job.
+     *
+     * 
+     * @return void
+     */
+    public function handle()
+    {
+
+        UpdateCompanyLedgerWithPayment::dispatchNow($this->payment, ($this->amount*-1));
+        UpdateClientBalance::dispatchNow($this->payment->client, $this->amount*-1);
+        UpdateClientPaidToDate::dispatchNow($this->payment->client, $this->amount);
+
+        /* Update Pivot Record amount */
+        $this->payment->invoices->each(function ($inv){
+
+            if($inv->id == $this->invoice->id){
+                $inv->pivot->amount = $this->amount;
+                $inv->pivot->save();
+            }
+
+        });
+
+
+        if($this->invoice->hasPartial())
+        {
+            //is partial and amount is exactly the partial amount
+            if($this->invoice->partial == $this->amount)
+            {
+                $this->invoice->clearPartial();
+                $this->invoice->setDueDate();
+                $this->invoice->setStatus(Invoice::STATUS_PARTIAL);
+                $this->invoice->updateBalance($this->amount*-1);
+            }
+            elseif($this->invoice->partial > 0 && $this->invoice->partial > $this->amount) //partial amount exists, but the amount is less than the partial amount
+            {
+            \Log::error("partial > amount");
+                $this->invoice->partial -= $this->amount;
+                $this->invoice->updateBalance($this->amount*-1);
+            }
+            elseif($this->invoice->partial > 0 && $this->invoice->partial < $this->amount) //partial exists and the amount paid is GREATER than the partial amount
+            {
+            \Log::error("partial < amount");
+                $this->invoice->clearPartial();
+                $this->invoice->setDueDate();
+                $this->invoice->setStatus(Invoice::STATUS_PARTIAL);
+                $this->invoice->updateBalance($this->amount*-1);
+            }
+
+        }
+        elseif($this->invoice->amount == $this->invoice->balance) //total invoice paid.
+        {
+            \Log::error("balance == amount");
+
+            $this->invoice->clearPartial();
+            $this->invoice->setDueDate();
+            $this->invoice->setStatus(Invoice::STATUS_PAID);
+            $this->invoice->updateBalance($this->amount*-1);
+        }
+
+
+    }
+}
\ No newline at end of file
diff --git a/app/Models/Invoice.php b/app/Models/Invoice.php
index 9e26c7e61cc2..55f2ddffcdb4 100644
--- a/app/Models/Invoice.php
+++ b/app/Models/Invoice.php
@@ -370,6 +370,7 @@ class Invoice extends BaseModel
         
         $balance_adjustment = floatval($balance_adjustment);
         
+        \Log::error("adjusting balance from ". $this->balance. " to ". ($this->balance + $balance_adjustment));
         $this->balance = $this->balance + $balance_adjustment;
 
         if($this->balance == 0) {
@@ -385,8 +386,7 @@ class Invoice extends BaseModel
 
     public function setDueDate()
     {
-
-        $this->due_date = Carbon::now()->addDays(PaymentTerm::find($this->company->settings->payment_terms_id)->num_days);
+        $this->due_date = Carbon::now()->addDays($this->client->getSetting('payment_terms'));
         $this->save();
     }
 
diff --git a/app/Repositories/PaymentRepository.php b/app/Repositories/PaymentRepository.php
index 6cc167c49c44..804c3e8c15a0 100644
--- a/app/Repositories/PaymentRepository.php
+++ b/app/Repositories/PaymentRepository.php
@@ -14,6 +14,8 @@ namespace App\Repositories;
 use App\Events\Payment\PaymentWasCreated;
 use App\Jobs\Company\UpdateCompanyLedgerWithPayment;
 use App\Jobs\Invoice\UpdateInvoicePayment;
+use App\Jobs\Invoice\ApplyInvoicePayment;
+use App\Jobs\Invoice\ApplyClientPayment;
 use App\Models\Invoice;
 use App\Models\Payment;
 use Illuminate\Http\Request;
@@ -39,17 +41,31 @@ class PaymentRepository extends BaseRepository
         if($request->input('invoices')) 
         {
 
-            $invoices = Invoice::whereIn('id', $request->input('invoices'))->get();
+            $invoices = Invoice::whereIn('id', array_column($request->input('invoices'),'id'))->company()->get();
 
             $payment->invoices()->saveMany($invoices);
     
+            foreach($request->input('invoices') as $paid_invoice)
+            {
+
+                $invoice = Invoice::whereId($paid_invoice['id'])->company()->first();
+
+                if($invoice)
+                    ApplyInvoicePayment::dispatchNow($invoice, $payment, $paid_invoice['amount']);
+
+            }
+
+        }
+        else {
+            //paid is made, but not to any invoice, therefore we are applying the payment to the clients credit
+            ApplyClientPayment::dispatchNow($payment);
         }
 
         event(new PaymentWasCreated($payment));
 
-        UpdateInvoicePayment::dispatchNow($payment);
+        //UpdateInvoicePayment::dispatchNow($payment);
 
-        return $payment;
+        return $payment->fresh();
 
 	}
 
diff --git a/app/Transformers/ClientTransformer.php b/app/Transformers/ClientTransformer.php
index e65a9007eecf..2ac5f7e8546c 100644
--- a/app/Transformers/ClientTransformer.php
+++ b/app/Transformers/ClientTransformer.php
@@ -86,6 +86,7 @@ class ClientTransformer extends EntityTransformer
             'balance' => (float) $client->balance,
             'group_settings_id' => isset($client->group_settings_id) ? (string)$this->encodePrimaryKey($client->group_settings_id) : '',
             'paid_to_date' => (float) $client->paid_to_date,
+            'credit_balance' => (float) $client->credit_balance,
             'last_login' => (int)$client->last_login,
         //    'currency_id' => (string)$client->currency_id,
             'address1' => $client->address1 ?: '',
diff --git a/database/migrations/2014_10_13_000000_create_users_table.php b/database/migrations/2014_10_13_000000_create_users_table.php
index 0d46258c3aa1..0beb235efb09 100644
--- a/database/migrations/2014_10_13_000000_create_users_table.php
+++ b/database/migrations/2014_10_13_000000_create_users_table.php
@@ -295,6 +295,7 @@ class CreateUsersTable extends Migration
 
             $table->decimal('balance', 16, 4)->default(0);
             $table->decimal('paid_to_date', 16, 4)->default(0);
+            $table->decimal('credit_balance', 16, 4)->default(0);
             $table->timestamp('last_login')->nullable();
             $table->unsignedInteger('industry_id')->nullable();
             $table->unsignedInteger('size_id')->nullable();
diff --git a/tests/Feature/PaymentTest.php b/tests/Feature/PaymentTest.php
index dbf743326459..09dd91d675c0 100644
--- a/tests/Feature/PaymentTest.php
+++ b/tests/Feature/PaymentTest.php
@@ -129,7 +129,12 @@ class PaymentTest extends TestCase
 
         $data = [
             'amount' => $this->invoice->amount,
-            'invoices' => $this->invoice->hashed_id,
+            'invoices' => [
+                [
+                'id' => $this->invoice->hashed_id,
+                'amount' => $this->invoice->amount
+                ],
+            ],
             'payment_date' => '2020/12/11',
 
         ];
@@ -174,11 +179,17 @@ class PaymentTest extends TestCase
         $data = [
             'amount' => $this->invoice->amount,
             'client_id' => $client->hashed_id,
-            'invoices' => $this->invoice->hashed_id,
+            'invoices' => [
+                [
+                'id' => $this->invoice->hashed_id,
+                'amount' => $this->invoice->amount
+                ],
+            ],
             'payment_date' => '2020/12/12',
 
         ];
 
+        $response = null;
 
         try {
             $response = $this->withHeaders([
@@ -194,12 +205,20 @@ class PaymentTest extends TestCase
             $this->assertNotNull($message);
 
         }
-
-            $arr = $response->json();
-           // \Log::error($arr);
-            $response->assertStatus(200);
         
-    
+        if($response){
+            $arr = $response->json();
+            $response->assertStatus(200);
+
+            $payment_id = $arr['data']['id'];
+
+            $payment = Payment::find($this->decodePrimaryKey($payment_id))->first();
+
+            $this->assertNotNull($payment);
+            $this->assertNotNull($payment->invoices());
+            $this->assertEquals(1, $payment->invoices()->count());
+        }
+
     }
 
     public function testStorePaymentWithNoInvoiecs()
@@ -212,7 +231,7 @@ class PaymentTest extends TestCase
         $this->invoice->status_id = Invoice::STATUS_SENT;
 
         $this->invoice->line_items = $this->buildLineItems();
-        $this->invoice->uses_inclusive_Taxes = false;
+        $this->invoice->uses_inclusive_taxes = false;
 
         $this->invoice->save();
 
@@ -241,9 +260,72 @@ class PaymentTest extends TestCase
         catch(ValidationException $e) {
             $message = json_decode($e->validator->getMessageBag(),1);
             $this->assertNotNull($message);
-
         }
     
+        if($response)
+            $response->assertStatus(200);
+    }
+
+    public function testPartialPaymentAmount()
+    {
+        $this->invoice = null;
+
+        $client = ClientFactory::create($this->company->id, $this->user->id);
+        $client->save();
+
+        $this->invoice = InvoiceFactory::create($this->company->id,$this->user->id);//stub the company and user_id
+        $this->invoice->client_id = $client->id;
+
+        $this->invoice->partial = 2.0;
+        $this->invoice->line_items = $this->buildLineItems();
+        $this->invoice->uses_inclusive_taxes = false;
+
+        $this->invoice->save();
+
+        $this->invoice_calc = new InvoiceSum($this->invoice);
+        $this->invoice_calc->build();
+
+        $this->invoice = $this->invoice_calc->getInvoice();
+        $this->invoice->save();
+        $this->invoice->markSent();
+        $this->invoice->save();
+
+
+        $data = [
+            'amount' => 2.0,
+            'client_id' => $client->hashed_id,
+            'invoices' => [
+                [
+                'id' => $this->invoice->hashed_id,
+                'amount' => 2.0
+                ],
+            ],
+            'payment_date' => '2019/12/12',
+        ];
+
+
+            $response = $this->withHeaders([
+                'X-API-SECRET' => config('ninja.api_secret'),
+                'X-API-TOKEN' => $this->token,
+            ])->post('/api/v1/payments?include=invoices', $data);
+
+            $arr = $response->json();
+            $response->assertStatus(200);
+
+            $payment_id = $arr['data']['id'];
+
+            $payment = Payment::find($this->decodePrimaryKey($payment_id))->first();
+
+            $this->assertNotNull($payment);
+            $this->assertNotNull($payment->invoices());
+            $this->assertEquals(1, $payment->invoices()->count());
+
+            $pivot_invoice = $payment->invoices()->first();
+            $this->assertEquals($pivot_invoice->pivot->amount, 2);
+            $this->assertEquals($pivot_invoice->partial, 0);
+            $this->assertEquals($pivot_invoice->amount, 10.0000);
+            $this->assertEquals($pivot_invoice->balance, 8.0000);
+            
     }
 
 }