diff --git a/app/Factory/CreditFactory.php b/app/Factory/CreditFactory.php
new file mode 100644
index 000000000000..2c4a59787b4c
--- /dev/null
+++ b/app/Factory/CreditFactory.php
@@ -0,0 +1,53 @@
+<?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\Factory;
+
+use App\Models\Credit;
+
+class CreditFactory
+{
+    public static function create(int $company_id, int $user_id) :Credit
+    {
+        $credit = new Credit();
+        $credit->status_id = Credit::STATUS_DRAFT;
+        $credit->number = null;
+        $credit->discount = 0;
+        $credit->is_amount_discount = true;
+        $credit->po_number = '';
+        $credit->footer = '';
+        $credit->terms = '';
+        $credit->public_notes = '';
+        $credit->private_notes = '';
+        $credit->date = null;
+        $credit->due_date = null;
+        $credit->partial_due_date = null;
+        $credit->is_deleted = false;
+        $credit->line_items = json_encode([]);
+        $credit->backup = json_encode([]);
+        $credit->tax_name1 = '';
+        $credit->tax_rate1 = 0;
+        $credit->tax_name2 = '';
+        $credit->tax_rate2 = 0;
+        $credit->custom_value1 = 0;
+        $credit->custom_value2 = 0;
+        $credit->custom_value3 = 0;
+        $credit->custom_value4 = 0;
+        $credit->amount = 0;
+        $credit->balance = 0;
+        $credit->partial = 0;
+        $credit->user_id = $user_id;
+        $credit->company_id = $company_id;
+        $credit->recurring_id = null;
+        
+        return $credit;
+    }
+}
diff --git a/app/Factory/InvoiceItemFactory.php b/app/Factory/InvoiceItemFactory.php
index 9848c8ba9e51..24bb555db400 100644
--- a/app/Factory/InvoiceItemFactory.php
+++ b/app/Factory/InvoiceItemFactory.php
@@ -68,7 +68,7 @@ class InvoiceItemFactory
             $item->custom_value3 = $faker->realText(10);
             $item->custom_value4 = $faker->realText(10);
             $item->tax_name1 = 'GST';
-            $item->tax_rate1 = '10.00';
+            $item->tax_rate1 = 10.00;
             
             $data[] = $item;
         }
diff --git a/app/Repositories/CreditRepository.php b/app/Repositories/CreditRepository.php
new file mode 100644
index 000000000000..e1974936a6ff
--- /dev/null
+++ b/app/Repositories/CreditRepository.php
@@ -0,0 +1,49 @@
+<?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\Repositories;
+
+use App\Models\Credit;
+use Illuminate\Http\Request;
+
+/**
+ * CreditRepository
+ */
+class CreditRepository extends BaseRepository
+{
+    public function __construct()
+    {
+    }
+
+    /**
+     * Gets the class name.
+     *
+     * @return     string The class name.
+     */
+    public function getClassName()
+    {
+        return Credit::class;
+    }
+
+    /**
+     * Saves the client and its contacts
+     *
+     * @param      array                           $data    The data
+     * @param      \App\Models\Company              $client  The Company
+     *
+     * @return     Credit|\App\Models\Credit|null  Credit Object
+     */
+    public function save(array $data, Credit $credit) : ?Credit
+    {
+
+    }
+
+}
\ No newline at end of file
diff --git a/app/Repositories/PaymentRepository.php b/app/Repositories/PaymentRepository.php
index 16fcd186b95a..1f9f72d0a956 100644
--- a/app/Repositories/PaymentRepository.php
+++ b/app/Repositories/PaymentRepository.php
@@ -13,11 +13,12 @@ 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\Jobs\Invoice\ApplyInvoicePayment;
+use App\Jobs\Invoice\UpdateInvoicePayment;
 use App\Models\Invoice;
 use App\Models\Payment;
+use App\Repositories\CreditRepository;
 use Illuminate\Http\Request;
 
 /**
@@ -25,6 +26,15 @@ use Illuminate\Http\Request;
  */
 class PaymentRepository extends BaseRepository
 {
+    protected $credit_repo;
+
+    public function __construct(CreditRepository $credit_repo)
+    {
+
+        $this->credit_repo = $credit_repo;
+
+    } 
+
     public function getClassName()
     {
         return Payment::class;
@@ -46,7 +56,8 @@ class PaymentRepository extends BaseRepository
         $payment->status_id = Payment::STATUS_COMPLETED;
         $payment->save();
         
-        if ($request->has('invoices')) {
+        if ($request->input('invoices')) {
+            \Log::error('invoices found');
             $invoices = Invoice::whereIn('id', array_column($request->input('invoices'), 'id'))->company()->get();
 
             $payment->invoices()->saveMany($invoices);
@@ -104,11 +115,22 @@ class PaymentRepository extends BaseRepository
         if($request->has('invoices')){
             
             foreach($request->input('invoices') as $adjusted_invoice) {
+
                 $invoice = Invoice::whereId($adjusted_invoice['id'])->company()->first();
                 $invoice_total_adjustment += $adjusted_invoice['amount'];
 
-                if(!array_key_exists('credit', $adjusted_invoice)){
-                    //todo - generate Credit Note for $amount on $invoice - the assumption here is that it is a FULL refund
+                if(array_key_exists('credits', $adjusted_invoice)){
+                    
+                    //process and insert credit notes
+                    foreach($adjusted_invoice['credits'] as $credit){
+
+                        $credit = $this->credit_repo->save($credit, );
+
+                    }
+
+                }
+                else {
+                    //todo - generate Credit Note for $amount on $invoice - the assumption here is that it is a FULL refund        
                 }
 
             }