diff --git a/app/Http/Requests/Payment/StorePaymentRequest.php b/app/Http/Requests/Payment/StorePaymentRequest.php
index b178717caa1e..97736fda7a55 100644
--- a/app/Http/Requests/Payment/StorePaymentRequest.php
+++ b/app/Http/Requests/Payment/StorePaymentRequest.php
@@ -85,8 +85,6 @@ class StorePaymentRequest extends Request
             $input['amount'] = $invoices_total - $credits_total;
         }
 
-        // $input['is_manual'] = true;
-
         if (! isset($input['date'])) {
             $input['date'] = now()->addSeconds(auth()->user()->company()->timezone()->utc_offset)->format('Y-m-d');
         }
diff --git a/app/Http/ValidationRules/Credit/ValidCreditsRules.php b/app/Http/ValidationRules/Credit/ValidCreditsRules.php
index b0892da7330e..d02097df2159 100644
--- a/app/Http/ValidationRules/Credit/ValidCreditsRules.php
+++ b/app/Http/ValidationRules/Credit/ValidCreditsRules.php
@@ -64,7 +64,6 @@ class ValidCreditsRules implements Rule
         foreach ($this->input['credits'] as $credit) {
             $unique_array[] = $credit['credit_id'];
 
-            // $cred = Credit::find($this->decodePrimaryKey($credit['credit_id']));
             $cred = $cred_collection->firstWhere('id', $credit['credit_id']);
 
             if (! $cred) {
@@ -77,6 +76,11 @@ class ValidCreditsRules implements Rule
                 return false;
             }
 
+            if($cred->status_id == Credit::STATUS_DRAFT){
+                $cred->service()->markSent()->save();
+                $cred = $cred->fresh();
+            }
+
             if($cred->balance < $credit['amount']) {
                 $this->error_msg = ctrans('texts.insufficient_credit_balance');
                 return false;
diff --git a/tests/Feature/CreditTest.php b/tests/Feature/CreditTest.php
index 0e830189e813..f67aa96db9b4 100644
--- a/tests/Feature/CreditTest.php
+++ b/tests/Feature/CreditTest.php
@@ -27,6 +27,8 @@ class CreditTest extends TestCase
     use DatabaseTransactions;
     use MockAccountData;
 
+    public $faker;
+    
     protected function setUp(): void
     {
         parent::setUp();
diff --git a/tests/Feature/PaymentV2Test.php b/tests/Feature/PaymentV2Test.php
index 5f1f386ef173..3365b42adf3f 100644
--- a/tests/Feature/PaymentV2Test.php
+++ b/tests/Feature/PaymentV2Test.php
@@ -58,6 +58,78 @@ class PaymentV2Test extends TestCase
         );
     }
 
+    public function testUsingDraftCreditsForPayments()
+    {
+
+        $invoice = Invoice::factory()->create([ 
+            'company_id' => $this->company->id,
+            'user_id' => $this->user->id,
+            'client_id' => $this->client->id,
+            'status_id' => Invoice::STATUS_SENT,
+            'uses_inclusive_taxes' => false,
+            'amount' => 20,
+            'balance' => 20,
+            'discount' => 0,
+            'number' => uniqid("st", true),
+            'line_items' => []
+        ]);
+
+        $item = InvoiceItemFactory::generateCredit();
+        $item['cost'] = 20;
+        $item['quantity'] = 1;
+
+        $credit = Credit::factory()->create([
+            'company_id' => $this->company->id,
+            'user_id' => $this->user->id,
+            'client_id' => $this->client->id,
+            'status_id' => Credit::STATUS_DRAFT,
+            'uses_inclusive_taxes' => false,
+            'amount' => 20,
+            'balance' => 0,
+            'discount' => 0,
+            'number' => uniqid("st", true),
+            'line_items' => [
+                $item
+            ]
+        ]);
+
+        $data = [
+                    'client_id' => $this->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;
+
+            $response = $this->withHeaders([
+                'X-API-SECRET' => config('ninja.api_secret'),
+                'X-API-TOKEN' => $this->token,
+            ])->postJson('/api/v1/payments?include=invoices', $data);
+
+        $arr = $response->json();
+        $response->assertStatus(200);
+
+        $payment_id = $arr['data']['id'];
+        $this->assertEquals(Credit::STATUS_APPLIED, $credit->fresh()->status_id);
+        $this->assertEquals(Invoice::STATUS_PAID, $invoice->fresh()->status_id);
+
+        $this->assertEquals(0, $credit->fresh()->balance);
+        $this->assertEquals(0, $invoice->fresh()->balance);
+
+    }
+
     public function testStorePaymentWithCreditsThenDeletingInvoices()
     {
         $client = Client::factory()->create(['company_id' =>$this->company->id, 'user_id' => $this->user->id, 'balance' => 20, 'paid_to_date' => 0]);