diff --git a/app/Services/Payment/DeletePayment.php b/app/Services/Payment/DeletePayment.php
index a13697e63a..a462c23195 100644
--- a/app/Services/Payment/DeletePayment.php
+++ b/app/Services/Payment/DeletePayment.php
@@ -139,10 +139,12 @@ class DeletePayment
 
                     // 2025-03-26 - If we are deleting a negative payment, then there is an edge case where the paid to date will be reduced further down.
                     // for this scenario, we skip the update to the client paid to date at this point.
+
+                    //2025-08-19 - if there is an unapplied amount, we need to subtract it from the paid to date.
                     $this->payment
                          ->client
                          ->service()
-                         ->updateBalanceAndPaidToDate($net_deletable, ($net_deletable * -1) > 0 ? 0 : ($net_deletable * -1)) // if negative, set to 0, the paid to date will be reduced further down.
+                         ->updateBalanceAndPaidToDate($net_deletable, ($net_deletable * -1) > 0 ? 0 : ($net_deletable * -1 - ($this->payment->amount - $this->payment->applied))) // if negative, set to 0, the paid to date will be reduced further down.
                          ->save();
 
                     if (abs(floatval($paymentable_invoice->balance) - floatval($paymentable_invoice->amount)) < 0.005) {
@@ -172,6 +174,7 @@ class DeletePayment
 
             $reduced_paid_to_date = $this->payment->amount < 0 ? $this->payment->amount * -1 : min(0, ($this->payment->amount - $this->payment->refunded - $this->_paid_to_date_deleted) * -1);
 
+            nlog("reduced paid to date: {$reduced_paid_to_date}");
             if($reduced_paid_to_date != 0) {
                 $this->payment
                     ->client
diff --git a/tests/Feature/CreditTest.php b/tests/Feature/CreditTest.php
index ac34a0ab25..35d9cb6cfc 100644
--- a/tests/Feature/CreditTest.php
+++ b/tests/Feature/CreditTest.php
@@ -11,15 +11,17 @@
 
 namespace Tests\Feature;
 
-use App\DataMapper\InvoiceItem;
 use App\Models\Client;
-use App\Models\ClientContact;
 use App\Models\Credit;
-use App\Utils\Traits\MakesHash;
-use Illuminate\Database\Eloquent\Model;
-use Illuminate\Foundation\Testing\DatabaseTransactions;
-use Illuminate\Support\Facades\Session;
+use App\Models\ClientContact;
+use App\DataMapper\InvoiceItem;
 use Tests\MockAccountData;
+use App\Utils\Traits\MakesHash;
+use App\Repositories\InvoiceRepository;
+use App\Repositories\CreditRepository;
+use Illuminate\Database\Eloquent\Model;
+use Illuminate\Support\Facades\Session;
+use Illuminate\Foundation\Testing\DatabaseTransactions;
 use Tests\TestCase;
 
 class CreditTest extends TestCase
@@ -43,6 +45,125 @@ class CreditTest extends TestCase
         $this->makeTestData();
     }
 
+
+    public function testPartialAmountWithPartialCreditAndPaymentDeletedBalance()
+    {
+
+             
+        $c = Client::factory()->create([
+            'company_id' => $this->company->id,
+            'user_id' => $this->user->id,
+            'balance' => 0,
+            'paid_to_date' => 0,
+        ]);
+        
+        $ii = new InvoiceItem();
+        $ii->cost = 100;
+        $ii->quantity = 1;
+        $ii->product_key = 'xx';
+        $ii->notes = 'yy';
+
+        $i = \App\Models\Invoice::factory()->create([
+            'company_id' => $this->company->id,
+            'user_id' => $this->user->id,
+            'client_id' => $c->id,
+            'tax_name1' => '',
+            'tax_name2' => '',
+            'tax_name3' => '',
+            'tax_rate1' => 0,
+            'tax_rate2' => 0,
+            'tax_rate3' => 0,
+            'discount' => 0,
+            'line_items' => [
+                $ii
+            ],
+            'status_id' => 1,
+        ]);
+
+        $repo = new InvoiceRepository();
+        $repo->save([], $i);
+        
+        $i = $i->calc()->getInvoice();
+        $i = $i->service()->markSent()->save();
+
+        $this->assertEquals(100, $i->balance);
+        $this->assertEquals(100, $i->amount);
+
+        $cr = \App\Models\Credit::factory()->create([
+                'company_id' => $this->company->id,
+                'user_id' => $this->user->id,
+                'client_id' => $c->id,
+                'tax_name1' => '',
+                'tax_name2' => '',
+                'tax_name3' => '',
+                'tax_rate1' => 0,
+                'tax_rate2' => 0,
+                'tax_rate3' => 0,
+                'discount' => 0,
+                'line_items' => [
+                    $ii
+                ],
+                'status_id' => 1,
+            ]);
+
+        $repo = new CreditRepository();
+        $repo->save([], $cr);
+
+        $cr = $cr->calc()->getInvoice();
+        $cr = $cr->service()->markSent()->save();
+
+        $this->assertEquals(100, $cr->balance);
+        $this->assertEquals(100, $cr->amount);
+
+        
+        $data = [
+                'date' => '2020/12/12',
+                'client_id' => $c->hashed_id,
+                'amount' => 10,
+                'invoices' => [
+                    [
+                        'invoice_id' => $i->hashed_id,
+                        'amount' => 10
+                    ],
+                ],
+                'credits' => [
+                    [
+                        'credit_id' => $cr->hashed_id,
+                        'amount' => 10
+                    ]
+                ],
+            ];
+
+        $response = $this->withHeaders([
+            'X-API-SECRET' => config('ninja.api_secret'),
+            'X-API-TOKEN' => $this->token,
+        ])->postJson('/api/v1/payments', $data);
+
+        $response->assertStatus(200);
+
+        $arr = $response->json();
+
+        $this->assertEquals(10, $arr['data']['amount']);
+
+        $this->assertEquals(20, $c->fresh()->paid_to_date);
+        $this->assertEquals(90, $i->fresh()->balance);
+        $this->assertEquals(90, $cr->fresh()->balance);
+
+        $response = $this->withHeaders([
+            'X-API-SECRET' => config('ninja.api_secret'),
+            'X-API-TOKEN' => $this->token,
+        ])->deleteJson('/api/v1/payments/'.$arr['data']['id']);
+
+        $response->assertStatus(200);
+
+        $this->assertEquals(100, $i->fresh()->balance);
+        $this->assertEquals(100, $cr->fresh()->balance);
+        $this->assertEquals(100, $c->fresh()->balance);
+        $this->assertEquals(0, $c->fresh()->paid_to_date);
+
+
+    }
+
     public function testCreditReversalScenarioInvoicePartiallyPaid()
     {
              
@@ -117,6 +238,8 @@ class CreditTest extends TestCase
 
         $this->assertEquals(0, $c->balance);
         $this->assertEquals(6, $i->status_id);
+
+
     }