diff --git a/src/PowderCoating.Web/Controllers/InvoicesController.cs b/src/PowderCoating.Web/Controllers/InvoicesController.cs
index d6ad3ab..39ed6af 100644
--- a/src/PowderCoating.Web/Controllers/InvoicesController.cs
+++ b/src/PowderCoating.Web/Controllers/InvoicesController.cs
@@ -1499,6 +1499,29 @@ public class InvoicesController : Controller
                 await _unitOfWork.Payments.SoftDeleteAsync(payment.Id);
             }
 
+            // Re-release any deposits that were applied to this invoice so they can be
+            // auto-applied to the replacement invoice. Without this, AppliedToInvoiceId
+            // stays set and the deposit lookup (AppliedToInvoiceId == null) skips them.
+            var appliedDeposits = await _unitOfWork.Deposits.FindAsync(
+                d => d.AppliedToInvoiceId == invoice.Id && !d.IsDeleted);
+            var totalDepositReleased = 0m;
+            foreach (var deposit in appliedDeposits)
+            {
+                deposit.AppliedToInvoiceId = null;
+                deposit.AppliedDate = null;
+                deposit.UpdatedAt = DateTime.UtcNow;
+                await _unitOfWork.Deposits.UpdateAsync(deposit);
+                totalDepositReleased += deposit.Amount;
+            }
+            // Restore the CustomerDeposits 2300 liability that was cleared when the deposits
+            // were applied. Mirrors the DR at apply time; follows the same simplified reversal
+            // pattern as the rest of the void (regular payment GL entries are also left as-is).
+            if (totalDepositReleased > 0)
+            {
+                var custDepositsAcctId = await GetCustomerDepositsAccountIdAsync(invoice.CompanyId);
+                await _accountBalanceService.CreditAsync(custDepositsAcctId, totalDepositReleased);
+            }
+
             // Void any gift certificates that were generated from this invoice.
             // Capture each GC's remaining balance BEFORE voiding so the GL entries below can use it.
             var gcLiabilityAcctId = await GetGcLiabilityAccountIdAsync(invoice.CompanyId);