diff --git a/integration-tests/http/__tests__/claims/claims.spec.ts b/integration-tests/http/__tests__/claims/claims.spec.ts
index 5e7d79f655..7960ff7509 100644
--- a/integration-tests/http/__tests__/claims/claims.spec.ts
+++ b/integration-tests/http/__tests__/claims/claims.spec.ts
@@ -735,7 +735,8 @@ medusaIntegrationTestRunner({
           )
         })
 
-        it("should create a payment collection successfully", async () => {
+        it("should create a payment collection successfully & mark as paid", async () => {
+          const paymentDelta = 171.5
           const orderForPayment = (
             await api.get(`/admin/orders/${order.id}`, adminHeaders)
           ).data.order
@@ -746,12 +747,12 @@ medusaIntegrationTestRunner({
           expect(paymentCollections[0]).toEqual(
             expect.objectContaining({
               status: "not_paid",
-              amount: 171.5,
+              amount: paymentDelta,
               currency_code: "usd",
             })
           )
 
-          const paymentCollection = (
+          const createdPaymentCollection = (
             await api.post(
               `/admin/payment-collections`,
               { order_id: order.id, amount: 100 },
@@ -759,7 +760,7 @@ medusaIntegrationTestRunner({
             )
           ).data.payment_collection
 
-          expect(paymentCollection).toEqual(
+          expect(createdPaymentCollection).toEqual(
             expect.objectContaining({
               currency_code: "usd",
               amount: 100,
@@ -769,16 +770,35 @@ medusaIntegrationTestRunner({
 
           const deleted = (
             await api.delete(
-              `/admin/payment-collections/${paymentCollections[0].id}`,
+              `/admin/payment-collections/${createdPaymentCollection.id}`,
               adminHeaders
             )
           ).data
 
           expect(deleted).toEqual({
-            id: expect.any(String),
+            id: createdPaymentCollection.id,
             object: "payment-collection",
             deleted: true,
           })
+
+          const finalPaymentCollection = (
+            await api.post(
+              `/admin/payment-collections/${paymentCollections[0].id}/mark-as-paid`,
+              { order_id: order.id },
+              adminHeaders
+            )
+          ).data.payment_collection
+
+          expect(finalPaymentCollection).toEqual(
+            expect.objectContaining({
+              currency_code: "usd",
+              amount: paymentDelta,
+              status: "authorized",
+              authorized_amount: paymentDelta,
+              captured_amount: paymentDelta,
+              refunded_amount: 0,
+            })
+          )
         })
       })
 
diff --git a/packages/admin-next/dashboard/src/hooks/api/payment-collections.tsx b/packages/admin-next/dashboard/src/hooks/api/payment-collections.tsx
index 8164cda952..557ff4d457 100644
--- a/packages/admin-next/dashboard/src/hooks/api/payment-collections.tsx
+++ b/packages/admin-next/dashboard/src/hooks/api/payment-collections.tsx
@@ -35,6 +35,32 @@ export const useCreatePaymentCollection = (
   })
 }
 
+export const useMarkPaymentCollectionAsPaid = (
+  paymentCollectionId: string,
+  options?: UseMutationOptions<
+    HttpTypes.AdminPaymentCollectionResponse,
+    Error,
+    HttpTypes.AdminMarkPaymentCollectionAsPaid
+  >
+) => {
+  return useMutation({
+    mutationFn: (payload) =>
+      sdk.admin.paymentCollection.markAsPaid(paymentCollectionId, payload),
+    onSuccess: (data, variables, context) => {
+      queryClient.invalidateQueries({
+        queryKey: ordersQueryKeys.all,
+      })
+
+      queryClient.invalidateQueries({
+        queryKey: paymentCollectionQueryKeys.all,
+      })
+
+      options?.onSuccess?.(data, variables, context)
+    },
+    ...options,
+  })
+}
+
 export const useDeletePaymentCollection = (
   options?: Omit<
     UseMutationOptions<
diff --git a/packages/admin-next/dashboard/src/i18n/translations/en.json b/packages/admin-next/dashboard/src/i18n/translations/en.json
index 4c890b0318..d3b6133df3 100644
--- a/packages/admin-next/dashboard/src/i18n/translations/en.json
+++ b/packages/admin-next/dashboard/src/i18n/translations/en.json
@@ -814,6 +814,7 @@
       "totalPaidByCustomer": "Total paid by customer",
       "capture": "Capture payment",
       "refund": "Refund",
+      "markAsPaid": "Mark as paid",
       "statusLabel": "Payment status",
       "statusTitle": "Payment Status",
       "status": {
@@ -830,6 +831,8 @@
       },
       "capturePayment": "Payment of {{amount}} will be captured.",
       "capturePaymentSuccess": "Payment of {{amount}} successfully captured",
+      "markAsPaidPayment": "Payment of {{amount}} will be marked as paid.",
+      "markAsPaidPaymentSuccess": "Payment of {{amount}} successfully marked as paid",
       "createRefund": "Create Refund",
       "refundPaymentSuccess": "Refund of amount {{amount}} successful",
       "createRefundWrongQuantity": "Quantity should be a number between 1 and {{number}}",
diff --git a/packages/admin-next/dashboard/src/routes/orders/order-detail/components/order-summary-section/order-summary-section.tsx b/packages/admin-next/dashboard/src/routes/orders/order-detail/components/order-summary-section/order-summary-section.tsx
index 31658f7984..c932fc11e9 100644
--- a/packages/admin-next/dashboard/src/routes/orders/order-detail/components/order-summary-section/order-summary-section.tsx
+++ b/packages/admin-next/dashboard/src/routes/orders/order-detail/components/order-summary-section/order-summary-section.tsx
@@ -27,18 +27,23 @@ import {
   Heading,
   StatusBadge,
   Text,
+  toast,
   Tooltip,
+  usePrompt,
 } from "@medusajs/ui"
 
+import { AdminPaymentCollection } from "../../../../../../../../core/types/dist/http/payment/admin/entities"
 import { ActionMenu } from "../../../../../components/common/action-menu"
 import { ButtonMenu } from "../../../../../components/common/button-menu/button-menu.tsx"
 import { Thumbnail } from "../../../../../components/common/thumbnail"
 import { useClaims } from "../../../../../hooks/api/claims.tsx"
 import { useExchanges } from "../../../../../hooks/api/exchanges.tsx"
 import { useOrderPreview } from "../../../../../hooks/api/orders.tsx"
+import { useMarkPaymentCollectionAsPaid } from "../../../../../hooks/api/payment-collections.tsx"
 import { useReservationItems } from "../../../../../hooks/api/reservations"
 import { useReturns } from "../../../../../hooks/api/returns"
 import { useDate } from "../../../../../hooks/use-date"
+import { formatCurrency } from "../../../../../lib/format-currency.ts"
 import {
   getLocaleAmount,
   getStylizedAmount,
@@ -54,6 +59,7 @@ type OrderSummarySectionProps = {
 export const OrderSummarySection = ({ order }: OrderSummarySectionProps) => {
   const { t } = useTranslation()
   const navigate = useNavigate()
+  const prompt = usePrompt()
 
   const { reservations } = useReservationItems(
     {
@@ -104,10 +110,54 @@ export const OrderSummarySection = ({ order }: OrderSummarySectionProps) => {
     (pc) => pc.status === "not_paid"
   )
 
+  const { mutateAsync: markAsPaid } = useMarkPaymentCollectionAsPaid(
+    unpaidPaymentCollection?.id!
+  )
+
   const showPayment =
     unpaidPaymentCollection && (order?.summary?.pending_difference || 0) > 0
   const showRefund = (order?.summary?.pending_difference || 0) < 0
 
+  const handleMarkAsPaid = async (
+    paymentCollection: AdminPaymentCollection
+  ) => {
+    const res = await prompt({
+      title: t("orders.payment.markAsPaid"),
+      description: t("orders.payment.markAsPaidPayment", {
+        amount: formatCurrency(
+          paymentCollection.amount as number,
+          order.currency_code
+        ),
+      }),
+      confirmText: t("actions.confirm"),
+      cancelText: t("actions.cancel"),
+      variant: "confirmation",
+    })
+
+    if (!res) {
+      return
+    }
+
+    await markAsPaid(
+      { order_id: order.id },
+      {
+        onSuccess: () => {
+          toast.success(
+            t("orders.payment.markAsPaidPaymentSuccess", {
+              amount: formatCurrency(
+                paymentCollection.amount as number,
+                order.currency_code
+              ),
+            })
+          )
+        },
+        onError: (error) => {
+          toast.error(error.message)
+        },
+      }
+    )
+  }
+
   return (
     <Container className="divide-y divide-dashed p-0">
       <Header order={order} orderPreview={orderPreview} />
@@ -152,6 +202,16 @@ export const OrderSummarySection = ({ order }: OrderSummarySectionProps) => {
               order={order}
             />
           )}
+
+          {showPayment && (
+            <Button
+              size="small"
+              variant="secondary"
+              onClick={() => handleMarkAsPaid(unpaidPaymentCollection)}
+            >
+              {t("orders.payment.markAsPaid")}
+            </Button>
+          )}
         </div>
       )}
     </Container>
diff --git a/packages/core/core-flows/src/order/workflows/index.ts b/packages/core/core-flows/src/order/workflows/index.ts
index 92273db68e..f6e6294c9c 100644
--- a/packages/core/core-flows/src/order/workflows/index.ts
+++ b/packages/core/core-flows/src/order/workflows/index.ts
@@ -41,6 +41,7 @@ export * from "./exchange/update-exchange-add-item"
 export * from "./exchange/update-exchange-shipping-method"
 export * from "./get-order-detail"
 export * from "./get-orders-list"
+export * from "./mark-payment-collection-as-paid"
 export * from "./order-edit/begin-order-edit"
 export * from "./order-edit/cancel-begin-order-edit"
 export * from "./order-edit/confirm-order-edit-request"
diff --git a/packages/core/core-flows/src/order/workflows/mark-payment-collection-as-paid.ts b/packages/core/core-flows/src/order/workflows/mark-payment-collection-as-paid.ts
new file mode 100644
index 0000000000..d02029183a
--- /dev/null
+++ b/packages/core/core-flows/src/order/workflows/mark-payment-collection-as-paid.ts
@@ -0,0 +1,79 @@
+import { PaymentCollectionDTO } from "@medusajs/types"
+import { MedusaError } from "@medusajs/utils"
+import {
+  WorkflowData,
+  WorkflowResponse,
+  createStep,
+  createWorkflow,
+} from "@medusajs/workflows-sdk"
+import { useRemoteQueryStep } from "../../common"
+import { createPaymentSessionsWorkflow } from "../../definition"
+import {
+  authorizePaymentSessionStep,
+  capturePaymentWorkflow,
+} from "../../payment"
+
+/**
+ * This step validates that the payment collection is not_paid
+ */
+export const throwUnlessPaymentCollectionNotPaid = createStep(
+  "validate-existing-payment-collection",
+  ({ paymentCollection }: { paymentCollection: PaymentCollectionDTO }) => {
+    if (paymentCollection.status !== "not_paid") {
+      throw new MedusaError(
+        MedusaError.Types.NOT_ALLOWED,
+        `Can only mark 'not_paid' payment collection as paid`
+      )
+    }
+  }
+)
+
+const systemPaymentProviderId = "pp_system_default"
+export const markPaymentCollectionAsPaidId = "mark-payment-collection-as-paid"
+/**
+ * This workflow marks a payment collection for an order as paid.
+ */
+export const markPaymentCollectionAsPaid = createWorkflow(
+  markPaymentCollectionAsPaidId,
+  (
+    input: WorkflowData<{
+      payment_collection_id: string
+      order_id: string
+      captured_by?: string
+    }>
+  ) => {
+    const paymentCollection = useRemoteQueryStep({
+      entry_point: "payment_collection",
+      fields: ["id", "status", "amount"],
+      variables: { id: input.payment_collection_id },
+      throw_if_key_not_found: true,
+      list: false,
+    })
+
+    throwUnlessPaymentCollectionNotPaid({ paymentCollection })
+
+    const paymentSession = createPaymentSessionsWorkflow.runAsStep({
+      input: {
+        payment_collection_id: paymentCollection.id,
+        provider_id: systemPaymentProviderId,
+        data: {},
+        context: {},
+      },
+    })
+
+    const payment = authorizePaymentSessionStep({
+      id: paymentSession.id,
+      context: { order_id: input.order_id },
+    })
+
+    capturePaymentWorkflow.runAsStep({
+      input: {
+        payment_id: payment.id,
+        captured_by: input.captured_by,
+        amount: paymentCollection.amount,
+      },
+    })
+
+    return new WorkflowResponse(payment)
+  }
+)
diff --git a/packages/core/js-sdk/src/admin/payment-collection.ts b/packages/core/js-sdk/src/admin/payment-collection.ts
index ca8dacc0cf..12551002a7 100644
--- a/packages/core/js-sdk/src/admin/payment-collection.ts
+++ b/packages/core/js-sdk/src/admin/payment-collection.ts
@@ -60,4 +60,21 @@ export class PaymentCollection {
       }
     )
   }
+
+  async markAsPaid(
+    id: string,
+    body: HttpTypes.AdminMarkPaymentCollectionAsPaid,
+    query?: SelectParams,
+    headers?: ClientHeaders
+  ) {
+    return await this.client.fetch<HttpTypes.AdminPaymentCollectionResponse>(
+      `/admin/payment-collections/${id}/mark-as-paid`,
+      {
+        method: "POST",
+        headers,
+        body,
+        query,
+      }
+    )
+  }
 }
diff --git a/packages/core/types/src/http/payment/admin/payloads.ts b/packages/core/types/src/http/payment/admin/payloads.ts
index 3396965b1a..b407662567 100644
--- a/packages/core/types/src/http/payment/admin/payloads.ts
+++ b/packages/core/types/src/http/payment/admin/payloads.ts
@@ -17,3 +17,7 @@ export interface AdminCreatePaymentCollection {
   order_id: string
   amount?: number
 }
+
+export interface AdminMarkPaymentCollectionAsPaid {
+  order_id: string
+}
diff --git a/packages/medusa/src/api/admin/payment-collections/[id]/mark-as-paid/route.ts b/packages/medusa/src/api/admin/payment-collections/[id]/mark-as-paid/route.ts
new file mode 100644
index 0000000000..46767f49b7
--- /dev/null
+++ b/packages/medusa/src/api/admin/payment-collections/[id]/mark-as-paid/route.ts
@@ -0,0 +1,32 @@
+import { markPaymentCollectionAsPaid } from "@medusajs/core-flows"
+import { HttpTypes } from "@medusajs/types"
+import {
+  AuthenticatedMedusaRequest,
+  MedusaResponse,
+} from "../../../../../types/routing"
+import { refetchEntity } from "../../../../utils/refetch-entity"
+import { AdminMarkPaymentCollectionPaidType } from "../../validators"
+
+export const POST = async (
+  req: AuthenticatedMedusaRequest<AdminMarkPaymentCollectionPaidType>,
+  res: MedusaResponse<HttpTypes.AdminPaymentCollectionResponse>
+) => {
+  const { id } = req.params
+
+  await markPaymentCollectionAsPaid(req.scope).run({
+    input: {
+      ...req.body,
+      payment_collection_id: id,
+      captured_by: req.auth_context.actor_id,
+    },
+  })
+
+  const paymentCollection = await refetchEntity(
+    "payment_collection",
+    id,
+    req.scope,
+    req.remoteQueryConfig.fields
+  )
+
+  res.status(200).json({ payment_collection: paymentCollection })
+}
diff --git a/packages/medusa/src/api/admin/payment-collections/middlewares.ts b/packages/medusa/src/api/admin/payment-collections/middlewares.ts
index 4d8400dad6..9ab5f65199 100644
--- a/packages/medusa/src/api/admin/payment-collections/middlewares.ts
+++ b/packages/medusa/src/api/admin/payment-collections/middlewares.ts
@@ -5,6 +5,7 @@ import * as queryConfig from "./query-config"
 import {
   AdminCreatePaymentCollection,
   AdminGetPaymentCollectionParams,
+  AdminMarkPaymentCollectionPaid,
 } from "./validators"
 
 export const adminPaymentCollectionsMiddlewares: MiddlewareRoute[] = [
@@ -19,6 +20,17 @@ export const adminPaymentCollectionsMiddlewares: MiddlewareRoute[] = [
       ),
     ],
   },
+  {
+    method: ["POST"],
+    matcher: "/admin/payment-collections/:id/mark-as-paid",
+    middlewares: [
+      validateAndTransformBody(AdminMarkPaymentCollectionPaid),
+      validateAndTransformQuery(
+        AdminGetPaymentCollectionParams,
+        queryConfig.retrievePaymentCollectionTransformQueryConfig
+      ),
+    ],
+  },
   {
     method: ["DELETE"],
     matcher: "/admin/payment-collections/:id",
diff --git a/packages/medusa/src/api/admin/payment-collections/query-config.ts b/packages/medusa/src/api/admin/payment-collections/query-config.ts
index 5dc3aa9d48..00372fff77 100644
--- a/packages/medusa/src/api/admin/payment-collections/query-config.ts
+++ b/packages/medusa/src/api/admin/payment-collections/query-config.ts
@@ -3,7 +3,11 @@ export const defaultPaymentCollectionFields = [
   "currency_code",
   "amount",
   "status",
+  "authorized_amount",
+  "captured_amount",
+  "refunded_amount",
   "*payment_sessions",
+  "*payments",
 ]
 
 export const retrievePaymentCollectionTransformQueryConfig = {
diff --git a/packages/medusa/src/api/admin/payment-collections/validators.ts b/packages/medusa/src/api/admin/payment-collections/validators.ts
index d9d6c9913f..e3b424f979 100644
--- a/packages/medusa/src/api/admin/payment-collections/validators.ts
+++ b/packages/medusa/src/api/admin/payment-collections/validators.ts
@@ -15,3 +15,12 @@ export const AdminCreatePaymentCollection = z
     amount: z.number(),
   })
   .strict()
+
+export type AdminMarkPaymentCollectionPaidType = z.infer<
+  typeof AdminMarkPaymentCollectionPaid
+>
+export const AdminMarkPaymentCollectionPaid = z
+  .object({
+    order_id: z.string(),
+  })
+  .strict()