diff --git a/apps/hellgate/src/hg_invoice_payment.erl b/apps/hellgate/src/hg_invoice_payment.erl
index c7fdc69..dafbc17 100644
--- a/apps/hellgate/src/hg_invoice_payment.erl
+++ b/apps/hellgate/src/hg_invoice_payment.erl
@@ -1463,7 +1463,7 @@ create_adjustment(Timestamp, Params, St, Opts) ->
 create_cash_flow_adjustment(Timestamp, Params, DomainRevision, St, Opts) ->
     Payment = get_payment(St),
     Route = get_route(St),
-    _ = assert_payment_status([captured, refunded, charged_back], Payment),
+    _ = assert_payment_status([captured, refunded, charged_back, failed], Payment),
     NewRevision = maybe_get_domain_revision(DomainRevision),
     PartyRevision = get_opts_party_revision(Opts),
     OldCashFlow = get_final_cashflow(St),
diff --git a/apps/hellgate/test/hg_invoice_tests_SUITE.erl b/apps/hellgate/test/hg_invoice_tests_SUITE.erl
index 362175a..cd380cf 100644
--- a/apps/hellgate/test/hg_invoice_tests_SUITE.erl
+++ b/apps/hellgate/test/hg_invoice_tests_SUITE.erl
@@ -2384,7 +2384,8 @@ invalid_payment_adjustment(C) ->
     _UserInteraction = await_payment_process_interaction(InvoiceID, PaymentID, Client),
     PaymentID = await_payment_process_timeout(InvoiceID, PaymentID, Client),
     %% no way to create adjustment for a failed payment
-    ?invalid_payment_status(?failed(_)) =
+    %% Correction. It was changed to failed payment not being in the way of adjustment
+    ?adjustment(_AdjustmentID, ?adjustment_pending()) =
         hg_client_invoicing:create_payment_adjustment(InvoiceID, PaymentID, make_adjustment_params(), Client).
 
 -spec payment_adjustment_success(config()) -> test_return().