diff --git a/invoices/invoiceregistry.go b/invoices/invoiceregistry.go
index 3a57eaf8..62998b74 100644
--- a/invoices/invoiceregistry.go
+++ b/invoices/invoiceregistry.go
@@ -977,154 +977,3 @@ func (i *InvoiceRegistry) HodlUnsubscribeAll(subscriber chan<- interface{}) {
 
 	delete(i.hodlReverseSubscriptions, subscriber)
 }
-
-// updateResult is the result of the invoice update call.
-type updateResult uint8
-
-const (
-	resultInvalid updateResult = iota
-	resultReplayToCanceled
-	resultReplayToAccepted
-	resultReplayToSettled
-	resultInvoiceAlreadyCanceled
-	resultAmountTooLow
-	resultExpiryTooSoon
-	resultDuplicateToAccepted
-	resultDuplicateToSettled
-	resultAccepted
-	resultSettled
-)
-
-// String returns a human-readable representation of the invoice update result.
-func (u updateResult) String() string {
-	switch u {
-
-	case resultInvalid:
-		return "invalid"
-
-	case resultReplayToCanceled:
-		return "replayed htlc to canceled invoice"
-
-	case resultReplayToAccepted:
-		return "replayed htlc to accepted invoice"
-
-	case resultReplayToSettled:
-		return "replayed htlc to settled invoice"
-
-	case resultInvoiceAlreadyCanceled:
-		return "invoice already canceled"
-
-	case resultAmountTooLow:
-		return "amount too low"
-
-	case resultExpiryTooSoon:
-		return "expiry too soon"
-
-	case resultDuplicateToAccepted:
-		return "accepting duplicate payment to accepted invoice"
-
-	case resultDuplicateToSettled:
-		return "accepting duplicate payment to settled invoice"
-
-	case resultAccepted:
-		return "accepted"
-
-	case resultSettled:
-		return "settled"
-
-	default:
-		return "unknown"
-	}
-}
-
-// invoiceUpdateCtx is an object that describes the context for the invoice
-// update to be carried out.
-type invoiceUpdateCtx struct {
-	circuitKey           channeldb.CircuitKey
-	amtPaid              lnwire.MilliSatoshi
-	expiry               uint32
-	currentHeight        int32
-	finalCltvRejectDelta int32
-}
-
-// updateInvoice is a callback for DB.UpdateInvoice that contains the invoice
-// settlement logic.
-func updateInvoice(ctx *invoiceUpdateCtx, inv *channeldb.Invoice) (
-	*channeldb.InvoiceUpdateDesc, updateResult, error) {
-
-	// Don't update the invoice when this is a replayed htlc.
-	htlc, ok := inv.Htlcs[ctx.circuitKey]
-	if ok {
-		switch htlc.State {
-		case channeldb.HtlcStateCanceled:
-			return nil, resultReplayToCanceled, nil
-
-		case channeldb.HtlcStateAccepted:
-			return nil, resultReplayToAccepted, nil
-
-		case channeldb.HtlcStateSettled:
-			return nil, resultReplayToSettled, nil
-
-		default:
-			return nil, 0, errors.New("unknown htlc state")
-		}
-	}
-
-	// If the invoice is already canceled, there is no further checking to
-	// do.
-	if inv.State == channeldb.ContractCanceled {
-		return nil, resultInvoiceAlreadyCanceled, nil
-	}
-
-	// If an invoice amount is specified, check that enough is paid. Also
-	// check this for duplicate payments if the invoice is already settled
-	// or accepted.
-	if inv.Terms.Value > 0 && ctx.amtPaid < inv.Terms.Value {
-		return nil, resultAmountTooLow, nil
-	}
-
-	// The invoice is still open. Check the expiry.
-	if ctx.expiry < uint32(ctx.currentHeight+ctx.finalCltvRejectDelta) {
-		return nil, resultExpiryTooSoon, nil
-	}
-
-	if ctx.expiry < uint32(ctx.currentHeight+inv.Terms.FinalCltvDelta) {
-		return nil, resultExpiryTooSoon, nil
-	}
-
-	// Record HTLC in the invoice database.
-	newHtlcs := map[channeldb.CircuitKey]*channeldb.HtlcAcceptDesc{
-		ctx.circuitKey: {
-			Amt:          ctx.amtPaid,
-			Expiry:       ctx.expiry,
-			AcceptHeight: ctx.currentHeight,
-		},
-	}
-
-	update := channeldb.InvoiceUpdateDesc{Htlcs: newHtlcs}
-
-	// Don't update invoice state if we are accepting a duplicate payment.
-	// We do accept or settle the HTLC.
-	switch inv.State {
-	case channeldb.ContractAccepted:
-		update.State = channeldb.ContractAccepted
-		return &update, resultDuplicateToAccepted, nil
-
-	case channeldb.ContractSettled:
-		update.State = channeldb.ContractSettled
-		return &update, resultDuplicateToSettled, nil
-	}
-
-	// Check to see if we can settle or this is an hold invoice and we need
-	// to wait for the preimage.
-	holdInvoice := inv.Terms.PaymentPreimage == channeldb.UnknownPreimage
-	if holdInvoice {
-		update.State = channeldb.ContractAccepted
-		return &update, resultAccepted, nil
-	}
-
-	update.Preimage = inv.Terms.PaymentPreimage
-	update.State = channeldb.ContractSettled
-
-	return &update, resultSettled, nil
-}
diff --git a/invoices/update.go b/invoices/update.go
new file mode 100644
index 00000000..1b015ecf
--- /dev/null
+++ b/invoices/update.go
@@ -0,0 +1,159 @@
+package invoices
+
+import (
+	"errors"
+
+	"github.com/lightningnetwork/lnd/channeldb"
+	"github.com/lightningnetwork/lnd/lnwire"
+)
+
+// updateResult is the result of the invoice update call.
+type updateResult uint8
+
+const (
+	resultInvalid updateResult = iota
+	resultReplayToCanceled
+	resultReplayToAccepted
+	resultReplayToSettled
+	resultInvoiceAlreadyCanceled
+	resultAmountTooLow
+	resultExpiryTooSoon
+	resultDuplicateToAccepted
+	resultDuplicateToSettled
+	resultAccepted
+	resultSettled
+)
+
+// String returns a human-readable representation of the invoice update result.
+func (u updateResult) String() string {
+	switch u {
+
+	case resultInvalid:
+		return "invalid"
+
+	case resultReplayToCanceled:
+		return "replayed htlc to canceled invoice"
+
+	case resultReplayToAccepted:
+		return "replayed htlc to accepted invoice"
+
+	case resultReplayToSettled:
+		return "replayed htlc to settled invoice"
+
+	case resultInvoiceAlreadyCanceled:
+		return "invoice already canceled"
+
+	case resultAmountTooLow:
+		return "amount too low"
+
+	case resultExpiryTooSoon:
+		return "expiry too soon"
+
+	case resultDuplicateToAccepted:
+		return "accepting duplicate payment to accepted invoice"
+
+	case resultDuplicateToSettled:
+		return "accepting duplicate payment to settled invoice"
+
+	case resultAccepted:
+		return "accepted"
+
+	case resultSettled:
+		return "settled"
+
+	default:
+		return "unknown"
+	}
+}
+
+// invoiceUpdateCtx is an object that describes the context for the invoice
+// update to be carried out.
+type invoiceUpdateCtx struct {
+	circuitKey           channeldb.CircuitKey
+	amtPaid              lnwire.MilliSatoshi
+	expiry               uint32
+	currentHeight        int32
+	finalCltvRejectDelta int32
+}
+
+// updateInvoice is a callback for DB.UpdateInvoice that contains the invoice
+// settlement logic.
+func updateInvoice(ctx *invoiceUpdateCtx, inv *channeldb.Invoice) (
+	*channeldb.InvoiceUpdateDesc, updateResult, error) {
+
+	// Don't update the invoice when this is a replayed htlc.
+	htlc, ok := inv.Htlcs[ctx.circuitKey]
+	if ok {
+		switch htlc.State {
+		case channeldb.HtlcStateCanceled:
+			return nil, resultReplayToCanceled, nil
+
+		case channeldb.HtlcStateAccepted:
+			return nil, resultReplayToAccepted, nil
+
+		case channeldb.HtlcStateSettled:
+			return nil, resultReplayToSettled, nil
+
+		default:
+			return nil, 0, errors.New("unknown htlc state")
+		}
+	}
+
+	// If the invoice is already canceled, there is no further checking to
+	// do.
+	if inv.State == channeldb.ContractCanceled {
+		return nil, resultInvoiceAlreadyCanceled, nil
+	}
+
+	// If an invoice amount is specified, check that enough is paid. Also
+	// check this for duplicate payments if the invoice is already settled
+	// or accepted.
+	if inv.Terms.Value > 0 && ctx.amtPaid < inv.Terms.Value {
+		return nil, resultAmountTooLow, nil
+	}
+
+	// The invoice is still open. Check the expiry.
+	if ctx.expiry < uint32(ctx.currentHeight+ctx.finalCltvRejectDelta) {
+		return nil, resultExpiryTooSoon, nil
+	}
+
+	if ctx.expiry < uint32(ctx.currentHeight+inv.Terms.FinalCltvDelta) {
+		return nil, resultExpiryTooSoon, nil
+	}
+
+	// Record HTLC in the invoice database.
+	newHtlcs := map[channeldb.CircuitKey]*channeldb.HtlcAcceptDesc{
+		ctx.circuitKey: {
+			Amt:          ctx.amtPaid,
+			Expiry:       ctx.expiry,
+			AcceptHeight: ctx.currentHeight,
+		},
+	}
+
+	update := channeldb.InvoiceUpdateDesc{Htlcs: newHtlcs}
+
+	// Don't update invoice state if we are accepting a duplicate payment.
+	// We do accept or settle the HTLC.
+	switch inv.State {
+	case channeldb.ContractAccepted:
+		update.State = channeldb.ContractAccepted
+		return &update, resultDuplicateToAccepted, nil
+
+	case channeldb.ContractSettled:
+		update.State = channeldb.ContractSettled
+		return &update, resultDuplicateToSettled, nil
+	}
+
+	// Check to see if we can settle or this is an hold invoice and we need
+	// to wait for the preimage.
+	holdInvoice := inv.Terms.PaymentPreimage == channeldb.UnknownPreimage
+	if holdInvoice {
+		update.State = channeldb.ContractAccepted
+		return &update, resultAccepted, nil
+	}
+
+	update.Preimage = inv.Terms.PaymentPreimage
+	update.State = channeldb.ContractSettled
+
+	return &update, resultSettled, nil
+}