diff --git a/app/models/spree/order.rb b/app/models/spree/order.rb
index 642b57678a..8ad700f3a3 100644
--- a/app/models/spree/order.rb
+++ b/app/models/spree/order.rb
@@ -88,7 +88,7 @@ module Spree
 
     delegate :admin_and_handling_total, :payment_fee, :ship_total, to: :adjustments_fetcher
     delegate :update_totals, :update_totals_and_states, to: :updater
-    delegate :create_line_item_fees!, :create_order_fees!, :update_order_fees!,
+    delegate :create_order_fees!, :update_order_fees!,
              :update_line_item_fees!, :recreate_all_fees!, to: :fee_handler
 
     validates :customer, presence: true, if: :require_customer?
diff --git a/app/services/orders/handle_fees_service.rb b/app/services/orders/handle_fees_service.rb
index 09ee04f1a2..16d0ffd0d1 100644
--- a/app/services/orders/handle_fees_service.rb
+++ b/app/services/orders/handle_fees_service.rb
@@ -16,9 +16,9 @@ module Orders
       # See https://github.com/rails/rails/blob/3-2-stable/activerecord/lib/active_record/locking/pessimistic.rb#L69
       # and https://www.postgresql.org/docs/current/static/sql-select.html#SQL-FOR-UPDATE-SHARE
       order.with_lock do
-        EnterpriseFee.clear_all_adjustments order
+        EnterpriseFee.clear_order_adjustments order
 
-        create_line_item_fees!
+        create_or_update_line_item_fees!
         create_order_fees!
       end
 
@@ -26,11 +26,17 @@ module Orders
       order.update_order!
     end
 
-    def create_line_item_fees!
-      order.line_items.includes(variant: :product).each do |line_item|
-        if provided_by_order_cycle? line_item
-          calculator.create_line_item_adjustments_for line_item
+    def create_or_update_line_item_fees!
+      order.line_items.includes(:variant).each do |line_item|
+        # No fee associated with the line item so we just create them
+        if line_item.enterprise_fee_adjustments.blank?
+          create_line_item_fees!(line_item)
+          next
         end
+        create_or_update_line_item_fee!(line_item)
+
+        # delete any fees removed from the Order Cycle
+        delete_removed_fees!(line_item)
       end
     end
 
@@ -58,6 +64,57 @@ module Orders
 
     private
 
+    def create_line_item_fees!(line_item)
+      return unless provided_by_order_cycle? line_item
+
+      calculator.create_line_item_adjustments_for(line_item)
+    end
+
+    def create_or_update_line_item_fee!(line_item)
+      applicators = calculator.per_item_enterprise_fee_applicators_for(line_item.variant)
+
+      applicators.each do |fee_applicator|
+        fee_adjustment = line_item.adjustments.find_by(originator: fee_applicator.enterprise_fee)
+
+        if fee_adjustment
+          fee_adjustment.update_adjustment!(line_item, force: true)
+        elsif provided_by_order_cycle? line_item
+          fee_applicator.create_line_item_adjustment(line_item)
+        end
+      end
+
+      # Update any fees not already processed
+      fees_to_update =
+        order_cycle_per_item_enterprise_fee_for - applicators.map(&:enterprise_fee)
+      fees_to_update.each do |fee|
+        fee_adjustment = line_item.adjustments.find_by(originator: fee)
+
+        fee_adjustment&.update_adjustment!(line_item, force: true)
+      end
+    end
+
+    def delete_removed_fees!(line_item)
+      order_cycle_fees = order_cycle_per_item_enterprise_fee_for
+
+      removed_fees = line_item.enterprise_fee_adjustments.where.not(originator: order_cycle_fees)
+
+      removed_fees.each(&:destroy)
+    end
+
+    def order_cycle_per_item_enterprise_fee_for
+      fees = []
+
+      return fees unless order_cycle && distributor
+
+      order_cycle.exchanges.supplying_to(distributor).each do |exchange|
+        fees += exchange.enterprise_fees.per_item
+      end
+
+      fees += order_cycle.coordinator_fees.per_item
+
+      fees
+    end
+
     def calculator
       @calculator ||= OpenFoodNetwork::EnterpriseFeeCalculator.new(distributor, order_cycle)
     end
diff --git a/spec/services/orders/handle_fees_service_spec.rb b/spec/services/orders/handle_fees_service_spec.rb
index f31ce21ce2..7018c662c7 100644
--- a/spec/services/orders/handle_fees_service_spec.rb
+++ b/spec/services/orders/handle_fees_service_spec.rb
@@ -4,24 +4,173 @@ require 'spec_helper'
 
 RSpec.describe Orders::HandleFeesService do
   let(:order_cycle) { create(:order_cycle) }
-  let(:order) { create(:order_with_line_items, line_items_count: 1, order_cycle:) }
+  let(:order) {
+    create(:order_with_line_items, line_items_count: 1, order_cycle:,
+                                   distributor: order_cycle.distributors.first)
+  }
   let(:line_item) { order.line_items.first }
 
   let(:service) { Orders::HandleFeesService.new(order) }
   let(:calculator) {
-    double(OpenFoodNetwork::EnterpriseFeeCalculator, create_order_adjustments_for: true)
+    instance_double(OpenFoodNetwork::EnterpriseFeeCalculator, create_order_adjustments_for: true)
   }
 
   before do
     allow(service).to receive(:calculator) { calculator }
   end
 
-  describe "#create_line_item_fees!" do
-    it "creates per-line-item fee adjustments for line items in the order cycle" do
-      allow(service).to receive(:provided_by_order_cycle?) { true }
-      expect(calculator).to receive(:create_line_item_adjustments_for).with(line_item)
+  describe "#create_or_update_line_item_fees!" do
+    context "with no existing fee" do
+      it "creates per line item fee adjustments for line items in the order cylce" do
+        allow(service).to receive(:provided_by_order_cycle?) { true }
+        expect(calculator).to receive(:create_line_item_adjustments_for).with(line_item)
 
-      service.create_line_item_fees!
+        service.create_or_update_line_item_fees!
+      end
+
+      it "does not create fee if variant not in Order Cyle" do
+        allow(service).to receive(:provided_by_order_cycle?) { false }
+        expect(calculator).not_to receive(:create_line_item_adjustments_for).with(line_item)
+
+        service.create_or_update_line_item_fees!
+      end
+    end
+
+    context "with existing line item fee" do
+      let(:fee) { order_cycle.exchanges.first.enterprise_fees.first }
+      let(:role) { order_cycle.exchanges.first.role }
+      let(:fee_applicator) {
+        OpenFoodNetwork::EnterpriseFeeApplicator.new(fee, line_item.variant, role)
+      }
+
+      it "updates the line item fee" do
+        allow(calculator).to receive(
+          :per_item_enterprise_fee_applicators_for
+        ).and_return([fee_applicator])
+        adjustment = fee.create_adjustment('foo', line_item, true)
+
+        expect do
+          service.create_or_update_line_item_fees!
+        end.to change { adjustment.reload.updated_at }
+      end
+
+      context "when the variant has been removed from the order cycle" do
+        it "updates the line item fee" do
+          allow(calculator).to receive(
+            :per_item_enterprise_fee_applicators_for
+          ).and_return([])
+          adjustment = fee.create_adjustment('foo', line_item, true)
+
+          expect do
+            service.create_or_update_line_item_fees!
+          end.to change { adjustment.reload.updated_at }
+        end
+      end
+
+      context "when enterprise fee is removed from the order cycle" do
+        it "removes the line item fee" do
+          adjustment = fee.create_adjustment('foo', line_item, true)
+          order_cycle.exchanges.first.enterprise_fees.destroy(fee)
+          allow(calculator).to receive(
+            :per_item_enterprise_fee_applicators_for
+          ).and_return([])
+
+          expect do
+            service.create_or_update_line_item_fees!
+          end.to change { line_item.adjustments.reload.enterprise_fee.count }.by(-1)
+        end
+
+        context "with coordinator fee" do
+          it "removes the coordinator fee" do
+            coordinator_fee = order_cycle.coordinator_fees.per_item.first
+            adjustment = coordinator_fee.create_adjustment('foo', line_item, true)
+            order_cycle.coordinator_fees.destroy(coordinator_fee)
+            allow(calculator).to receive(
+              :per_item_enterprise_fee_applicators_for
+            ).and_return([])
+
+            expect do
+              service.create_or_update_line_item_fees!
+            end.to change { line_item.adjustments.reload.enterprise_fee.count }.by(-1)
+          end
+        end
+      end
+
+      context "when an enterprise fee is deleted" do
+        before do
+          fee.create_adjustment('foo', line_item, true)
+          allow(calculator).to receive(
+            :per_item_enterprise_fee_applicators_for
+          ).and_return([])
+        end
+
+        context "soft delete" do
+          it "deletes the line item fee" do
+            fee.destroy
+
+            expect do
+              service.create_or_update_line_item_fees!
+            end.to change { line_item.adjustments.enterprise_fee.count }.by(-1)
+          end
+        end
+
+        context "hard delete" do
+          it "deletes the line item fee" do
+            fee.really_destroy!
+
+            expect do
+              service.create_or_update_line_item_fees!
+            end.to change { line_item.adjustments.enterprise_fee.count }.by(-1)
+          end
+        end
+      end
+
+      context "with a new enterprise fee added to the order cylce" do
+        let(:new_fee) { create(:enterprise_fee, enterprise: fee.enterprise) }
+        let(:fee_applicator2) {
+          OpenFoodNetwork::EnterpriseFeeApplicator.new(new_fee, line_item.variant, role)
+        }
+        let!(:adjustment) { fee.create_adjustment('foo', line_item, true) }
+
+        before do
+          allow(service).to receive(:provided_by_order_cycle?) { true }
+          # add the new fee to the order cycle
+          order_cycle.cached_outgoing_exchanges.first.enterprise_fees << new_fee
+        end
+
+        it "creates a line item fee for the new fee" do
+          allow(calculator).to receive(
+            :per_item_enterprise_fee_applicators_for
+          ).and_return([fee_applicator, fee_applicator2])
+
+          expect(fee_applicator2).to receive(:create_line_item_adjustment).with(line_item)
+
+          service.create_or_update_line_item_fees!
+        end
+
+        it "updates existing line item fee" do
+          allow(calculator).to receive(
+            :per_item_enterprise_fee_applicators_for
+          ).and_return([fee_applicator, fee_applicator2])
+
+          expect do
+            service.create_or_update_line_item_fees!
+          end.to change { adjustment.reload.updated_at }
+        end
+
+        context "with variant not included in the order cycle" do
+          it "doesn't create a new line item fee" do
+            allow(service).to receive(:provided_by_order_cycle?) { false }
+            allow(calculator).to receive(
+              :per_item_enterprise_fee_applicators_for
+            ).and_return([])
+
+            expect(fee_applicator2).not_to receive(:create_line_item_adjustment).with(line_item)
+
+            service.create_or_update_line_item_fees!
+          end
+        end
+      end
     end
   end