diff --git a/app/models/proxy_order.rb b/app/models/proxy_order.rb
index 63f7bc769d..b5b80c0c4c 100644
--- a/app/models/proxy_order.rb
+++ b/app/models/proxy_order.rb
@@ -42,21 +42,8 @@ class ProxyOrder < ActiveRecord::Base
 
   def initialise_order!
     return order if order.present?
-    create_order!(
-      customer_id: subscription.customer_id,
-      email: subscription.customer.email,
-      order_cycle_id: order_cycle_id,
-      distributor_id: subscription.shop_id,
-      shipping_method_id: subscription.shipping_method_id
-    )
-    order.update_attribute(:user, subscription.customer.user)
-    subscription.subscription_line_items.each do |sli|
-      order.line_items.build(variant_id: sli.variant_id, quantity: sli.quantity, skip_stock_check: true)
-    end
-    order.update_attributes(bill_address: subscription.bill_address.dup, ship_address: subscription.ship_address.dup)
-    order.update_distribution_charge!
-    order.payments.create(payment_method_id: subscription.payment_method_id, amount: order.reload.total)
-
+    factory = OrderFactory.new(order_attrs, skip_stock_check: true)
+    self.order = factory.create
     save!
     order
   end
@@ -75,4 +62,16 @@ class ProxyOrder < ActiveRecord::Base
     order.andand.state == 'complete' &&
       order_cycle.orders_close_at > Time.zone.now
   end
+
+  def order_attrs
+    attrs = subscription.attributes.slice("customer_id", "payment_method_id", "shipping_method_id")
+    attrs[:distributor_id] = subscription.shop_id
+    attrs[:order_cycle_id] = order_cycle_id
+    attrs[:bill_address_attributes] = subscription.bill_address.attributes.except("id")
+    attrs[:ship_address_attributes] = subscription.ship_address.attributes.except("id")
+    attrs[:line_items] = subscription.subscription_line_items.map do |sli|
+      { variant_id: sli.variant_id, quantity: sli.quantity }
+    end
+    attrs
+  end
 end
diff --git a/app/services/order_factory.rb b/app/services/order_factory.rb
new file mode 100644
index 0000000000..df5ce3e50d
--- /dev/null
+++ b/app/services/order_factory.rb
@@ -0,0 +1,71 @@
+# Builds orders based on a set of attributes
+# There are some idiosyncracies in the order creation process,
+# and it is nice to have them dealt with in one place.
+
+class OrderFactory
+  def initialize(attrs, opts = {})
+    @attrs = attrs.with_indifferent_access
+    @opts = opts.with_indifferent_access
+  end
+
+  def create
+    create_order
+    set_user
+    build_line_items
+    set_addresses
+    create_payment
+    @order
+  end
+
+  private
+
+  attr_reader :attrs, :opts
+
+  def customer
+    @customer ||= Customer.find(attrs[:customer_id])
+  end
+
+  def create_order
+    @order = Spree::Order.create!(create_attrs)
+  end
+
+  def create_attrs
+    create_attrs = attrs.slice(:customer_id, :order_cycle_id, :distributor_id, :shipping_method_id)
+    create_attrs[:email] = customer.email
+    create_attrs
+  end
+
+  def build_line_items
+    attrs[:line_items].each do |li|
+      next unless variant = Spree::Variant.find_by_id(li[:variant_id])
+      li[:quantity] = stock_limited_quantity(variant.on_hand, li[:quantity])
+      build_item_from(li)
+    end
+  end
+
+  def build_item_from(attrs)
+    @order.line_items.build(
+      variant_id: attrs[:variant_id],
+      quantity: attrs[:quantity],
+      skip_stock_check: opts[:skip_stock_check]
+    )
+  end
+
+  def set_user
+    @order.update_attribute(:user_id, customer.user_id)
+  end
+
+  def set_addresses
+    @order.update_attributes(attrs.slice(:bill_address_attributes, :ship_address_attributes))
+  end
+
+  def create_payment
+    @order.update_distribution_charge!
+    @order.payments.create(payment_method_id: attrs[:payment_method_id], amount: @order.reload.total)
+  end
+
+  def stock_limited_quantity(stock, requested)
+    return requested if opts[:skip_stock_check]
+    [stock, requested].min
+  end
+end
diff --git a/spec/models/proxy_order_spec.rb b/spec/models/proxy_order_spec.rb
index c85733d5d3..67d4af87f2 100644
--- a/spec/models/proxy_order_spec.rb
+++ b/spec/models/proxy_order_spec.rb
@@ -158,66 +158,29 @@ describe ProxyOrder, type: :model do
   end
 
   describe "initialise_order!" do
+    let(:order) { create(:order) }
+    let(:factory) { instance_double(OrderFactory) }
+    let!(:proxy_order) { create(:proxy_order) }
+
     context "when the order has not already been initialised" do
-      let(:subscription) { create(:subscription, with_items: true) }
-      let!(:proxy_order) { create(:proxy_order, subscription: subscription) }
-
-      it "builds a new order based the subscription" do
-        expect{ proxy_order.initialise_order! }.to change{ Spree::Order.count }.by(1)
-        expect(proxy_order.reload.order).to be_a Spree::Order
-        order = proxy_order.order
-        expect(order.line_items.count).to eq subscription.subscription_line_items.count
-        expect(order.customer).to eq subscription.customer
-        expect(order.user).to eq subscription.customer.user
-        expect(order.distributor).to eq subscription.shop
-        expect(order.order_cycle).to eq proxy_order.order_cycle
-        expect(order.shipping_method).to eq subscription.shipping_method
-        expect(order.shipments.first.shipping_method).to eq subscription.shipping_method
-        expect(order.payments.first.payment_method).to eq subscription.payment_method
-        expect(order.bill_address).to eq subscription.bill_address
-        expect(order.ship_address).to eq subscription.ship_address
-        expect(order.complete?).to be false
-      end
-
-      context "when a requested quantity is greater than available stock" do
-        let(:sli) { subscription.subscription_line_items.first }
-        let(:variant) { sli.variant }
-
-        before do
-          variant.update_attribute(:count_on_hand, 2)
-          sli.update_attribute(:quantity, 5)
-        end
-
-        it "initialises the order with the requested quantity regardless" do
-          expect{ proxy_order.initialise_order! }.to change{ Spree::Order.count }.by(1)
-          expect(proxy_order.reload.order).to be_a Spree::Order
-          order = proxy_order.order
-          expect(order.line_items.find_by_variant_id(variant.id).quantity).to eq 5
-        end
-      end
-
-      context "when the customer does not have a user associated with it" do
-        before do
-          subscription.customer.update_attribute(:user_id, nil)
-        end
-
-        it "initialises the order without a user_id" do
-          expect{ proxy_order.initialise_order! }.to change{ Spree::Order.count }.by(1)
-          expect(proxy_order.reload.order).to be_a Spree::Order
-          order = proxy_order.order
-          expect(order.user).to be nil
-        end
+      it "creates a new order using the OrderFactory, and returns it" do
+        expect(OrderFactory).to receive(:new) { factory }
+        expect(factory).to receive(:create) { order }
+        expect(proxy_order.initialise_order!).to eq order
       end
     end
 
     context "when the order has already been initialised" do
       let(:existing_order) { create(:order) }
-      let!(:proxy_order) { create(:proxy_order, order: existing_order) }
+
+      before do
+        proxy_order.update_attributes(order: existing_order)
+      end
 
       it "returns the existing order" do
-        expect do
-          expect(proxy_order.initialise_order!).to eq existing_order
-        end.to_not change{ Spree::Order.count }
+        expect(OrderFactory).to_not receive(:new)
+        expect(proxy_order).to_not receive(:save!)
+        expect(proxy_order.initialise_order!).to eq existing_order
       end
     end
   end
diff --git a/spec/services/order_factory_spec.rb b/spec/services/order_factory_spec.rb
new file mode 100644
index 0000000000..c8758c9f0c
--- /dev/null
+++ b/spec/services/order_factory_spec.rb
@@ -0,0 +1,81 @@
+describe OrderFactory do
+  let(:variant1) { create(:variant) }
+  let(:variant2) { create(:variant) }
+  let(:user) { create(:user) }
+  let(:customer) { create(:customer, user: user) }
+  let(:shop) { create(:distributor_enterprise) }
+  let(:order_cycle) { create(:simple_order_cycle) }
+  let(:shipping_method) { create(:shipping_method) }
+  let(:payment_method) { create(:payment_method) }
+  let(:ship_address) { create(:address) }
+  let(:bill_address) { create(:address) }
+  let(:opts) { {} }
+  let(:factory) { OrderFactory.new(attrs, opts) }
+  let(:order) { factory.create }
+
+  describe "create" do
+    let(:attrs) do
+      attrs = {}
+      attrs[:line_items] = [{ variant_id: variant1.id, quantity: 2 }, { variant_id: variant2.id, quantity: 4 }]
+      attrs[:customer_id] = customer.id
+      attrs[:distributor_id] = shop.id
+      attrs[:order_cycle_id] = order_cycle.id
+      attrs[:shipping_method_id] = shipping_method.id
+      attrs[:payment_method_id] = payment_method.id
+      attrs[:bill_address_attributes] = bill_address.attributes.except("id")
+      attrs[:ship_address_attributes] = ship_address.attributes.except("id")
+      attrs
+    end
+
+    it "builds a new order based the provided attributes" do
+      expect{ order }.to change{ Spree::Order.count }.by(1)
+      expect(order).to be_a Spree::Order
+      expect(order.line_items.count).to eq 2
+      expect(order.customer).to eq customer
+      expect(order.user).to eq user
+      expect(order.distributor).to eq shop
+      expect(order.order_cycle).to eq order_cycle
+      expect(order.shipping_method).to eq shipping_method
+      expect(order.shipments.reload.first.shipping_method).to eq shipping_method
+      expect(order.payments.first.payment_method).to eq payment_method
+      expect(order.bill_address).to eq bill_address
+      expect(order.ship_address).to eq ship_address
+      expect(order.complete?).to be false
+    end
+
+    context "when the customer does not have a user associated with it" do
+      before { customer.update_attribute(:user_id, nil) }
+
+      it "initialises the order without a user_id" do
+        expect{ order }.to change{ Spree::Order.count }.by(1)
+        expect(order).to be_a Spree::Order
+        expect(order.user).to be nil
+      end
+    end
+
+    context "when requested quantity is greater than available stock" do
+      before do
+        variant1.update_attribute(:count_on_hand, 2)
+        attrs[:line_items].first[:quantity] = 5
+      end
+
+      context "when skip_stock_check is not requested" do
+        it "initialised the order but limits stock to the available amount" do
+          expect{ order }.to change{ Spree::Order.count }.by(1)
+          expect(order).to be_a Spree::Order
+          expect(order.line_items.find_by_variant_id(variant1.id).quantity).to eq 2
+        end
+      end
+
+      context "when skip_stock_check is requested" do
+        let(:opts) { { skip_stock_check: true } }
+
+        it "initialises the order with the requested quantity regardless" do
+          expect{ order }.to change{ Spree::Order.count }.by(1)
+          expect(order).to be_a Spree::Order
+          expect(order.line_items.find_by_variant_id(variant1.id).quantity).to eq 5
+        end
+      end
+    end
+  end
+end