diff --git a/app/controllers/admin/enterprise_fees_controller.rb b/app/controllers/admin/enterprise_fees_controller.rb
index 41450c82c9..2aa2a3aa30 100644
--- a/app/controllers/admin/enterprise_fees_controller.rb
+++ b/app/controllers/admin/enterprise_fees_controller.rb
@@ -28,11 +28,14 @@ module Admin
       product_distribution = ProductDistribution.where(:enterprise_fee_id => @object).first
       if product_distribution
         p = product_distribution.product
-        flash[:error] = "That enterprise fee cannot be deleted as it is referenced by a product distribution: #{p.id} - #{p.name}."
+        error = "That enterprise fee cannot be deleted as it is referenced by a product distribution: #{p.id} - #{p.name}."
 
         respond_with(@object) do |format|
-          format.html { redirect_to collection_url }
-          format.js   { render text: flash[:error], status: 403 }
+          format.html do
+            flash[:error] = error
+            redirect_to collection_url
+          end
+          format.js { render text: error, status: 403 }
         end
       end
     end
diff --git a/app/controllers/spree/admin/shipping_methods_controller_decorator.rb b/app/controllers/spree/admin/shipping_methods_controller_decorator.rb
index 9077c7a41e..035f83e408 100644
--- a/app/controllers/spree/admin/shipping_methods_controller_decorator.rb
+++ b/app/controllers/spree/admin/shipping_methods_controller_decorator.rb
@@ -3,19 +3,18 @@ module Spree
     ShippingMethodsController.class_eval do
       before_filter :do_not_destroy_referenced_shipping_methods, :only => :destroy
 
+      # This method was originally written because ProductDistributions referenced shipping
+      # methods, and deleting a referenced shipping method would break all the reports that
+      # queried it.
+      # This has changed, and now all we're protecting is Orders, which is a spree resource.
+      # Do we really need to protect it ourselves? Does spree do this, or provide some means
+      # of preserving the shipping method information for past orders?
       def do_not_destroy_referenced_shipping_methods
         order = Order.where(:shipping_method_id => @object).first
         if order
           flash[:error] = "That shipping method cannot be deleted as it is referenced by an order: #{order.number}."
           redirect_to collection_url and return
         end
-
-        product_distribution = ProductDistribution.where(:shipping_method_id => @object).first
-        if product_distribution
-          p = product_distribution.product
-          flash[:error] = "That shipping method cannot be deleted as it is referenced by a product distribution: #{p.id} - #{p.name}."
-          redirect_to collection_url and return
-        end
       end
     end
   end
diff --git a/app/helpers/spree/orders_helper.rb b/app/helpers/spree/orders_helper.rb
index 745d95cf02..d8430f723f 100644
--- a/app/helpers/spree/orders_helper.rb
+++ b/app/helpers/spree/orders_helper.rb
@@ -5,9 +5,9 @@ module Spree
       order.nil? || order.line_items.empty?
     end
 
-    def order_delivery_fee_subtotal(order, options={})
+    def order_distribution_subtotal(order, options={})
       options.reverse_merge! :format_as_currency => true
-      amount = OpenFoodWeb::Calculator::Itemwise.new.compute(order)
+      amount = order.adjustments.enterprise_fee.sum &:amount
       options.delete(:format_as_currency) ? number_to_currency(amount) : amount
     end
 
diff --git a/app/models/enterprise.rb b/app/models/enterprise.rb
index b325257bc6..4379788dfc 100644
--- a/app/models/enterprise.rb
+++ b/app/models/enterprise.rb
@@ -8,6 +8,7 @@ class Enterprise < ActiveRecord::Base
   belongs_to :address, :class_name => 'Spree::Address'
   has_many :product_distributions, :foreign_key => 'distributor_id', :dependent => :destroy
   has_many :distributed_products, :through => :product_distributions, :source => :product
+  has_many :enterprise_fees
   has_many :enterprise_roles
   has_many :users, through: :enterprise_roles
 
diff --git a/app/models/open_food_web/calculator/itemwise.rb b/app/models/open_food_web/calculator/itemwise.rb
deleted file mode 100644
index 76f54cc62c..0000000000
--- a/app/models/open_food_web/calculator/itemwise.rb
+++ /dev/null
@@ -1,13 +0,0 @@
-module OpenFoodWeb
-  class Calculator::Itemwise < Spree::Calculator
-
-    def self.description
-      "Itemwise Shipping"
-    end
-
-    def compute(object)
-      # Given an order, sum the shipping on each individual item
-      object.line_items.sum { |li| li.distribution_fee } || 0
-    end
-  end
-end
diff --git a/app/models/product_distribution.rb b/app/models/product_distribution.rb
index 44ce0d494b..fbad4e6dd9 100644
--- a/app/models/product_distribution.rb
+++ b/app/models/product_distribution.rb
@@ -1,7 +1,6 @@
 class ProductDistribution < ActiveRecord::Base
   belongs_to :product, :class_name => 'Spree::Product'
   belongs_to :distributor, :class_name => 'Enterprise'
-  belongs_to :shipping_method, :class_name => 'Spree::ShippingMethod'
   belongs_to :enterprise_fee
 
   validates_presence_of :product_id, :on => :update
diff --git a/app/models/spree/ability_decorator.rb b/app/models/spree/ability_decorator.rb
index f5879a0a13..67837feaea 100644
--- a/app/models/spree/ability_decorator.rb
+++ b/app/models/spree/ability_decorator.rb
@@ -4,7 +4,7 @@ class AbilityDecorator
   def initialize(user)
     if user.enterprises.count > 0
 
-      #User can only access products that they are a supplier for
+      #Enterprise User can only access products that they are a supplier for
       can [:create], Spree::Product
       can [:admin, :read, :update, :bulk_edit, :clone, :destroy], Spree::Product  do |product|
         user.enterprises.include? product.supplier
@@ -28,6 +28,11 @@ class AbilityDecorator
       can [:admin, :index, :read, :create, :edit, :update, :fire], Spree::Adjustment
       can [:admin, :index, :read, :create, :edit, :update, :fire], Spree::ReturnAuthorization
 
+      #Enterprise User can only access payment methods for their distributors
+      can [:index, :create], Spree::PaymentMethod
+      can [:admin, :read, :update, :fire, :resend ], Spree::PaymentMethod do |payment_method|
+        user.enterprises.include? payment_method.distributor
+      end
     end
   end
 end
diff --git a/app/models/spree/line_item_decorator.rb b/app/models/spree/line_item_decorator.rb
index edca66c6fb..3b7ee891b8 100644
--- a/app/models/spree/line_item_decorator.rb
+++ b/app/models/spree/line_item_decorator.rb
@@ -1,28 +1,3 @@
 Spree::LineItem.class_eval do
   attr_accessible :max_quantity
-
-  before_create :set_distribution_fee
-
-
-  def update_distribution_fee_without_callbacks!(distributor)
-    set_distribution_fee(distributor)
-    update_column(:distribution_fee, distribution_fee)
-    update_column(:shipping_method_name, shipping_method_name)
-  end
-
-
-  private
-
-  def shipping_method(distributor=nil)
-    distributor ||= self.order.distributor
-    self.product.shipping_method_for_distributor(distributor)
-  end
-
-  def set_distribution_fee(distributor=nil)
-    order = OpenStruct.new :line_items => [self]
-    sm = shipping_method(distributor)
-
-    self.distribution_fee = sm.compute_amount(order)
-    self.shipping_method_name = sm.name
-  end
 end
diff --git a/app/models/spree/order_decorator.rb b/app/models/spree/order_decorator.rb
index 7a01b408bb..b4d94eb45e 100644
--- a/app/models/spree/order_decorator.rb
+++ b/app/models/spree/order_decorator.rb
@@ -9,13 +9,11 @@ Spree::Order.class_eval do
   belongs_to :distributor, :class_name => 'Enterprise'
   belongs_to :cart
 
-  before_validation :shipping_address_from_distributor
   validate :products_available_from_new_distribution, :if => lambda { distributor_id_changed? || order_cycle_id_changed? }
   attr_accessible :order_cycle_id, :distributor_id
 
   before_validation :shipping_address_from_distributor
-  before_save :update_line_item_shipping_methods
-  after_create :set_default_shipping_method
+
 
   # -- Scopes
   scope :managed_by, lambda { |user|
@@ -43,12 +41,6 @@ Spree::Order.class_eval do
     save!
   end
 
-  def empty!
-    line_items.destroy_all
-    adjustments.destroy_all
-    set_default_shipping_method
-  end
-
   def set_distributor!(distributor)
     self.distributor = distributor
     self.order_cycle = nil unless self.order_cycle.andand.has_distributor? distributor
@@ -83,29 +75,14 @@ Spree::Order.class_eval do
     line_items.map { |li| li.variant }
   end
 
-
-  private
-
-  # On creation of the order (when the first item is added to the user's cart), set the
-  # shipping method to the first one available and create a shipment.
-  # order.create_shipment! creates an adjustment for the shipping cost on the order,
-  # which means that the customer can see their shipping cost at every step of the
-  # checkout process, not just after the delivery step.
-  # This is based on the assumption that there's only one shipping method visible to the user,
-  # which is a method using the itemwise shipping calculator.
-  def set_default_shipping_method
-    self.shipping_method = itemwise_shipping_method
-    if self.shipping_method
-      self.save!
-      self.create_shipment!
-    else
-      raise 'No default shipping method found'
+  # Show payment methods with no distributor or for this distributor
+  def available_payment_methods
+    @available_payment_methods ||= Spree::PaymentMethod.available(:front_end).select do |pm| 
+      (self.distributor && (pm.distributor == self.distributor)) || pm.distributor == nil
     end
   end
 
-  def itemwise_shipping_method
-    Spree::ShippingMethod.all.find { |sm| sm.calculator.is_a? OpenFoodWeb::Calculator::Itemwise }
-  end
+  private
 
   def shipping_address_from_distributor
     if distributor
@@ -119,13 +96,6 @@ Spree::Order.class_eval do
     end
   end
 
-  def update_line_item_shipping_methods
-    if %w(cart address delivery resumed).include? state
-      self.line_items.each { |li| li.update_distribution_fee_without_callbacks!(distributor) }
-      self.update!
-    end
-  end
-
   def product_distribution_for(line_item)
     line_item.variant.product.product_distribution_for self.distributor
   end
diff --git a/app/models/spree/payment_method_decorator.rb b/app/models/spree/payment_method_decorator.rb
new file mode 100644
index 0000000000..f8759ac06b
--- /dev/null
+++ b/app/models/spree/payment_method_decorator.rb
@@ -0,0 +1,21 @@
+Spree::PaymentMethod.class_eval do  
+  belongs_to :distributor, :class_name => 'Enterprise'
+
+  attr_accessible :distributor_id
+
+  # -- Scopes
+  scope :in_distributor, lambda { |distributor| where(:distributor_id => distributor) }
+
+  scope :managed_by, lambda { |user|
+    if user.has_spree_role?('admin')
+      scoped
+    else
+      where('distributor_id IN (?)', user.enterprises.map {|enterprise| enterprise.id })
+    end
+  }
+end
+
+# Ensure that all derived classes also allow distributor_id
+Spree::Gateway.providers.each do |p|
+  p.attr_accessible :distributor_id
+end
\ No newline at end of file
diff --git a/app/models/spree/product_decorator.rb b/app/models/spree/product_decorator.rb
index e11b0c2375..dc0b1bbf35 100644
--- a/app/models/spree/product_decorator.rb
+++ b/app/models/spree/product_decorator.rb
@@ -80,23 +80,6 @@ Spree::Product.class_eval do
     self.product_distributions.find_by_distributor_id(distributor)
   end
 
-  # This method is called on products that are distributed via order cycles, but at the time of
-  # writing (27-5-2013), order cycle fees were not implemented, so there's no defined result
-  # that this method should return. As a stopgap, we notify Bugsnag of the situation and return
-  # an undefined, but valid shipping method. When order cycle fees are implemented, this method
-  # should return the order cycle shipping method, or raise an exepction with the message,
-  # "This product is not available through that distributor".
-  def shipping_method_for_distributor(distributor)
-    distribution = product_distribution_for distributor
-
-    unless distribution
-      Bugsnag.notify(Exception.new "No product distribution for product #{id} at distributor #{distributor.andand.id}. Perhaps this product is distributed via an order cycle? This is a warning that OrderCycle fees and shipping methods are not yet implemented, and the shipping fee charged is undefined until then.")
-    end
-
-    distribution.andand.shipping_method || Spree::ShippingMethod.where("name != 'Delivery'").last
-  end
-
-
   # Build a product distribution for each distributor
   def build_product_distributions_for_user user
     Enterprise.is_distributor.managed_by(user).each do |distributor|
diff --git a/app/overrides/add_distributor_fees_to_cart_form.rb b/app/overrides/add_distributor_fees_to_cart_form.rb
deleted file mode 100644
index 883f4622ed..0000000000
--- a/app/overrides/add_distributor_fees_to_cart_form.rb
+++ /dev/null
@@ -1,5 +0,0 @@
-Deface::Override.new(:virtual_path  => "spree/orders/edit",
-                     :insert_after  => "#empty-cart",
-                     :partial       => "spree/orders/distributor_fees",
-                     :name          => "add_distributor_fees_to_cart_form",
-                     :original      => 'b5a751777e66ccbd45d7f1b980ecd201af94cb5b')
diff --git a/app/overrides/spree/admin/payment_methods/_form/add_distributor_to_admin_payment_method_edit.html.haml.deface b/app/overrides/spree/admin/payment_methods/_form/add_distributor_to_admin_payment_method_edit.html.haml.deface
new file mode 100644
index 0000000000..8ac8e7aad9
--- /dev/null
+++ b/app/overrides/spree/admin/payment_methods/_form/add_distributor_to_admin_payment_method_edit.html.haml.deface
@@ -0,0 +1,9 @@
+/
+  insert_before '[data-hook="environment"]'
+
+= f.field_container :distributor do
+  = f.label :distributor
+  %br
+
+  = collection_select(:payment_method, :distributor_id, Enterprise.is_distributor.managed_by(spree_current_user), :id, :name, {:include_blank => true}, {:class => "select2 fullwidth"})
+  = f.error_message_on :distributor
diff --git a/app/views/spree/orders/_distributor_fees.html.haml b/app/views/spree/orders/_distributor_fees.html.haml
deleted file mode 100644
index 015d4d77ee..0000000000
--- a/app/views/spree/orders/_distributor_fees.html.haml
+++ /dev/null
@@ -1,24 +0,0 @@
-#delivery-fees
-  %h2 Distribution Costs
-  = cms_snippet_content(Cms::Snippet.find_by_identifier('cart_distribution_costs'))
-
-  %table#delivery
-    %thead
-      %tr
-        %th Item
-        %th Shipping Method
-        %th Delivery Fee
-    %tbody
-      - @order.line_items.each do |line_item|
-        - tr_class = cycle('', 'alt')
-        %tr{:class => tr_class}
-          %td
-            %h4= link_to line_item.product.name, product_path(line_item.product)
-          %td.item-shipping-method= line_item.shipping_method_name
-          %td.item-shipping-cost= number_to_currency line_item.distribution_fee
-
-  .subtotal{'data-hook' => 'delivery_fees_subtotal'}
-    %h5
-      Shipping total
-      \:
-      %span.order-total= order_delivery_fee_subtotal(@order)
diff --git a/app/views/spree/orders/_inside_cart_form.html.haml b/app/views/spree/orders/_inside_cart_form.html.haml
index 3ae636eb85..502546113f 100644
--- a/app/views/spree/orders/_inside_cart_form.html.haml
+++ b/app/views/spree/orders/_inside_cart_form.html.haml
@@ -8,9 +8,9 @@
       \:
       %span.order-total.item-total= number_to_currency @order.item_total
     %h5
-      Shipping total
+      Distribution total
       \:
-      %span.order-total.shipping-total= order_delivery_fee_subtotal(@order)
+      %span.order-total.distribution-total= order_distribution_subtotal(@order)
     %h4
       Total
       \:
diff --git a/config/application.rb b/config/application.rb
index 3eb4699719..f0d852500a 100644
--- a/config/application.rb
+++ b/config/application.rb
@@ -26,7 +26,6 @@ module Openfoodweb
 
     # Register Spree calculators
     initializer "spree.register.calculators" do |app|
-      app.config.spree.calculators.shipping_methods << OpenFoodWeb::Calculator::Itemwise
       app.config.spree.calculators.shipping_methods << OpenFoodWeb::Calculator::Weight
 
       app.config.spree.calculators.enterprise_fees = [Spree::Calculator::FlatPercentItemTotal,
diff --git a/db/migrate/20130807062657_add_distributor_id_to_payment_method.rb b/db/migrate/20130807062657_add_distributor_id_to_payment_method.rb
new file mode 100644
index 0000000000..26ea241019
--- /dev/null
+++ b/db/migrate/20130807062657_add_distributor_id_to_payment_method.rb
@@ -0,0 +1,5 @@
+class AddDistributorIdToPaymentMethod < ActiveRecord::Migration
+  def change
+    add_column :spree_payment_methods, :distributor_id, :integer
+  end
+end
diff --git a/db/migrate/20130812233634_remove_shipping_method_from_product_distribution.rb b/db/migrate/20130812233634_remove_shipping_method_from_product_distribution.rb
new file mode 100644
index 0000000000..cf3fee3020
--- /dev/null
+++ b/db/migrate/20130812233634_remove_shipping_method_from_product_distribution.rb
@@ -0,0 +1,9 @@
+class RemoveShippingMethodFromProductDistribution < ActiveRecord::Migration
+  def up
+    remove_column :product_distributions, :shipping_method_id
+  end
+
+  def down
+    add_column :product_distributions, :shipping_method_id, :integer
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index ac3280a415..d9eff970c6 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -11,7 +11,7 @@
 #
 # It's strongly recommended to check this file into your version control system.
 
-ActiveRecord::Schema.define(:version => 20130809075103) do
+ActiveRecord::Schema.define(:version => 20130812233634) do
 
   create_table "adjustment_metadata", :force => true do |t|
     t.integer "adjustment_id"
@@ -229,7 +229,6 @@ ActiveRecord::Schema.define(:version => 20130809075103) do
   create_table "product_distributions", :force => true do |t|
     t.integer  "product_id"
     t.integer  "distributor_id"
-    t.integer  "shipping_method_id"
     t.datetime "created_at"
     t.datetime "updated_at"
     t.integer  "enterprise_fee_id"
@@ -470,12 +469,13 @@ ActiveRecord::Schema.define(:version => 20130809075103) do
     t.string   "type"
     t.string   "name"
     t.text     "description"
-    t.boolean  "active",      :default => true
-    t.string   "environment", :default => "development"
-    t.datetime "created_at",                             :null => false
-    t.datetime "updated_at",                             :null => false
+    t.boolean  "active",         :default => true
+    t.string   "environment",    :default => "development"
+    t.datetime "created_at",                                :null => false
+    t.datetime "updated_at",                                :null => false
     t.datetime "deleted_at"
     t.string   "display_on"
+    t.integer  "distributor_id"
   end
 
   create_table "spree_payments", :force => true do |t|
diff --git a/db/suburb_seeds.rb b/db/suburb_seeds.rb
index 054be282ce..8085551be5 100644
--- a/db/suburb_seeds.rb
+++ b/db/suburb_seeds.rb
@@ -11,7 +11,7 @@ module SuburbSeeder
 
 		connection = ActiveRecord::Base.connection()
 
-		puts "-- Seeding australian suburbs"
+		puts "-- Seeding Australian suburbs"
 		connection.execute("
 			INSERT INTO suburbs (postcode,name,state_id,latitude,longitude) VALUES
 			(200,$$AUSTRALIAN NATIONAL UNIVERSITY$$,#{state_id_act},-35.277272,149.117136),
@@ -16894,4 +16894,4 @@ module SuburbSeeder
 			(6060,$$Yokine South$$,#{state_id_wa},-31.9097,115.849);
 		")
 	end
-end
\ No newline at end of file
+end
diff --git a/lib/tasks/dev.rake b/lib/tasks/dev.rake
index 495343fc27..5d9e2809e0 100644
--- a/lib/tasks/dev.rake
+++ b/lib/tasks/dev.rake
@@ -72,11 +72,7 @@ namespace :openfoodweb do
         FactoryGirl.create(:distributor_enterprise, :address => Spree::Address.find_by_zipcode("3040"))
       end
 
-      unless Spree::ShippingMethod.all.any? { |sm| sm.calculator.is_a? OpenFoodWeb::Calculator::Itemwise }
-        FactoryGirl.create(:itemwise_shipping_method)
-      end
-
-      # -- Enterprise Users
+      # -- Enterprise users
       unless Spree::User.count > 1 
         puts "[#{task_name}] Seeding enterprise users"
 
@@ -93,6 +89,13 @@ namespace :openfoodweb do
         puts "  Distributor User created: #{u.email}/#{pw} (" + u.enterprise_roles.map{ |er| er.enterprise.name}.join(", ") + ")"
       end
 
+      # -- Enterprise fees
+      unless EnterpriseFee.count > 1
+        Enterprise.is_distributor.each do |distributor|
+          FactoryGirl.create(:enterprise_fee, enterprise: distributor)
+        end
+      end
+
       # -- Products
       unless Spree::Product.count > 0
         puts "[#{task_name}] Seeding products"
@@ -104,7 +107,7 @@ namespace :openfoodweb do
 
         ProductDistribution.create(:product => prod1,
                                    :distributor => Enterprise.is_distributor[0],
-                                   :shipping_method => Spree::ShippingMethod.first)
+                                   :enterprise_fee => Enterprise.is_distributor[0].enterprise_fees.first)
 
 
         prod2 = FactoryGirl.create(:product,
@@ -114,7 +117,7 @@ namespace :openfoodweb do
 
         ProductDistribution.create(:product => prod2,
                                    :distributor => Enterprise.is_distributor[1],
-                                   :shipping_method => Spree::ShippingMethod.first)
+                                   :enterprise_fee => Enterprise.is_distributor[1].enterprise_fees.first)
 
         prod3 = FactoryGirl.create(:product,
                            :name => 'Beef - 5kg Trays', :price => 50.00,
@@ -123,7 +126,7 @@ namespace :openfoodweb do
 
         ProductDistribution.create(:product => prod3,
                                    :distributor => Enterprise.is_distributor[2],
-                                   :shipping_method => Spree::ShippingMethod.first)
+                                   :enterprise_fee => Enterprise.is_distributor[2].enterprise_fees.first)
       end
     end
   end
diff --git a/spec/controllers/enterprises_controller_spec.rb b/spec/controllers/enterprises_controller_spec.rb
index 93782ff21a..45d0374a84 100644
--- a/spec/controllers/enterprises_controller_spec.rb
+++ b/spec/controllers/enterprises_controller_spec.rb
@@ -1,11 +1,6 @@
 require 'spec_helper'
 
 describe EnterprisesController do
-  before :each do
-    stub!(:before_save_new_order)
-    stub!(:after_save_new_order)
-  end
-
   it "displays suppliers" do
     s = create(:supplier_enterprise)
     d = create(:distributor_enterprise)
diff --git a/spec/factories.rb b/spec/factories.rb
index b652afd596..1cdf062e9b 100644
--- a/spec/factories.rb
+++ b/spec/factories.rb
@@ -92,11 +92,6 @@ FactoryGirl.define do
     enterprise_fee  { |pd| FactoryGirl.create(:enterprise_fee, enterprise: pd.distributor) }
   end
 
-  factory :itemwise_shipping_method, :parent => :shipping_method do
-    name 'Delivery'
-    calculator { FactoryGirl.build(:itemwise_calculator) }
-  end
-
   factory :adjustment_metadata, :class => AdjustmentMetadata do
     adjustment { FactoryGirl.create(:adjustment) }
     enterprise { FactoryGirl.create(:distributor_enterprise) }
@@ -105,9 +100,6 @@ FactoryGirl.define do
     enterprise_role 'distributor'
   end
 
-  factory :itemwise_calculator, :class => OpenFoodWeb::Calculator::Itemwise do
-  end
-
   factory :weight_calculator, :class => OpenFoodWeb::Calculator::Weight do
     after(:build)  { |c| c.set_preference(:per_kg, 0.5) }
     after(:create) { |c| c.set_preference(:per_kg, 0.5); c.save! }
diff --git a/spec/features/admin/payment_method_spec.rb b/spec/features/admin/payment_method_spec.rb
new file mode 100644
index 0000000000..67274ba5c8
--- /dev/null
+++ b/spec/features/admin/payment_method_spec.rb
@@ -0,0 +1,34 @@
+require "spec_helper"
+
+feature %q{
+    As a Super Admin
+    I want to be able to set a distributor on each payment method
+} do
+  include AuthenticationWorkflow
+  include WebHelper
+
+  background do
+    @distributors = (1..3).map { create(:distributor_enterprise) }
+  end
+
+  #Create and Edit uses same partial form
+  context "creating a payment method", js: true do 
+    scenario "assigning a distributor to the payment method" do
+      login_to_admin_section
+
+      click_link 'Configuration'
+      click_link 'Payment Methods'
+      click_link 'New Payment Method'
+
+      fill_in 'payment_method_name', :with => 'Cheque payment method'
+
+      select @distributors[0].name, :from => 'payment_method_distributor_id'
+      click_button 'Create'
+
+      flash_message.should == 'Payment Method has been successfully created!'
+      
+      payment_method = Spree::PaymentMethod.find_by_name('Cheque payment method')
+      payment_method.distributor.should == @distributors[0]
+    end
+  end
+end
diff --git a/spec/features/chili/enterprises_distributor_info_rich_text_feature_spec.rb b/spec/features/chili/enterprises_distributor_info_rich_text_feature_spec.rb
index ed56b57ed3..cd95945f8b 100644
--- a/spec/features/chili/enterprises_distributor_info_rich_text_feature_spec.rb
+++ b/spec/features/chili/enterprises_distributor_info_rich_text_feature_spec.rb
@@ -90,7 +90,7 @@ feature "enterprises distributor info as rich text" do
     zone = create(:zone)
     c = Spree::Country.find_by_name('Australia')
     Spree::ZoneMember.create(:zoneable => c, :zone => zone)
-    create(:itemwise_shipping_method, zone: zone)
+    create(:shipping_method, zone: zone)
     create(:payment_method, :description => 'Cheque payment method')
   end
 
diff --git a/spec/features/consumer/add_to_cart_spec.rb b/spec/features/consumer/add_to_cart_spec.rb
index c5e01c1efb..ffcc8c3e12 100644
--- a/spec/features/consumer/add_to_cart_spec.rb
+++ b/spec/features/consumer/add_to_cart_spec.rb
@@ -33,12 +33,12 @@ feature %q{
       d2 = create(:distributor_enterprise)
       create(:product, :distributors => [d2])
       p = create(:product, :price => 12.34)
-      create(:product_distribution, :product => p, :distributor => d1, :shipping_method => create(:shipping_method))
+      create(:product_distribution, :product => p, :distributor => d1)
 
-      # ... with a flat rate shipping method of cost $1.23
-      sm = p.product_distributions.first.shipping_method
-      sm.calculator.preferred_amount = 1.23
-      sm.calculator.save!
+      # ... with a flat rate distribution fee of $1.23
+      ef = p.product_distributions.first.enterprise_fee
+      ef.calculator = Spree::Calculator::FlatRate.new preferred_amount: 1.23
+      ef.calculator.save!
 
       # When I choose a distributor
       visit spree.root_path
@@ -51,15 +51,13 @@ feature %q{
 
       # Then the correct totals should be displayed
       page.should have_selector 'span.item-total', :text => '$12.34'
-      page.should have_selector 'span.shipping-total', :text => '$1.23'
+      page.should have_selector 'span.distribution-total', :text => '$1.23'
       page.should have_selector 'span.grand-total', :text => '$13.57'
 
-      # And the item should be in my cart, with the distribution info set for the line item
+      # And the item should be in my cart
       order = Spree::Order.last
       line_item = order.line_items.first
       line_item.product.should == p
-      line_item.distribution_fee.should == 1.23
-      line_item.shipping_method_name.should == p.product_distributions.first.shipping_method.name
 
       # And my order should have its distributor set to the chosen distributor
       order.distributor.should == d1
@@ -229,7 +227,7 @@ feature %q{
       page.should have_selector 'span.item-total', :text => '$12.34'
 
       # TODO: Test these when order cycle fees is implemented
-      # page.should have_selector 'span.shipping-total', :text => '$1.23'
+      # page.should have_selector 'span.distribution-total', :text => '$1.23'
       # page.should have_selector 'span.grand-total', :text => '$13.57'
 
       # And the item should be in my cart
diff --git a/spec/features/consumer/checkout_spec.rb b/spec/features/consumer/checkout_spec.rb
index 873366ec0f..d9220c59aa 100644
--- a/spec/features/consumer/checkout_spec.rb
+++ b/spec/features/consumer/checkout_spec.rb
@@ -37,27 +37,30 @@ feature %q{
                                              :country => Spree::Country.find_by_name('Australia')),
                           :pickup_times => 'Tuesday, 4 PM')    
 
-    @shipping_method_1 = create(:shipping_method, :name => 'Shipping Method One')
-    @shipping_method_1.calculator.set_preference :amount, 1
-    @shipping_method_1.calculator.save!
+    @enterprise_fee_1 = create(:enterprise_fee, :name => 'Shipping Method One', :calculator => Spree::Calculator::FlatRate.new)
+    @enterprise_fee_1.calculator.set_preference :amount, 1
+    @enterprise_fee_1.calculator.save!
 
-    @shipping_method_2 = create(:shipping_method, :name => 'Shipping Method Two')
-    @shipping_method_2.calculator.set_preference :amount, 2
-    @shipping_method_2.calculator.save!
+    @enterprise_fee_2 = create(:enterprise_fee, :name => 'Shipping Method Two', :calculator => Spree::Calculator::FlatRate.new)
+    @enterprise_fee_2.calculator.set_preference :amount, 2
+    @enterprise_fee_2.calculator.save!
 
     @product_1 = create(:product, :name => 'Fuji apples')
-    @product_1.product_distributions.create(:distributor => @distributor, :shipping_method => @shipping_method_1)
-    @product_1.product_distributions.create(:distributor => @distributor_alternative, :shipping_method => @shipping_method_1)
+    @product_1.product_distributions.create(:distributor => @distributor, :enterprise_fee => @enterprise_fee_1)
+    @product_1.product_distributions.create(:distributor => @distributor_alternative, :enterprise_fee => @enterprise_fee_1)
 
     @product_2 = create(:product, :name => 'Garlic')
-    @product_2.product_distributions.create(:distributor => @distributor, :shipping_method => @shipping_method_2)
-    @product_2.product_distributions.create(:distributor => @distributor_alternative, :shipping_method => @shipping_method_2)
+    @product_2.product_distributions.create(:distributor => @distributor, :enterprise_fee => @enterprise_fee_2)
+    @product_2.product_distributions.create(:distributor => @distributor_alternative, :enterprise_fee => @enterprise_fee_2)
 
     @zone = create(:zone)
     c = Spree::Country.find_by_name('Australia')
     Spree::ZoneMember.create(:zoneable => c, :zone => @zone)
-    create(:itemwise_shipping_method, zone: @zone)
-    create(:payment_method, :description => 'Cheque payment method')
+    create(:shipping_method, zone: @zone)
+
+    @payment_method_all = create(:payment_method, :name => 'Cheque payment method', :description => 'Cheque payment method') #valid for any distributor
+    @payment_method_distributor = create(:payment_method, :name => 'Edible Garden payment method', :distributor => @distributor)
+    @payment_method_alternative = create(:payment_method, :name => 'Alternative Distributor payment method', :distributor => @distributor_alternative)
   end
 
 
@@ -80,30 +83,32 @@ feature %q{
     # Fuji apples | Shipping Method One | $1.00
     #
     # Subtotal: $3.00
-    table = page.find 'table#delivery'
-    rows = table.all('tr')
-    rows[0].all('th').map { |cell| cell.text.strip }.should == ['Item',        'Shipping Method',     'Delivery Fee']
-    rows[1].all('td').map { |cell| cell.text.strip }.should == ['Fuji apples', 'Shipping Method One', '$1.00']
-    rows[2].all('td').map { |cell| cell.text.strip }.should == ['Garlic',      'Shipping Method Two', '$2.00']
-    page.should have_selector '#delivery-fees span.order-total', :text => '$3.00'
+
+    # Disabled pending spec for the new table
+    # table = page.find 'table#delivery'
+    # rows = table.all('tr')
+    # rows[0].all('th').map { |cell| cell.text.strip }.should == ['Item',        'Shipping Method',     'Delivery Fee']
+    # rows[1].all('td').map { |cell| cell.text.strip }.should == ['Fuji apples', 'Shipping Method One', '$1.00']
+    # rows[2].all('td').map { |cell| cell.text.strip }.should == ['Garlic',      'Shipping Method Two', '$2.00']
+    # page.should have_selector '#delivery-fees span.order-total', :text => '$3.00'
   end
 
   scenario "changing distributor updates delivery fees" do
-    # Given two distributors and shipping methods
+    # Given two distributors and enterprise fees
     d1 = create(:distributor_enterprise)
     d2 = create(:distributor_enterprise)
-    sm1 = create(:shipping_method)
-    sm1.calculator.set_preference :amount, 1.23; sm1.calculator.save!
-    sm2 = create(:free_shipping_method)
-    sm2.calculator.set_preference :amount, 2.34; sm2.calculator.save!
+    ef1 = create(:enterprise_fee, calculator: Spree::Calculator::FlatRate.new)
+    ef1.calculator.set_preference :amount, 1.23; ef1.calculator.save!
+    ef2 = create(:enterprise_fee, calculator: Spree::Calculator::FlatRate.new)
+    ef2.calculator.set_preference :amount, 2.34; ef2.calculator.save!
 
     # And two products both available from both distributors
     p1 = create(:product)
-    create(:product_distribution, product: p1, distributor: d1, shipping_method: sm1)
-    create(:product_distribution, product: p1, distributor: d2, shipping_method: sm2)
+    create(:product_distribution, product: p1, distributor: d1, enterprise_fee: ef1)
+    create(:product_distribution, product: p1, distributor: d2, enterprise_fee: ef2)
     p2 = create(:product)
-    create(:product_distribution, product: p2, distributor: d1, shipping_method: sm1)
-    create(:product_distribution, product: p2, distributor: d2, shipping_method: sm2)
+    create(:product_distribution, product: p2, distributor: d1, enterprise_fee: ef1)
+    create(:product_distribution, product: p2, distributor: d2, enterprise_fee: ef2)
 
     # When I add the first product to my cart with the first distributor
     #visit spree.root_path
@@ -113,7 +118,7 @@ feature %q{
     click_button 'Add To Cart'
 
     # Then I should see shipping costs for the first distributor
-    page.should have_selector 'span.shipping-total', text: '$1.23'
+    page.should have_selector 'span.distribution-total', text: '$1.23'
 
     # When add the second with the second distributor
     click_link 'Continue shopping'
@@ -122,7 +127,7 @@ feature %q{
     click_button 'Add To Cart'
 
     # Then I should see shipping costs for the second distributor
-    page.should have_selector 'span.shipping-total', text: '$4.68'
+    page.should have_selector 'span.distribution-total', text: '$4.68'
   end
 
   scenario "adding a product to cart after emptying cart shows correct delivery fees" do
@@ -195,15 +200,21 @@ feature %q{
     click_checkout_continue_button
 
     # -- Checkout: Delivery
-    page.should have_selector 'label', :text => "Delivery $3.00"
+    order_charges = page.all("tbody#summary-order-charges tr").map {|row| row.all('td').map(&:text)}.take(2)
+    order_charges.should == [["Product distribution by Edible garden for Fuji apples:", "$1.00"],
+                             ["Product distribution by Edible garden for Garlic:",      "$2.00"]]
     click_checkout_continue_button
 
     # -- Checkout: Payment
+    # Given the distributor I have selected for my order, I should only see payment methods valid for that distributor
+    page.should have_selector     'label', :text => @payment_method_all.name
+    page.should have_selector     'label', :text => @payment_method_distributor.name
+    page.should_not have_selector 'label', :text => @payment_method_alternative.name
     click_checkout_continue_button
 
     # -- Checkout: Order complete
     page.should have_content('Your order has been processed successfully')
-    page.should have_content('Cheque payment method')
+    page.should have_content(@payment_method_all.description)
 
 
     # page.should have_content('Your order will be available on:')
diff --git a/spec/helpers/products_helper_spec.rb b/spec/helpers/products_helper_spec.rb
index a6e16bab55..040fad5db3 100644
--- a/spec/helpers/products_helper_spec.rb
+++ b/spec/helpers/products_helper_spec.rb
@@ -22,13 +22,8 @@ module Spree
 
     private
     def make_variant_stub(product_price, variant_price)
-      product = stub(:product)
-      product.stub(:price).and_return(product_price)
-
-      variant = stub(:variant)
-      variant.stub(:product).and_return(product)
-      variant.stub(:price).and_return(variant_price)
-
+      product = double(:product, price: product_price)
+      variant = double(:variant, product: product, price: variant_price)
       variant
     end
   end
diff --git a/spec/lib/open_food_web/group_buy_report_spec.rb b/spec/lib/open_food_web/group_buy_report_spec.rb
index ec23cab070..23bfc70957 100644
--- a/spec/lib/open_food_web/group_buy_report_spec.rb
+++ b/spec/lib/open_food_web/group_buy_report_spec.rb
@@ -13,8 +13,7 @@ module OpenFoodWeb
       @variant1 = create(:variant)
       @variant1.product.supplier = @supplier1
       @variant1.product.save!
-      shipping_method = create(:shipping_method)
-      product_distribution = create(:product_distribution, :product => @variant1.product, :distributor => distributor, :shipping_method => create(:shipping_method))
+      product_distribution = create(:product_distribution, :product => @variant1.product, :distributor => distributor)
       shipping_instructions = "pick up on thursday please!"
 
       order1 = create(:order, :distributor => distributor, :bill_address => bill_address, :special_instructions => shipping_instructions)
@@ -29,7 +28,7 @@ module OpenFoodWeb
       @variant2 = create(:variant)
       @variant2.product.supplier = @supplier1
       @variant2.product.save!
-      product_distribution = create(:product_distribution, :product => @variant2.product, :distributor => distributor, :shipping_method => create(:shipping_method))
+      product_distribution = create(:product_distribution, :product => @variant2.product, :distributor => distributor)
 
       line_item22 = create(:line_item, :variant => @variant2, :order => order2)
       order2.line_items << line_item22
@@ -39,7 +38,7 @@ module OpenFoodWeb
       @variant3 = create(:variant, :weight => nil)
       @variant3.product.supplier = @supplier2
       @variant3.product.save!
-      product_distribution = create(:product_distribution, :product => @variant3.product, :distributor => distributor, :shipping_method => create(:shipping_method))
+      product_distribution = create(:product_distribution, :product => @variant3.product, :distributor => distributor)
 
       order3 = create(:order, :distributor => distributor, :bill_address => bill_address, :special_instructions => shipping_instructions)
       line_item31 = create(:line_item, :variant => @variant3, :order => order3)
diff --git a/spec/lib/open_food_web/order_and_distributor_report_spec.rb b/spec/lib/open_food_web/order_and_distributor_report_spec.rb
index cabeb5010f..d003254f7b 100644
--- a/spec/lib/open_food_web/order_and_distributor_report_spec.rb
+++ b/spec/lib/open_food_web/order_and_distributor_report_spec.rb
@@ -11,7 +11,7 @@ module OpenFoodWeb
         @distributor_address = create(:address, :address1 => "distributor address", :city => 'The Shire', :zipcode => "1234")
         @distributor = create(:distributor_enterprise, :address => @distributor_address)
         product = create(:product)
-        product_distribution = create(:product_distribution, :product => product, :distributor => @distributor, :shipping_method => create(:shipping_method))
+        product_distribution = create(:product_distribution, :product => product, :distributor => @distributor)
         @shipping_instructions = "pick up on thursday please!"
         @order = create(:order, :distributor => @distributor, :bill_address => @bill_address, :special_instructions => @shipping_instructions)
         @payment_method = create(:payment_method)
diff --git a/spec/lib/open_food_web/split_products_by_distribution_spec.rb b/spec/lib/open_food_web/split_products_by_distribution_spec.rb
index afba1ebb9d..678f94c327 100644
--- a/spec/lib/open_food_web/split_products_by_distribution_spec.rb
+++ b/spec/lib/open_food_web/split_products_by_distribution_spec.rb
@@ -66,15 +66,8 @@ describe OpenFoodWeb::SplitProductsByDistribution do
   def build_product(distributor, in_distributor, order_cycle, in_order_cycle)
     product = double(:product)
 
-    if distributor
-      product.should_receive(:in_distributor?).any_number_of_times.
-        with(distributor).and_return(in_distributor)
-    end
-
-    if order_cycle
-      product.should_receive(:in_order_cycle?).any_number_of_times.
-        with(order_cycle).and_return(in_order_cycle)
-    end
+    product.stub(:in_distributor?) { in_distributor } if distributor
+    product.stub(:in_order_cycle?) { in_order_cycle } if order_cycle
 
     product
   end
diff --git a/spec/models/calculator/itemwise_spec.rb b/spec/models/calculator/itemwise_spec.rb
deleted file mode 100644
index 781a285e80..0000000000
--- a/spec/models/calculator/itemwise_spec.rb
+++ /dev/null
@@ -1,20 +0,0 @@
-require 'spec_helper'
-
-describe OpenFoodWeb::Calculator::Itemwise do
-  it "computes the shipping cost for each line item in an order" do
-    line_item = double(:line_item)
-    line_item.should_receive(:distribution_fee).exactly(3).times.and_return(10)
-
-    order = double(:order)
-    order.stub(:line_items).and_return([line_item]*3)
-
-    subject.compute(order).should == 30
-  end
-
-  it "returns zero for an order with no items" do
-    order = double(:order)
-    order.stub(:line_items).and_return([])
-
-    subject.compute(order).should == 0
-  end
-end
diff --git a/spec/models/line_item_spec.rb b/spec/models/line_item_spec.rb
index 2b46b7d7f7..b238500b8e 100644
--- a/spec/models/line_item_spec.rb
+++ b/spec/models/line_item_spec.rb
@@ -2,53 +2,5 @@ require 'spec_helper'
 
 module Spree
   describe LineItem do
-    describe "computing shipping cost for its product" do
-      let(:shipping_method_10) do
-        sm = create(:shipping_method, name: 'SM10')
-        sm.calculator.set_preference :amount, 10
-        sm
-      end
-      let(:shipping_method_20) do
-        sm = create(:shipping_method, name: 'SM20')
-        sm.calculator.set_preference :amount, 20
-        sm
-      end
-      let(:distributor1) { create(:distributor_enterprise) }
-      let(:distributor2) { create(:distributor_enterprise) }
-      let!(:product) do
-        p = create(:product)
-        create(:product_distribution, product: p, distributor: distributor1, shipping_method: shipping_method_10)
-        create(:product_distribution, product: p, distributor: distributor2, shipping_method: shipping_method_20)
-        p
-      end
-      let(:order_d1) { create(:order, distributor: distributor1, state: 'complete') }
-
-      it "sets distribution fee and shipping method name on creation" do
-        li = create(:line_item, order: order_d1, product: product)
-        li.distribution_fee.should == 10
-        li.shipping_method_name.should == 'SM10'
-      end
-
-      it "updates its distribution fee & shipping method name" do
-        li = create(:line_item, order: order_d1, product: product)
-
-        li.update_distribution_fee_without_callbacks! distributor2
-
-        li.distribution_fee.should == 20
-        li.shipping_method_name.should == 'SM20'
-      end
-
-      describe "fetching its shipping method" do
-        it "fetches the shipping method for its product when distributor is supplied" do
-          li = create(:line_item, order: order_d1, product: product)
-          li.send(:shipping_method, distributor2).should == shipping_method_20
-        end
-
-        it "uses the order's distributor when no other distributor is provided" do
-          li = create(:line_item, order: order_d1, product: product)
-          li.send(:shipping_method).should == shipping_method_10
-        end
-      end
-    end
   end
 end
diff --git a/spec/models/order_spec.rb b/spec/models/order_spec.rb
index 2cb7dc97e8..fe8051ee3c 100644
--- a/spec/models/order_spec.rb
+++ b/spec/models/order_spec.rb
@@ -1,19 +1,6 @@
 require 'spec_helper'
 
 describe Spree::Order do
-  it "initialises a default shipping method after creation" do
-    shipping_method_regular = create(:shipping_method)
-    shipping_method_itemwise = create(:itemwise_shipping_method)
-
-    subject.shipping_method.should be_nil
-    subject.adjustments.should be_empty
-
-    subject.save!
-
-    subject.shipping_method.should == shipping_method_itemwise
-    subject.adjustments.where(:label => "Shipping").should be_present
-  end
-
   it "sets attributes on line items for variants" do
     d = create(:distributor_enterprise)
     p = create(:product, :distributors => [d])
diff --git a/spec/models/product_spec.rb b/spec/models/product_spec.rb
index b6d9e5ac36..e60ebb0281 100644
--- a/spec/models/product_spec.rb
+++ b/spec/models/product_spec.rb
@@ -191,24 +191,6 @@ module Spree
         product_distribution = create(:product_distribution, product: product, distributor: distributor)
         product.product_distribution_for(distributor).should == product_distribution
       end
-
-      it "finds the shipping method for a particular distributor" do
-        shipping_method = create(:shipping_method)
-        distributor = create(:distributor_enterprise)
-        product = create(:product)
-        product_distribution = create(:product_distribution, product: product, distributor: distributor, shipping_method: shipping_method)
-        product.shipping_method_for_distributor(distributor).should == shipping_method
-      end
-
-      it "logs an error and returns an undefined shipping method if distributor is not found" do
-        distributor = create(:distributor_enterprise)
-        product = create(:product)
-
-        Bugsnag.should_receive(:notify)
-
-        product.shipping_method_for_distributor(distributor).should ==
-          Spree::ShippingMethod.where("name != 'Delivery'").last
-      end
     end
 
     describe "membership" do
diff --git a/spec/support/spree/init.rb b/spec/support/spree/init.rb
index c60c7bc0d4..0007680de7 100644
--- a/spec/support/spree/init.rb
+++ b/spec/support/spree/init.rb
@@ -8,21 +8,3 @@ ProductDistribution.class_eval do
     self.enterprise_fee ||= EnterpriseFee.where(enterprise_id: distributor).first || FactoryGirl.create(:enterprise_fee, enterprise_id: distributor)
   end
 end
-
-Spree::Product.class_eval do
-  before_validation :init_shipping_method
-
-  def init_shipping_method
-    FactoryGirl.create(:shipping_method) if Spree::ShippingMethod.where("name != 'Delivery'").empty?
-  end
-
-end
-
-# Create a default shipping method, required when creating orders
-Spree::Order.class_eval do
-  before_create :init_shipping_method
-
-  def init_shipping_method
-    FactoryGirl.create(:itemwise_shipping_method) unless Spree::ShippingMethod.all.any? { |sm| sm.calculator.is_a? OpenFoodWeb::Calculator::Itemwise }
-  end
-end