diff --git a/distribution.py b/distribution.py
index 271494b..4ce28f1 100644
--- a/distribution.py
+++ b/distribution.py
@@ -359,6 +359,31 @@ async def apply_partial_dispense_and_redistribute(
     return after if after is not None else updated
 
 
+async def settle_cash_owed_settlement(
+    settlement: DcaSettlement, note: str, author_user_id: str
+) -> DcaSettlement:
+    """ADR-005 §6 — operator paid the customer by hand. The sale is whole, so
+    the settlement distributes at the full amount it landed with. The note is
+    the provenance; `remediated` on the machine side comes from the
+    settle_transaction op the endpoint publishes."""
+    from .crud import append_settlement_note
+
+    if settlement.status not in ("cash_owed", "partial_pending"):
+        raise ValueError(f"settlement {settlement.id} is {settlement.status!r}")
+    await append_settlement_note(
+        settlement.id, f"Settled off-machine (full amount): {note}", author_user_id
+    )
+    await mark_settlement_status(settlement.id, "pending", None)
+    logger.info(
+        f"distribution: settlement {settlement.id} settled off-machine by "
+        f"{author_user_id[:8]}… — distributing in full"
+    )
+    await process_settlement(settlement.id)
+    after = await get_settlement(settlement.id)
+    assert after is not None
+    return after
+
+
 async def process_settlement(settlement_id: str) -> None:
     """Process a pending settlement end-to-end.
 
diff --git a/views_api.py b/views_api.py
index 7d6bf9f..fd6d69e 100644
--- a/views_api.py
+++ b/views_api.py
@@ -74,6 +74,7 @@ from .crud import (
 )
 from .distribution import (
     apply_partial_dispense_and_redistribute,
+    settle_cash_owed_settlement,
     process_settlement,
     settle_lp_balance,
 )
@@ -95,6 +96,7 @@ from .models import (
     Machine,
     PairMachineData,
     PartialDispenseData,
+    SettleCashOwedData,
     SetCommissionSplitsData,
     SettleBalanceData,
     StuckSettlementsResponse,
@@ -815,6 +817,67 @@ async def api_get_settlement(
     return settlement
 
 
+
+@spirekeeper_api_router.post(
+    "/api/v1/dca/settlements/{settlement_id}/settle-cash-owed",
+    response_model=DcaSettlement,
+)
+async def api_settle_cash_owed(
+    settlement_id: str,
+    data: SettleCashOwedData,
+    user: User = Depends(check_user_exists),
+) -> DcaSettlement:
+    """ADR-005 §6 — the operator paid the customer outside the machine.
+
+    For a settlement in cash_owed or partial_pending: appends the provenance
+    note, moves it to pending and distributes at the FULL amount (the customer
+    is whole, so the sale is the full sale), and publishes a `settle_transaction`
+    op so the machine flips its own `dispense_error` / `partial` row to
+    `remediated`. Both ledgers close on one act; nothing is dispensed.
+
+    Until now the only way to clear an owed-cash row was to dispense more cash
+    from the machine that had just jammed.
+
+    Errors: 404 not yours; 409 wrong status. The machine op is best-effort —
+    recorded, and delivered with the next publish if the relay is down.
+    """
+    settlement = await get_settlement(settlement_id)
+    if settlement is None:
+        raise HTTPException(HTTPStatus.NOT_FOUND, "Settlement not found")
+    machine = await get_machine(settlement.machine_id)
+    if machine is None or machine.operator_user_id != user.id:
+        raise HTTPException(HTTPStatus.NOT_FOUND, "Settlement not found")
+    if settlement.status not in ("cash_owed", "partial_pending"):
+        raise HTTPException(
+            HTTPStatus.CONFLICT,
+            f"settlement is {settlement.status!r}; only cash_owed / partial_pending "
+            "can be settled off-machine",
+        )
+    updated = await settle_cash_owed_settlement(settlement, data.note, user.id)
+
+    if machine.machine_npub and settlement.bitspire_txid:
+        try:
+            await create_cassette_op(
+                machine.id,
+                CreateCassetteOpData(
+                    position=0,
+                    op_type="settle_transaction",
+                    txid=settlement.bitspire_txid,
+                    note=data.note,
+                ),
+                created_by=user.id,
+            )
+            window = await get_cassette_ops_window(machine.id)
+            await publish_ops_to_atm(machine, window, user.id)
+        except (OperatorIdentityMissing, SignerUnavailable, RelayUnavailable) as exc:
+            logger.warning(
+                f"spirekeeper: settle_transaction op for {settlement.bitspire_txid} "
+                f"recorded but not published yet: {exc}"
+            )
+        except CassetteTransportError as exc:
+            logger.error(f"spirekeeper: settle_transaction publish failed: {exc}")
+    return updated
+
 @spirekeeper_api_router.post(
     "/api/v1/dca/settlements/{settlement_id}/partial-dispense",
     response_model=DcaSettlement,