I've had success creating both logical and physical meters and associating logical meters to equipment and physical meters to logical meters. What I have been unable to do to this point is replace a physical meter.
Scenario: A vehicle's odometer is damaged and needs replacing. The new odometer begins at 0 (or some meter reading lower than the logical meter). I associate the new physical meter to the logical meter.
What I've not had success doing is capturing new meter readings and getting the logical meter to continue to calculate usage.
Since you updated the physical meter have you entered in a new meter reading. This should be done by selecting the meter record, then clicking actions and enter meter reading. Then you enter in either the reading or the difference depending on what you choose. Then the usage will be reflected in the total usage field.