diff --git a/CRM/Financial/BAO/Payment.php b/CRM/Financial/BAO/Payment.php
index be7c9042585..d08e9c827df 100644
--- a/CRM/Financial/BAO/Payment.php
+++ b/CRM/Financial/BAO/Payment.php
@@ -102,7 +102,6 @@ public static function create($params) {
     }
     elseif ($params['total_amount'] < 0) {
       $trxn = self::recordRefundPayment($params['contribution_id'], $params, FALSE);
-      CRM_Contribute_BAO_Contribution::recordPaymentActivity($params['contribution_id'], CRM_Utils_Array::value('participant_id', $params), $params['total_amount'], $trxn->currency, $trxn->trxn_date);
     }
 
     if ($isPaymentCompletesContribution) {
@@ -133,7 +132,7 @@ public static function create($params) {
         ]
       );
     }
-
+    CRM_Contribute_BAO_Contribution::recordPaymentActivity($params['contribution_id'], CRM_Utils_Array::value('participant_id', $params), $params['total_amount'], $trxn->currency, $trxn->trxn_date);
     return $trxn;
   }
 
diff --git a/tests/phpunit/api/v3/PaymentTest.php b/tests/phpunit/api/v3/PaymentTest.php
index 56fb75cad21..5b3104cbe34 100644
--- a/tests/phpunit/api/v3/PaymentTest.php
+++ b/tests/phpunit/api/v3/PaymentTest.php
@@ -633,7 +633,9 @@ public function testCreatePaymentPayLater() {
   }
 
   /**
-   * Test create payment api for paylater contribution with partial payment.
+   * Test create payment api for pay later contribution with partial payment.
+   *
+   * @throws \Exception
    */
   public function testCreatePaymentPayLaterPartialPayment() {
     $this->createLoggedInUser();
@@ -717,7 +719,7 @@ public function testCreatePaymentPayLaterPartialPayment() {
       'id' => $contribution['id'],
     ]);
     $this->callAPISuccess('OptionValue', 'get', ['name' => 'Completed', 'option_group_id' => 'contribution_status', 'api.OptionValue.create' => ['label' => 'Completed']]);
-
+    $this->callAPISuccessGetCount('Activity', ['target_contact_id' => $this->_individualId, 'activity_type_id' => 'Payment'], 2);
   }
 
   /**