diff --git a/CRM/Contribute/Form/AdditionalPayment.php b/CRM/Contribute/Form/AdditionalPayment.php
index fdb7c478f3a9..10219870fc62 100644
--- a/CRM/Contribute/Form/AdditionalPayment.php
+++ b/CRM/Contribute/Form/AdditionalPayment.php
@@ -342,20 +342,6 @@ public function submit($submittedValues) {
     if ($this->_component == 'event') {
       $participantId = $this->_id;
     }
-    $contributionStatuses = CRM_Core_PseudoConstant::get('CRM_Contribute_DAO_Contribution',
-      'contribution_status_id',
-      ['labelColumn' => 'name']
-    );
-    $contributionStatusID = CRM_Core_DAO::getFieldValue('CRM_Contribute_DAO_Contribution', $this->_contributionId, 'contribution_status_id');
-    if ($contributionStatuses[$contributionStatusID] == 'Pending') {
-      civicrm_api3('Contribution', 'create',
-        [
-          'id' => $this->_contributionId,
-          'contribution_status_id' => array_search('Partially paid', $contributionStatuses),
-          'is_pay_later' => 0,
-        ]
-      );
-    }
 
     if ($this->_mode) {
       // process credit card
diff --git a/CRM/Financial/BAO/Payment.php b/CRM/Financial/BAO/Payment.php
index 0854915d035a..ccc65c2dd832 100644
--- a/CRM/Financial/BAO/Payment.php
+++ b/CRM/Financial/BAO/Payment.php
@@ -171,12 +171,7 @@ public static function create($params) {
       }
     }
     elseif ($contributionStatus === 'Pending') {
-      civicrm_api3('Contribution', 'create',
-        [
-          'id' => $contribution['id'],
-          'contribution_status_id' => 'Partially paid',
-        ]
-      );
+      self::updateContributionStatus($contribution['id'], 'Partially Paid');
     }
     CRM_Contribute_BAO_Contribution::recordPaymentActivity($params['contribution_id'], CRM_Utils_Array::value('participant_id', $params), $params['total_amount'], $trxn->currency, $trxn->trxn_date);
     return $trxn;
@@ -534,4 +529,24 @@ protected static function isPaymentCompletesContribution($contributionID, $payme
     return ($cmp == 0 || $cmp == 1);
   }
 
+  /**
+   * Update the status of the contribution.
+   *
+   * We pass the is_post_payment_create as we have already created the line items
+   *
+   * @param int $contributionID
+   * @param string $status
+   *
+   * @throws \CiviCRM_API3_Exception
+   */
+  private static function updateContributionStatus(int $contributionID, string $status) {
+    civicrm_api3('Contribution', 'create',
+      [
+        'id' => $contributionID,
+        'is_post_payment_create' => TRUE,
+        'contribution_status_id' => $status,
+      ]
+    );
+  }
+
 }
diff --git a/tests/phpunit/api/v3/PaymentTest.php b/tests/phpunit/api/v3/PaymentTest.php
index 09895d9acb7b..e00dcab64f20 100644
--- a/tests/phpunit/api/v3/PaymentTest.php
+++ b/tests/phpunit/api/v3/PaymentTest.php
@@ -670,7 +670,28 @@ public function testCreatePaymentPayLater() {
   /**
    * Test create payment api for pay later contribution with partial payment.
    *
-   * @throws \Exception
+   * https://lab.civicrm.org/dev/financial/issues/69
+   */
+  public function testCreatePaymentIncompletePaymentPartialPayment() {
+    $contributionParams = [
+      'total_amount' => 100,
+      'currency' => 'USD',
+      'contact_id' => $this->_individualId,
+      'financial_type_id' => 1,
+      'contribution_status_id' => 2,
+    ];
+    $contribution = $this->callAPISuccess('Contribution', 'create', $contributionParams);
+    $this->callAPISuccess('Payment', 'create', [
+      'contribution_id' => $contribution['id'],
+      'total_amount' => 50,
+      'payment_instrument_id' => 'Cash',
+    ]);
+    $payments = $this->callAPISuccess('Payment', 'get', ['contribution_id' => $contribution['id']])['values'];
+    $this->assertCount(1, $payments);
+  }
+
+  /**
+   * Test create payment api for pay later contribution with partial payment.
    */
   public function testCreatePaymentPayLaterPartialPayment() {
     $this->createLoggedInUser();