diff --git a/azurerm/internal/services/postgres/postgresql_server_resource.go b/azurerm/internal/services/postgres/postgresql_server_resource.go
index ab13b78f9a85e..a1f5397934e97 100644
--- a/azurerm/internal/services/postgres/postgresql_server_resource.go
+++ b/azurerm/internal/services/postgres/postgresql_server_resource.go
@@ -585,15 +585,12 @@ func resourcePostgreSQLServerUpdate(d *schema.ResourceData, meta interface{}) er
 		return fmt.Errorf("parsing Postgres Server ID : %v", err)
 	}
 
-	// Locks for scaling of replica functionality
+	// Locks for upscaling of replicas
 	mode := postgresql.CreateMode(d.Get("create_mode").(string))
-	source := d.Get("creation_source_server_id").(string)
-
 	primaryID := id.String()
 	if mode == postgresql.CreateModeReplica {
-		primaryID = source
+		primaryID = d.Get("creation_source_server_id").(string)
 	}
-
 	locks.ByID(primaryID)
 	defer locks.UnlockByID(primaryID)
 
@@ -602,6 +599,33 @@ func resourcePostgreSQLServerUpdate(d *schema.ResourceData, meta interface{}) er
 		return fmt.Errorf("expanding `sku_name` for PostgreSQL Server %s (Resource Group %q): %v", id.Name, id.ResourceGroup, err)
 	}
 
+	if d.HasChange("sku_name") && mode != postgresql.CreateModeReplica {
+		oldRaw, newRaw := d.GetChange("sku_name")
+		old := oldRaw.(string)
+		new := newRaw.(string)
+
+		if indexOfSku(old) < indexOfSku(new) {
+			listReplicas, err := replicasClient.ListByServer(ctx, id.ResourceGroup, id.Name)
+			if err != nil {
+				return fmt.Errorf("request error for list of replicas for PostgreSQL Server %q (Resource Group %q): %+v", id.Name, id.ResourceGroup, err)
+			}
+
+			propertiesReplica := postgresql.ServerUpdateParameters{
+				Sku: sku,
+			}
+			for _, replica := range *listReplicas.Value {
+				future, err := client.Update(ctx, id.ResourceGroup, *replica.Name, propertiesReplica)
+				if err != nil {
+					return fmt.Errorf("upscaling PostgreSQL Server Replica %q (Resource Group %q): %+v", *replica.Name, id.ResourceGroup, err)
+				}
+
+				if err = future.WaitForCompletionRef(ctx, client.Client); err != nil {
+					return fmt.Errorf("waiting for update of PostgreSQL Server Replica %q (Resource Group %q): %+v", id.Name, id.ResourceGroup, err)
+				}
+			}
+		}
+	}
+
 	publicAccess := postgresql.PublicNetworkAccessEnumEnabled
 	if v := d.Get("public_network_access_enabled"); !v.(bool) {
 		publicAccess = postgresql.PublicNetworkAccessEnumDisabled
@@ -628,33 +652,6 @@ func resourcePostgreSQLServerUpdate(d *schema.ResourceData, meta interface{}) er
 		Tags: tags.Expand(d.Get("tags").(map[string]interface{})),
 	}
 
-	if d.HasChange("sku_name") && mode != postgresql.CreateModeReplica {
-		oldRaw, newRaw := d.GetChange("sku_name")
-		old := oldRaw.(string)
-		new := newRaw.(string)
-
-		if indexOfSku(old) < indexOfSku(new) {
-			propertiesReplica := postgresql.ServerUpdateParameters{
-				Sku: sku,
-			}
-
-			listReplicas, err := replicasClient.ListByServer(ctx, id.ResourceGroup, id.Name)
-			if err != nil {
-				return fmt.Errorf("request error for list of replicas for PostgreSQL Server %q (Resource Group %q): %+v", id.Name, id.ResourceGroup, err)
-			}
-			for _, replica := range *listReplicas.Value {
-				future, err := client.Update(ctx, id.ResourceGroup, *replica.Name, propertiesReplica)
-				if err != nil {
-					return fmt.Errorf("updating PostgreSQL Server Replica %q (Resource Group %q): %+v", *replica.Name, id.ResourceGroup, err)
-				}
-
-				if err = future.WaitForCompletionRef(ctx, client.Client); err != nil {
-					return fmt.Errorf("waiting for update of PostgreSQL Server Replica %q (Resource Group %q): %+v", id.Name, id.ResourceGroup, err)
-				}
-			}
-		}
-	}
-
 	future, err := client.Update(ctx, id.ResourceGroup, id.Name, properties)
 	if err != nil {
 		return fmt.Errorf("updating PostgreSQL Server %q (Resource Group %q): %+v", id.Name, id.ResourceGroup, err)
diff --git a/azurerm/internal/services/postgres/postgresql_server_resource_test.go b/azurerm/internal/services/postgres/postgresql_server_resource_test.go
index d0b6298488495..62fa0d30851bf 100644
--- a/azurerm/internal/services/postgres/postgresql_server_resource_test.go
+++ b/azurerm/internal/services/postgres/postgresql_server_resource_test.go
@@ -326,7 +326,7 @@ func TestAccPostgreSQLServer_scaleReplica(t *testing.T) {
 	r := PostgreSQLServerResource{}
 	data.ResourceTest(t, r, []resource.TestStep{
 		{
-			Config: r.scaleableReplica(data, "11", "GP_Gen5_2"),
+			Config: r.scaleableReplica(data, "GP_Gen5_2", "11"),
 			Check: resource.ComposeTestCheckFunc(
 				check.That(data.ResourceName).ExistsInAzure(r),
 				check.That(data.ResourceName).Key("sku_name").HasValue("GP_Gen5_2"),
@@ -336,7 +336,7 @@ func TestAccPostgreSQLServer_scaleReplica(t *testing.T) {
 		},
 		data.ImportStep("administrator_login_password"),
 		{
-			Config: r.scaleableReplica(data, "11", "GP_Gen5_4"),
+			Config: r.scaleableReplica(data, "GP_Gen5_4", "11"),
 			Check: resource.ComposeTestCheckFunc(
 				check.That(data.ResourceName).ExistsInAzure(r),
 				check.That(data.ResourceName).Key("sku_name").HasValue("GP_Gen5_4"),
@@ -346,7 +346,7 @@ func TestAccPostgreSQLServer_scaleReplica(t *testing.T) {
 		},
 		data.ImportStep("administrator_login_password"),
 		{
-			Config: r.scaleableReplica(data, "11", "GP_Gen5_2"),
+			Config: r.scaleableReplica(data, "GP_Gen5_2", "11"),
 			Check: resource.ComposeTestCheckFunc(
 				check.That(data.ResourceName).ExistsInAzure(r),
 				check.That(data.ResourceName).Key("sku_name").HasValue("GP_Gen5_2"),
@@ -890,7 +890,7 @@ resource "azurerm_postgresql_server" "test" {
 `, data.RandomInteger, data.Locations.Primary, version, tlsVersion)
 }
 
-func (r PostgreSQLServerResource) scaleableReplica(data acceptance.TestData, version string, sku string) string {
+func (r PostgreSQLServerResource) scaleableReplica(data acceptance.TestData, sku string, version string) string {
 	return fmt.Sprintf(`
 %[1]s
 
@@ -899,13 +899,13 @@ resource "azurerm_postgresql_server" "replica" {
   location            = azurerm_resource_group.test.location
   resource_group_name = azurerm_resource_group.test.name
 
-  version  = "%[3]s"
-  sku_name = "%[4]s"
+  sku_name = "%[3]s"
+  version  = "%[4]s"
 
   create_mode               = "Replica"
   creation_source_server_id = azurerm_postgresql_server.test.id
 
   ssl_enforcement_enabled = true
 }
-`, r.template(data, sku, version), data.RandomInteger, version, sku)
+`, r.template(data, sku, version), data.RandomInteger, sku, version)
 }