diff --git a/components/org.wso2.carbon.identity.api.server.idp/org.wso2.carbon.identity.api.server.idp.v1/src/main/java/org/wso2/carbon/identity/api/server/idp/v1/core/ServerIdpManagementService.java b/components/org.wso2.carbon.identity.api.server.idp/org.wso2.carbon.identity.api.server.idp.v1/src/main/java/org/wso2/carbon/identity/api/server/idp/v1/core/ServerIdpManagementService.java
index 282fc34c9d..c64ace027e 100644
--- a/components/org.wso2.carbon.identity.api.server.idp/org.wso2.carbon.identity.api.server.idp.v1/src/main/java/org/wso2/carbon/identity/api/server/idp/v1/core/ServerIdpManagementService.java
+++ b/components/org.wso2.carbon.identity.api.server.idp/org.wso2.carbon.identity.api.server.idp.v1/src/main/java/org/wso2/carbon/identity/api/server/idp/v1/core/ServerIdpManagementService.java
@@ -1772,16 +1772,7 @@ private void updateFederatedAuthenticatorConfig(IdentityProvider idp, FederatedA
                 authConfig.setName(base64URLDecode(authenticator.getAuthenticatorId()));
                 authConfig.setDisplayName(getDisplayNameOfAuthenticator(authConfig.getName()));
                 authConfig.setEnabled(authenticator.getIsEnabled());
-                /* Resolve definedBy type: If there is authenticator by same name and its type is system: SYSTEM.
-                 If not: USER. */
-                FederatedAuthenticatorConfig authenticatorConfig = ApplicationAuthenticatorService.getInstance()
-                        .getFederatedAuthenticatorByName(authenticator.getAuthenticatorId());
-                if (authenticatorConfig != null &&
-                        DefinedByType.SYSTEM.equals(authenticatorConfig.getDefinedByType())) {
-                    authConfig.setDefinedByType(DefinedByType.SYSTEM);
-                } else {
-                    authConfig.setDefinedByType(DefinedByType.USER);
-                }
+                authConfig.setDefinedByType(resolveDefinedByType(authenticator.getAuthenticatorId()));
                 List<org.wso2.carbon.identity.api.server.idp.v1.model.Property> authProperties =
                         authenticator.getProperties();
                 if (IdentityApplicationConstants.Authenticator.SAML2SSO.FED_AUTH_NAME.equals(authConfig.getName())) {
@@ -2851,15 +2842,7 @@ private FederatedAuthenticatorConfig createFederatedAuthenticatorConfig(String f
         authConfig.setName(authenticatorName);
         authConfig.setDisplayName(getDisplayNameOfAuthenticator(authenticatorName));
         authConfig.setEnabled(authenticator.getIsEnabled());
-        // Resolve definedBy type: If there is authenticator by same name and its type is system: SYSTEM. If not: USER.
-        FederatedAuthenticatorConfig authenticatorConfig = ApplicationAuthenticatorService.getInstance()
-                .getFederatedAuthenticatorByName(authenticatorName);
-        if (authenticatorConfig != null &&
-                DefinedByType.SYSTEM.equals(authenticatorConfig.getDefinedByType())) {
-            authConfig.setDefinedByType(DefinedByType.SYSTEM);
-        } else {
-            authConfig.setDefinedByType(DefinedByType.USER);
-        }
+        authConfig.setDefinedByType(resolveDefinedByType(authenticatorName));
         List<org.wso2.carbon.identity.api.server.idp.v1.model.Property> authProperties = authenticator.getProperties();
         if (IdentityApplicationConstants.Authenticator.SAML2SSO.FED_AUTH_NAME.equals(authenticatorName)) {
             validateSamlMetadata(authProperties);
@@ -2873,6 +2856,18 @@ private FederatedAuthenticatorConfig createFederatedAuthenticatorConfig(String f
         return authConfig;
     }
 
+    private DefinedByType resolveDefinedByType(String authenticatorName) {
+
+        // Resolve definedBy type: If there is authenticator by same name and its type is system: SYSTEM. If not: USER.
+        FederatedAuthenticatorConfig authenticatorConfig = ApplicationAuthenticatorService.getInstance()
+                .getFederatedAuthenticatorByName(authenticatorName);
+        if (authenticatorConfig != null &&
+                DefinedByType.SYSTEM.equals(authenticatorConfig.getDefinedByType())) {
+            return DefinedByType.SYSTEM;
+        }
+        return DefinedByType.USER;
+    }
+
     /**
      * Verify if scopes have not been set in both Scopes field and Additional Query Parameters field
      *