diff --git a/content/automate/ManageIQ/Service/Generic/StateMachines/GenericLifecycle.class/__methods__/update_status.rb b/content/automate/ManageIQ/Service/Generic/StateMachines/GenericLifecycle.class/__methods__/update_status.rb
index 8e9a3f023..bcdf79c72 100644
--- a/content/automate/ManageIQ/Service/Generic/StateMachines/GenericLifecycle.class/__methods__/update_status.rb
+++ b/content/automate/ManageIQ/Service/Generic/StateMachines/GenericLifecycle.class/__methods__/update_status.rb
@@ -46,10 +46,11 @@ def service_action
                 end
               end
 
-              def update_status(service)
-                # Get status from input field status
-                status = @handle.inputs['status']
+              def error
+                @handle.root['ae_result'] == "error"
+              end
 
+              def updated_message(service, status)
                 updated_message = "Server [#{@handle.root['miq_server'].name}] "
                 updated_message += "Service [#{service.name}] #{service_action} "
                 updated_message += "Step [#{@handle.root['ae_state']}] "
@@ -57,13 +58,22 @@ def update_status(service)
                 updated_message += "Current Retry Number [#{@handle.root['ae_state_retries']}]"\
                                     if @handle.root['ae_result'] == 'retry'
                 @handle.log(:info, "Status message: #{updated_message} ")
-                update_task(updated_message, status)
+                updated_message
+              end
 
-                if @handle.root['ae_result'] == "error"
-                  @handle.create_notification(:level   => "error",
-                                              :subject => service,
-                                              :message => "Generic Service Error: #{updated_message}")
-                end
+              def error_handling(service, message)
+                @handle.create_notification(:level   => "error",
+                                            :subject => service,
+                                            :message => "Generic Service Error: #{message}")
+                service.on_error(service_action)
+              end
+
+              def update_status(service)
+                # Get status from input field status
+                status = @handle.inputs['status']
+                message = updated_message(service, status)
+                update_task(message, status)
+                error_handling(service, message) if error
               end
             end
           end
diff --git a/spec/content/automate/ManageIQ/Service/Generic/StateMachines/GenericLifecycle.class/__methods__/update_status_spec.rb b/spec/content/automate/ManageIQ/Service/Generic/StateMachines/GenericLifecycle.class/__methods__/update_status_spec.rb
index fbd324c19..334783046 100644
--- a/spec/content/automate/ManageIQ/Service/Generic/StateMachines/GenericLifecycle.class/__methods__/update_status_spec.rb
+++ b/spec/content/automate/ManageIQ/Service/Generic/StateMachines/GenericLifecycle.class/__methods__/update_status_spec.rb
@@ -10,15 +10,17 @@
   let(:svc_task) { MiqAeMethodService::MiqAeServiceServiceTemplateProvisionTask.find(task.id) }
   let(:svc_service) { MiqAeMethodService::MiqAeServiceServiceAnsibleTower.find(service_ansible_tower.id) }
   let(:root_object) do
-    Spec::Support::MiqAeMockObject.new('service'        => svc_service,
-                                       'service_action' => 'Provision',
-                                       'miq_server'     => svc_model_miq_server)
+    Spec::Support::MiqAeMockObject.new('service'                         => service_object,
+                                       'service_action'                  => service_action,
+                                       'service_template_provision_task' => svc_task,
+                                       'miq_server'                      => svc_model_miq_server)
   end
   let(:ae_service) { Spec::Support::MiqAeMockService.new(root_object) }
-  let(:errormsg) { "simple error" }
   let(:svc_model_request) { MiqAeMethodService::MiqAeServiceServiceTemplateProvisionRequest.find(request.id) }
   let(:miq_server) { EvmSpecHelper.local_miq_server }
   let(:svc_model_miq_server) { MiqAeMethodService::MiqAeServiceMiqServer.find(miq_server.id) }
+  let(:service_action) { 'Provision' }
+  let(:service_object) { svc_service }
 
   shared_examples_for "update_status_error" do
     it "error" do
@@ -29,33 +31,30 @@
     end
   end
 
+  shared_examples_for "update_status_on_error" do
+    it "on_error" do
+      allow(svc_task).to receive(:destination).and_return(svc_service)
+      root_object['ae_result'] = 'error'
+      allow(ae_service).to receive(:create_notification)
+      allow(ae_service).to receive(:inputs) { {'status' => "fred"} }
+      expect(svc_service).to receive(:on_error).with(service_action)
+      described_class.new(ae_service).main
+    end
+  end
+
   context "invalid service_action" do
     let(:errormsg) { 'Invalid service_action' }
-    let(:root_object) do
-      Spec::Support::MiqAeMockObject.new('service'        => svc_service,
-                                         'service_action' => 'fred',
-                                         'miq_server'     => svc_model_miq_server)
-    end
+    let(:service_action) { 'fred' }
     it_behaves_like "update_status_error"
   end
 
   context "service not found" do
     let(:errormsg) { 'Service not found' }
-    let(:root_object) do
-      Spec::Support::MiqAeMockObject.new('service_template_provision_task' => task,
-                                         'service_action'                  => 'Provision',
-                                         'miq_server'                      => svc_model_miq_server)
-    end
+    let(:service_object) { nil }
     it_behaves_like "update_status_error"
   end
 
   context "update_status" do
-    let(:root_object) do
-      Spec::Support::MiqAeMockObject.new('service_template_provision_task' => task,
-                                         'service_action'                  => 'Provision',
-                                         'service'                         => svc_service,
-                                         'miq_server'                      => svc_model_miq_server)
-    end
     it "successful scenario" do
       allow(svc_task).to receive(:destination).and_return(svc_service)
       allow(svc_service).to receive(:update_status).and_return(nil)
@@ -65,6 +64,17 @@
 
       msg = "Server [#{miq_server.name}] Service [#{svc_service.name}] Provision Step [] Status [fred] "
       expect(svc_model_request.reload.message).to eq(msg)
+      expect(svc_service).not_to receive(:on_error)
     end
   end
+
+  context "on_error provisioning" do
+    let(:service_action) { 'Provision' }
+    it_behaves_like "update_status_on_error"
+  end
+
+  context "on_error retirement" do
+    let(:service_action) { 'Retirement' }
+    it_behaves_like "update_status_on_error"
+  end
 end