diff --git a/modules/ppcp-paypal-subscriptions/src/RenewalHandler.php b/modules/ppcp-paypal-subscriptions/src/RenewalHandler.php
index 1261f418e..898a81c57 100644
--- a/modules/ppcp-paypal-subscriptions/src/RenewalHandler.php
+++ b/modules/ppcp-paypal-subscriptions/src/RenewalHandler.php
@@ -48,8 +48,7 @@ class RenewalHandler {
 	 */
 	public function process( array $subscriptions, string $transaction_id ): void {
 		foreach ( $subscriptions as $subscription ) {
-			$is_renewal = $subscription->get_meta( '_ppcp_is_subscription_renewal' ) ?? '';
-			if ( $is_renewal ) {
+			if ( $this->is_renewal( $subscription ) ) {
 				$renewal_order = wcs_create_renewal_order( $subscription );
 				if ( is_a( $renewal_order, WC_Order::class ) ) {
 					$renewal_order->set_payment_method( $subscription->get_payment_method() );
@@ -67,4 +66,19 @@ class RenewalHandler {
 			}
 		}
 	}
+
+	/**
+	 * Checks whether subscription order is for renewal or not.
+	 *
+	 * @param WC_Subscription $subscription WC Subscription.
+	 * @return bool
+	 */
+	private function is_renewal( WC_Subscription $subscription ): bool {
+		$subscription_renewal_meta = $subscription->get_meta( '_ppcp_is_subscription_renewal' ) ?? '';
+		if ( $subscription_renewal_meta === 'true' ) {
+			return true;
+		}
+
+		return false;
+	}
 }
diff --git a/tests/e2e/PHPUnit/PayPalSubscriptionsRenewalTest.php b/tests/e2e/PHPUnit/PayPalSubscriptionsRenewalTest.php
index f67b6be55..f951aadc2 100644
--- a/tests/e2e/PHPUnit/PayPalSubscriptionsRenewalTest.php
+++ b/tests/e2e/PHPUnit/PayPalSubscriptionsRenewalTest.php
@@ -2,34 +2,16 @@
 
 namespace WooCommerce\PayPalCommerce\Tests\E2e;
 
-use WC_Subscriptions_Product;
 use WooCommerce\PayPalCommerce\PayPalSubscriptions\RenewalHandler;
 
 class PayPalSubscriptionsRenewalTest extends TestCase
 {
-	public function test_process()
+	public function test_is_renewal_by_meta()
 	{
 		$c = $this->getContainer();
 		$handler = new RenewalHandler($c->get('woocommerce.logger.woocommerce'));
 
-		$order = wc_create_order();
-		$order->set_customer_id( 1 );
-		$order->save();
-
-		$subscription = wcs_create_subscription(
-			array(
-				'order_id'         => $order->get_id(),
-				'status'           => 'active',
-				'billing_period'   => WC_Subscriptions_Product::get_period( $_ENV['PAYPAL_SUBSCRIPTIONS_PRODUCT_ID'] ),
-				'billing_interval' => WC_Subscriptions_Product::get_interval( $_ENV['PAYPAL_SUBSCRIPTIONS_PRODUCT_ID'] ),
-				'customer_id'      => $order->get_customer_id(),
-			)
-		);
-
-		$parent = $subscription->get_related_orders( 'ids', array( 'parent' ) );
-		$this->assertEquals(count($parent), 1);
-		$renewal = $subscription->get_related_orders( 'ids', array( 'renewal' ) );
-		$this->assertEquals(count($renewal), 0);
+		$subscription = $this->createSubscription();
 
 		$handler->process([$subscription], 'TRANSACTION-ID');
 		$renewal = $subscription->get_related_orders( 'ids', array( 'renewal' ) );
@@ -39,4 +21,21 @@ class PayPalSubscriptionsRenewalTest extends TestCase
 		$renewal = $subscription->get_related_orders( 'ids', array( 'renewal' ) );
 		$this->assertEquals(count($renewal), 1);
 	}
+
+	private function createSubscription()
+	{
+		$order = wc_create_order();
+		$order->set_customer_id(1);
+		$order->save();
+
+		return wcs_create_subscription(
+			array(
+				'order_id' => $order->get_id(),
+				'status' => 'active',
+				'billing_period' => 'day',
+				'billing_interval' => '1',
+				'customer_id' => $order->get_customer_id(),
+			)
+		);
+	}
 }