diff --git a/engine/orchestration/src/org/apache/cloudstack/engine/orchestration/VolumeOrchestrator.java b/engine/orchestration/src/org/apache/cloudstack/engine/orchestration/VolumeOrchestrator.java
index 4b9d7efe2ad..901e8a1ac02 100644
--- a/engine/orchestration/src/org/apache/cloudstack/engine/orchestration/VolumeOrchestrator.java
+++ b/engine/orchestration/src/org/apache/cloudstack/engine/orchestration/VolumeOrchestrator.java
@@ -1464,6 +1464,7 @@ public class VolumeOrchestrator extends ManagerBase implements VolumeOrchestrati
             } else {
                 volService.destroyVolume(volume.getId());
             }
+            // FIXME - All this is boiler plate code and should be done as part of state transition. This shouldn't be part of orchestrator.
             // publish usage event for the volume
             UsageEventUtils.publishUsageEvent(EventTypes.EVENT_VOLUME_DELETE, volume.getAccountId(), volume.getDataCenterId(), volume.getId(), volume.getName(),
                     Volume.class.getName(), volume.getUuid(), volume.isDisplayVolume());
diff --git a/server/src/com/cloud/vm/UserVmManagerImpl.java b/server/src/com/cloud/vm/UserVmManagerImpl.java
index 5a3b885d08d..b9ed37eb77a 100755
--- a/server/src/com/cloud/vm/UserVmManagerImpl.java
+++ b/server/src/com/cloud/vm/UserVmManagerImpl.java
@@ -4812,7 +4812,10 @@ public class UserVmManagerImpl extends ManagerBase implements UserVmManager, Vir
                 newVol = volumeMgr.allocateDuplicateVolume(root, null);
             }
 
-            // Create Usage event for the newly created volume
+            // 1. Save usage event and update resource count for user vm volumes
+            _resourceLimitMgr.incrementResourceCount(newVol.getAccountId(), ResourceType.volume, newVol.isDisplay());
+            _resourceLimitMgr.incrementResourceCount(newVol.getAccountId(), ResourceType.primary_storage, newVol.isDisplay(), new Long(newVol.getSize()));
+            // 2. Create Usage event for the newly created volume
             UsageEventVO usageEvent = new UsageEventVO(EventTypes.EVENT_VOLUME_CREATE, newVol.getAccountId(), newVol.getDataCenterId(), newVol.getId(), newVol.getName(), newVol.getDiskOfferingId(), template.getId(), newVol.getSize());
             _usageEventDao.persist(usageEvent);