diff --git a/persistence-service-v1/persistence-service-processor-v1/src/main/java/com/iqser/red/service/persistence/management/v1/processor/service/EntityLogMergeService.java b/persistence-service-v1/persistence-service-processor-v1/src/main/java/com/iqser/red/service/persistence/management/v1/processor/service/EntityLogMergeService.java
index 305af4adf..415a4365a 100644
--- a/persistence-service-v1/persistence-service-processor-v1/src/main/java/com/iqser/red/service/persistence/management/v1/processor/service/EntityLogMergeService.java
+++ b/persistence-service-v1/persistence-service-processor-v1/src/main/java/com/iqser/red/service/persistence/management/v1/processor/service/EntityLogMergeService.java
@@ -388,20 +388,23 @@ public class EntityLogMergeService {
         }
 
         entityLogEntry.setEntryType(getEntryType(isHint, recategorization.getType()));
-
-        entityLogEntry.setState(isHint ? EntryState.SKIPPED : EntryState.APPLIED); // TODO: only set applied if legalBasis is set by recategorization
-
         entityLogEntry.getEngines().add(Engine.MANUAL);
 
         if (!Strings.isNullOrEmpty(recategorization.getLegalBasis())) {
             entityLogEntry.setLegalBasis(recategorization.getLegalBasis());
+            entityLogEntry.setState(isHint ? EntryState.SKIPPED : EntryState.APPLIED);
+        } else {
+            entityLogEntry.setState(EntryState.SKIPPED);
         }
+
         if (!Strings.isNullOrEmpty(recategorization.getSection())) {
             entityLogEntry.setSection(recategorization.getSection());
         }
+
         if (!Strings.isNullOrEmpty(recategorization.getValue())) {
             entityLogEntry.setValue(recategorization.getValue());
         }
+
         addChanges(entityLogEntry.getChanges(), ChangeType.CHANGED, analysisNumber, recategorization.getRequestDate());
         entityLogEntry.getManualChanges()
                 .add(ManualChange.builder()