diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 8582e9e3f3de9..61957434c2504 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -4560,8 +4560,9 @@ function canApproveIOU(iouReport: OnyxEntry<OnyxTypes.Report> | EmptyObject, cha
     const isOpenExpenseReport = isPolicyExpenseChat && ReportUtils.isOpenExpenseReport(iouReport);
     const isApproved = ReportUtils.isReportApproved(iouReport);
     const iouSettled = ReportUtils.isSettled(iouReport?.reportID);
+    const isArchivedReport = ReportUtils.isArchivedRoom(iouReport);
 
-    return isCurrentUserManager && !isOpenExpenseReport && !isApproved && !iouSettled;
+    return isCurrentUserManager && !isOpenExpenseReport && !isApproved && !iouSettled && !isArchivedReport;
 }
 
 function canIOUBePaid(iouReport: OnyxEntry<OnyxTypes.Report> | EmptyObject, chatReport: OnyxEntry<OnyxTypes.Report> | EmptyObject, policy: OnyxEntry<OnyxTypes.Policy> | EmptyObject) {
@@ -4719,35 +4720,48 @@ function submitReport(expenseReport: OnyxTypes.Report) {
     const policy = ReportUtils.getPolicy(expenseReport.policyID);
     const isCurrentUserManager = currentUserPersonalDetails.accountID === expenseReport.managerID;
     const optimisticNextStep = NextStepUtils.buildNextStep(expenseReport, CONST.REPORT.STATUS_NUM.SUBMITTED);
+    const isSubmitAndClosePolicy = PolicyUtils.isSubmitAndClose(policy);
 
-    const optimisticData: OnyxUpdate[] = [
-        {
-            onyxMethod: Onyx.METHOD.MERGE,
-            key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${expenseReport.reportID}`,
-            value: {
-                [optimisticSubmittedReportAction.reportActionID]: {
-                    ...(optimisticSubmittedReportAction as OnyxTypes.ReportAction),
-                    pendingAction: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
-                },
-            },
-        },
-        {
-            onyxMethod: Onyx.METHOD.MERGE,
-            key: `${ONYXKEYS.COLLECTION.REPORT}${expenseReport.reportID}`,
-            value: {
-                ...expenseReport,
-                lastMessageText: optimisticSubmittedReportAction.message?.[0].text ?? '',
-                lastMessageHtml: optimisticSubmittedReportAction.message?.[0].html ?? '',
-                stateNum: CONST.REPORT.STATE_NUM.SUBMITTED,
-                statusNum: CONST.REPORT.STATUS_NUM.SUBMITTED,
-            },
-        },
-        {
-            onyxMethod: Onyx.METHOD.MERGE,
-            key: `${ONYXKEYS.COLLECTION.NEXT_STEP}${expenseReport.reportID}`,
-            value: optimisticNextStep,
-        },
-    ];
+    const optimisticData: OnyxUpdate[] = !isSubmitAndClosePolicy
+        ? [
+              {
+                  onyxMethod: Onyx.METHOD.MERGE,
+                  key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${expenseReport.reportID}`,
+                  value: {
+                      [optimisticSubmittedReportAction.reportActionID]: {
+                          ...(optimisticSubmittedReportAction as OnyxTypes.ReportAction),
+                          pendingAction: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+                      },
+                  },
+              },
+              {
+                  onyxMethod: Onyx.METHOD.MERGE,
+                  key: `${ONYXKEYS.COLLECTION.REPORT}${expenseReport.reportID}`,
+                  value: {
+                      ...expenseReport,
+                      lastMessageText: optimisticSubmittedReportAction.message?.[0].text ?? '',
+                      lastMessageHtml: optimisticSubmittedReportAction.message?.[0].html ?? '',
+                      stateNum: CONST.REPORT.STATE_NUM.SUBMITTED,
+                      statusNum: CONST.REPORT.STATUS_NUM.SUBMITTED,
+                  },
+              },
+              {
+                  onyxMethod: Onyx.METHOD.MERGE,
+                  key: `${ONYXKEYS.COLLECTION.NEXT_STEP}${expenseReport.reportID}`,
+                  value: optimisticNextStep,
+              },
+          ]
+        : [
+              {
+                  onyxMethod: Onyx.METHOD.MERGE,
+                  key: `${ONYXKEYS.COLLECTION.REPORT}${expenseReport.reportID}`,
+                  value: {
+                      ...expenseReport,
+                      stateNum: CONST.REPORT.STATE_NUM.APPROVED,
+                      statusNum: CONST.REPORT.STATUS_NUM.CLOSED,
+                  },
+              },
+          ];
 
     if (parentReport?.reportID) {
         optimisticData.push({
@@ -4762,8 +4776,9 @@ function submitReport(expenseReport: OnyxTypes.Report) {
         });
     }
 
-    const successData: OnyxUpdate[] = [
-        {
+    const successData: OnyxUpdate[] = [];
+    if (!isSubmitAndClosePolicy) {
+        successData.push({
             onyxMethod: Onyx.METHOD.MERGE,
             key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${expenseReport.reportID}`,
             value: {
@@ -4771,19 +4786,10 @@ function submitReport(expenseReport: OnyxTypes.Report) {
                     pendingAction: null,
                 },
             },
-        },
-    ];
+        });
+    }
 
     const failureData: OnyxUpdate[] = [
-        {
-            onyxMethod: Onyx.METHOD.MERGE,
-            key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${expenseReport.reportID}`,
-            value: {
-                [optimisticSubmittedReportAction.reportActionID]: {
-                    errors: ErrorUtils.getMicroSecondOnyxError('iou.error.other'),
-                },
-            },
-        },
         {
             onyxMethod: Onyx.METHOD.MERGE,
             key: `${ONYXKEYS.COLLECTION.REPORT}${expenseReport.reportID}`,
@@ -4792,12 +4798,25 @@ function submitReport(expenseReport: OnyxTypes.Report) {
                 stateNum: CONST.REPORT.STATE_NUM.OPEN,
             },
         },
-        {
-            onyxMethod: Onyx.METHOD.MERGE,
-            key: `${ONYXKEYS.COLLECTION.NEXT_STEP}${expenseReport.reportID}`,
-            value: currentNextStep,
-        },
     ];
+    if (!isSubmitAndClosePolicy) {
+        failureData.push(
+            {
+                onyxMethod: Onyx.METHOD.MERGE,
+                key: `${ONYXKEYS.COLLECTION.REPORT_ACTIONS}${expenseReport.reportID}`,
+                value: {
+                    [optimisticSubmittedReportAction.reportActionID]: {
+                        errors: ErrorUtils.getMicroSecondOnyxError('iou.error.other'),
+                    },
+                },
+            },
+            {
+                onyxMethod: Onyx.METHOD.MERGE,
+                key: `${ONYXKEYS.COLLECTION.NEXT_STEP}${expenseReport.reportID}`,
+                value: currentNextStep,
+            },
+        );
+    }
 
     if (parentReport?.reportID) {
         failureData.push({