diff --git a/src/pages/iou/request/IOURequestStartPage.tsx b/src/pages/iou/request/IOURequestStartPage.tsx
index e2b267e9bd5a5..738bbbcea5b4c 100644
--- a/src/pages/iou/request/IOURequestStartPage.tsx
+++ b/src/pages/iou/request/IOURequestStartPage.tsx
@@ -70,17 +70,6 @@ function IOURequestStartPage({
     const isFromGlobalCreate = isEmptyObject(report?.reportID);
     const prevTransactionReportID = usePrevious(transaction?.reportID);
 
-    // Clear out the temporary expense if the reportID in the URL has changed from the transaction's reportID.
-    useFocusEffect(
-        useCallback(() => {
-            // The test transaction can change the reportID of the transaction on the flow so we should prevent the reportID from being reverted again.
-            if (transaction?.reportID === reportID || isLoadingSelectedTab || prevTransactionReportID !== transaction?.reportID) {
-                return;
-            }
-            initMoneyRequest(reportID, policy, isFromGlobalCreate, transaction?.iouRequestType, transactionRequestType);
-        }, [transaction, policy, reportID, isFromGlobalCreate, transactionRequestType, isLoadingSelectedTab, prevTransactionReportID]),
-    );
-
     useEffect(() => {
         Performance.markEnd(CONST.TIMING.OPEN_CREATE_EXPENSE);
     }, []);
@@ -99,6 +88,16 @@ function IOURequestStartPage({
         [policy, reportID, isFromGlobalCreate, transaction],
     );
 
+    useFocusEffect(
+        useCallback(() => {
+            // The test transaction can change the reportID of the transaction on the flow so we should prevent the reportID from being reverted again.
+            if (isLoadingSelectedTab || prevTransactionReportID !== transaction?.reportID) {
+                return;
+            }
+            resetIOUTypeIfChanged(transactionRequestType);
+        }, [transaction?.reportID, resetIOUTypeIfChanged, transactionRequestType, isLoadingSelectedTab, prevTransactionReportID]),
+    );
+
     const [headerWithBackBtnContainerElement, setHeaderWithBackButtonContainerElement] = useState<HTMLElement | null>(null);
     const [tabBarContainerElement, setTabBarContainerElement] = useState<HTMLElement | null>(null);
     const [activeTabContainerElement, setActiveTabContainerElement] = useState<HTMLElement | null>(null);