diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 0f996fbe8c029..e3be413699ef1 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -8915,6 +8915,7 @@ function getPayMoneyRequestParams(
                 lastVisibleActionCreated: optimisticIOUReportAction.created,
                 hasOutstandingChildRequest: false,
                 statusNum: CONST.REPORT.STATUS_NUM.REIMBURSED,
+                stateNum: CONST.REPORT.STATE_NUM.APPROVED,
                 pendingFields: {
                     preview: CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE,
                     reimbursed: CONST.RED_BRICK_ROAD_PENDING_ACTION.UPDATE,
diff --git a/tests/actions/IOUTest.ts b/tests/actions/IOUTest.ts
index 44e392cca16f6..54ba4651ebbf5 100644
--- a/tests/actions/IOUTest.ts
+++ b/tests/actions/IOUTest.ts
@@ -2697,7 +2697,7 @@ describe('actions/IOU', () => {
                                             lastMessageHtml: `paid $${amount / 100}.00 with Expensify`,
                                             lastMessageText: `paid $${amount / 100}.00 with Expensify`,
                                             statusNum: CONST.REPORT.STATUS_NUM.REIMBURSED,
-                                            stateNum: CONST.REPORT.STATE_NUM.SUBMITTED,
+                                            stateNum: CONST.REPORT.STATE_NUM.APPROVED,
                                         }),
                                     );
                                     expect(updatedChatReport).toEqual(