diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index c049052d89ae9..a7dd3b80ba40e 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -11355,25 +11355,28 @@ function isReportOutstanding(
     reportNameValuePairs: OnyxCollection<ReportNameValuePairs> = allReportNameValuePair,
     allowSubmitted = true,
 ): boolean {
-    if (!iouReport || isEmptyObject(iouReport)) {
+    if (
+        !iouReport ||
+        isEmptyObject(iouReport) ||
+        !isExpenseReport(iouReport) ||
+        iouReport?.stateNum === undefined ||
+        iouReport?.statusNum === undefined ||
+        iouReport?.policyID !== policyID ||
+        hasForwardedAction(iouReport.reportID)
+    ) {
+        return false;
+    }
+    const reportNameValuePair = reportNameValuePairs?.[`${ONYXKEYS.COLLECTION.REPORT_NAME_VALUE_PAIRS}${iouReport.reportID}`];
+    if (isArchivedReport(reportNameValuePair)) {
         return false;
     }
     const currentRoute = navigationRef.getCurrentRoute();
     const params = currentRoute?.params as MoneyRequestNavigatorParamList[typeof SCREENS.MONEY_REQUEST.STEP_CONFIRMATION] | ReportsSplitNavigatorParamList[typeof SCREENS.REPORT];
     const activeReport = allReports?.[`${ONYXKEYS.COLLECTION.REPORT}${params?.reportID}`];
-    const policy = allPolicies?.[`${ONYXKEYS.COLLECTION.POLICY}${policyID}`];
-    const reportNameValuePair = reportNameValuePairs?.[`${ONYXKEYS.COLLECTION.REPORT_NAME_VALUE_PAIRS}${iouReport.reportID}`];
-    const shouldAllowSubmittedReport = allowSubmitted || isInstantSubmitEnabled(policy) || isProcessingReport(activeReport);
-    return (
-        isExpenseReport(iouReport) &&
-        iouReport?.stateNum !== undefined &&
-        iouReport?.statusNum !== undefined &&
-        iouReport?.policyID === policyID &&
-        (shouldAllowSubmittedReport ? iouReport?.stateNum <= CONST.REPORT.STATE_NUM.SUBMITTED : iouReport?.stateNum < CONST.REPORT.STATE_NUM.SUBMITTED) &&
-        (shouldAllowSubmittedReport ? iouReport?.statusNum <= CONST.REPORT.STATE_NUM.SUBMITTED : iouReport?.statusNum < CONST.REPORT.STATE_NUM.SUBMITTED) &&
-        !hasForwardedAction(iouReport.reportID) &&
-        !isArchivedReport(reportNameValuePair)
-    );
+    if (allowSubmitted || isProcessingReport(activeReport) || canAddTransaction(iouReport, false, false)) {
+        return iouReport.stateNum <= CONST.REPORT.STATE_NUM.SUBMITTED && iouReport.statusNum <= CONST.REPORT.STATE_NUM.SUBMITTED;
+    }
+    return iouReport.stateNum < CONST.REPORT.STATE_NUM.SUBMITTED && iouReport.statusNum < CONST.REPORT.STATE_NUM.SUBMITTED;
 }
 
 /**