[Due for payment 2025-08-11] [$250] Tax is not set to default for distance expense

[nlemma]

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Version Number: v9.1.76-0
Reproducible in staging?: Yes
Reproducible in production?: Yes
If this was caught during regression testing, add the test name, ID and link from TestRail: https://github.com/Expensify/Expensify/issues/425342
Email or phone of affected tester (no customers): -
Issue reported by: Applause Internal Team
Device used: Windows 11 / Chrome
App Component: Other

Action Performed:

Precondition:

1. Create a workspace
2. Set the workspace default currency to USD if it is not already that
3. Go to "More features" and enable "Distance rates" and "Taxes"
4. Go to "Taxes" and define 3 tax rates:
   Tax USD40: 40%
   Tax other currency10: 10%
   Tax distance25: 25%
5. Still in "Taxes", click in "Settings" in the top and choose the following defaults (see screenshots #1):
6. Verify you end up with a configuration like this (screenshot #2):
7. Go "Distance rates" and enable "Track tax" in the top right settings
8. Create a distance rate, assign a tax rate to it and input some amount smaller than the rate in "Tax reclaimable on": (screenshot #3)

STR:

1. In the DM chat with yourself, click "+ > Track expense" and create a distance request
2. Wait for the concierge message with actions and click "Categorize it"
3. Choose any category from the list
4. The RHN should open with the workspace as the only alternative, select the workspace

Expected Result:

The tax code is set to the default tax code for the distance rate selected

Actual Result:

Tax field is empty. An error appears "Rate not valid for this workspace. Please select an available rate from the workspace."

Workaround:

Unknown

Platforms:

• Android: App
• Android: mWeb Chrome
• iOS: App
• iOS: mWeb Safari
• iOS: mWeb Chrome
• Windows: Chrome
• MacOS: Chrome / Safari
• MacOS: Desktop

Screenshots/Videos

Bug6878309_1751652467030.bandicam_2025-07-04_20-57-17-394.mp4

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• Last Price Increase: 2025-07-22
• Automatic offers:
• Krishna2323 | Contributor | 108156275

Issue Owner

Current Issue Owner: @dylanexpensify

[melvin-bot]

Triggered auto assignment to @dylanexpensify (Bug), see https://stackoverflow.com/c/expensify/questions/14418 for more details. Please add this bug to a GH project, as outlined in the SO.

[FitseTLT]

Proposal

Please re-state the problem that we are trying to solve in this issue.

Tax is not set to default for distance expense

What is the root cause of that problem?

We set the distance rate from the workspace if the rate matches with any rate the policy has

App/src/components/MoneyRequestConfirmationList.tsx

Lines 424 to 427 in 74e1436

	const matchingRate = Object.values(policyRates).find((policyRate) => policyRate.rate === mileageRate.rate && policyRate.unit === mileageRate.unit);
	if (matchingRate?.customUnitRateID) {
	setCustomUnitRateID(transactionID, matchingRate.customUnitRateID);
	return;

and in this case the workspace has no matching rate so error shows and tax also cannot be set.

What changes do you think we should make in order to solve the problem?

We can make the rate to be set to the only one rate the workspace has if the transaction has a rate that doesn't match with any of the existing rates

const matchingRate =
            Object.values(policyRates).find((policyRate) => policyRate.rate === mileageRate.rate && policyRate.unit === mileageRate.unit) ??
            (Object.values(policyRates).length === 1 ? Object.values(policyRates).at(0) : undefined);

We can alternatively also set it to the first rate even if the workspace has multiple rates.

What specific scenarios should we cover in automated tests to prevent reintroducing this issue in the future?

N / A

What alternative solutions did you explore? (Optional)

[Krishna2323]

Proposal

Please re-state the problem that we are trying to solve in this issue.

Tax is not set to default for distance expense

What is the root cause of that problem?

• When a matching rate is not found, we set the error without setting default rate for P2P distance requests.
  

  App/src/components/MoneyRequestConfirmationList.tsx

  Lines 423 to 432 in 3f03a21

  	// If there is a distance rate in the policy that matches the rate and unit of the currently selected mileage rate, select it automatically
  	const matchingRate = Object.values(policyRates).find((policyRate) => policyRate.rate === mileageRate.rate && policyRate.unit === mileageRate.unit);
  	if (matchingRate?.customUnitRateID) {
  	setCustomUnitRateID(transactionID, matchingRate.customUnitRateID);
  	return;
  	}
  	// If none of the above conditions are met, display the rate error
  	setFormError(errorKey);
  	}, [isDistanceRequest, isPolicyExpenseChat, transactionID, mileageRate, customUnitRateID, policy, isMovingTransactionFromTrackExpense, setFormError, clearFormErrors]);

What changes do you think we should make in order to solve the problem?

• We should first check if the custom unit rate id is the default one for P2P distance requests using isCustomUnitRateIDForP2P.
• Then we should use DistanceRequestUtils.getDefaultMileageRate(policy) to get the default policy rate for the workspace and set custom unit rate id.

        // If there is a distance rate in the policy that matches the rate and unit of the currently selected mileage rate, select it automatically
        const matchingRate = Object.values(policyRates).find((policyRate) => policyRate.rate === mileageRate.rate && policyRate.unit === mileageRate.unit);
        if (matchingRate?.customUnitRateID) {
            setCustomUnitRateID(transactionID, matchingRate.customUnitRateID);
            return;
        }

        if (isCustomUnitRateIDForP2P(transaction) && DistanceRequestUtils.getDefaultMileageRate(policy)) {
            const defaultMileageRatePolicy = DistanceRequestUtils.getDefaultMileageRate(policy);
            setCustomUnitRateID(transactionID, defaultMileageRatePolicy?.customUnitRateID);
            return;
        }

        // If none of the above conditions are met, display the rate error
        setFormError(errorKey);

What specific scenarios should we cover in automated tests to prevent reintroducing this issue in the future?

N/A

What alternative solutions did you explore? (Optional)

Result

[kpadmanabhan]

Proposal

Please re-state the problem that we are trying to solve in this issue.

Tax not set to default for distance expense

What is the root cause of that problem?

When there id no matching rate found against the policy rate or if the units differ, we cannot set the tax rate for P2P distance requests and hence we set the form error. Hence the error text is displayed. This is the current code logic.

App/src/components/MoneyRequestConfirmationList.tsx

Lines 423 to 432 in 74e1436

	// If there is a distance rate in the policy that matches the rate and unit of the currently selected mileage rate, select it automatically
	const matchingRate = Object.values(policyRates).find((policyRate) => policyRate.rate === mileageRate.rate && policyRate.unit === mileageRate.unit);
	if (matchingRate?.customUnitRateID) {
	setCustomUnitRateID(transactionID, matchingRate.customUnitRateID);
	return;
	}
	// If none of the above conditions are met, display the rate error
	setFormError(errorKey);
	}, [isDistanceRequest, isPolicyExpenseChat, transactionID, mileageRate, customUnitRateID, policy, isMovingTransactionFromTrackExpense, setFormError, clearFormErrors]);

What changes do you think we should make in order to solve the problem?

• If there is no matching rate found, then get the default policy rate for workspace and set custom unit rate.
• Keep the unit check as is in the code
• However it should be made sure that this matches with business requirements for taxes of P2P distance expenses.

What specific scenarios should we cover in automated tests to prevent reintroducing this issue in the future?

• Add unit tests with non-matching units
• Add unit tests with no mtaching rates
• Add an e2e test for the entire flow testing various combinations

What alternative solutions did you explore? (Optional)

N/A

[melvin-bot]

@dylanexpensify Whoops! This issue is 2 days overdue. Let's get this updated quick!

[dylanexpensify]

reviewing

[melvin-bot]

@dylanexpensify Huh... This is 4 days overdue. Who can take care of this?