diff --git a/src/libs/ReportUtils.js b/src/libs/ReportUtils.js
index 880cd776c3dc..567234fb8bd7 100644
--- a/src/libs/ReportUtils.js
+++ b/src/libs/ReportUtils.js
@@ -1853,7 +1853,7 @@ function getIOUReportActionMessage(type, total, comment, currency, paymentType =
  * @param {String} currency
  * @param {String} comment - User comment for the IOU.
  * @param {Array}  participants - An array with participants details.
- * @param {String} transactionID
+ * @param {String} [transactionID] - Not required if the IOUReportAction type is 'pay'
  * @param {String} [paymentType] - Only required if the IOUReportAction type is 'pay'. Can be oneOf(elsewhere, payPal, Expensify).
  * @param {String} [iouReportID] - Only required if the IOUReportActions type is oneOf(decline, cancel, pay). Generates a randomID as default.
  * @param {Boolean} [isSettlingUp] - Whether we are settling up an IOU.
@@ -1867,7 +1867,7 @@ function buildOptimisticIOUReportAction(
     currency,
     comment,
     participants,
-    transactionID,
+    transactionID = '',
     paymentType = '',
     iouReportID = '',
     isSettlingUp = false,
@@ -1885,13 +1885,21 @@ function buildOptimisticIOUReportAction(
         type,
     };
 
-    // We store amount, comment, currency in IOUDetails when type = pay
-    if (type === CONST.IOU.REPORT_ACTION_TYPE.PAY && isSendMoneyFlow) {
-        _.each(['amount', 'comment', 'currency'], (key) => {
-            delete originalMessage[key];
-        });
-        originalMessage.IOUDetails = {amount, comment, currency};
-        originalMessage.paymentType = paymentType;
+    if (type === CONST.IOU.REPORT_ACTION_TYPE.PAY) {
+        // In send money flow, we store amount, comment, currency in IOUDetails when type = pay
+        if (isSendMoneyFlow) {
+            _.each(['amount', 'comment', 'currency'], (key) => {
+                delete originalMessage[key];
+            });
+            originalMessage.IOUDetails = {amount, comment, currency};
+            originalMessage.paymentType = paymentType;
+        } else {
+            // In case of pay money request action, we dont store the comment
+            // and there is no single transctionID to link the action to.
+            delete originalMessage.IOUTransactionID;
+            delete originalMessage.comment;
+            originalMessage.paymentType = paymentType;
+        }
     }
 
     // IOUs of type split only exist in group DMs and those don't have an iouReport so we need to delete the IOUReportID key
diff --git a/src/libs/actions/IOU.js b/src/libs/actions/IOU.js
index b15a897bb4aa..37870d4feddc 100644
--- a/src/libs/actions/IOU.js
+++ b/src/libs/actions/IOU.js
@@ -364,7 +364,16 @@ function requestMoney(report, amount, currency, payeeEmail, payeeAccountID, part
         receiptObject.source = receipt.source;
         receiptObject.state = CONST.IOU.RECEIPT_STATE.SCANREADY;
     }
-    const optimisticTransaction = TransactionUtils.buildOptimisticTransaction(amount, currency, iouReport.reportID, comment, '', '', undefined, receiptObject);
+    const optimisticTransaction = TransactionUtils.buildOptimisticTransaction(
+        ReportUtils.isExpenseReport(iouReport) ? -amount : amount,
+        currency,
+        iouReport.reportID,
+        comment,
+        '',
+        '',
+        undefined,
+        receiptObject,
+    );
 
     // STEP 4: Build optimistic reportActions. We need:
     // 1. CREATED action for the chatReport
@@ -630,7 +639,7 @@ function createSplitsAndOnyxData(participants, currentUserLogin, currentUserAcco
 
         // STEP 3: Build optimistic transaction
         const oneOnOneTransaction = TransactionUtils.buildOptimisticTransaction(
-            splitAmount,
+            ReportUtils.isExpenseReport(oneOnOneIOUReport) ? -splitAmount : splitAmount,
             currency,
             oneOnOneIOUReport.reportID,
             comment,
@@ -1323,14 +1332,13 @@ function getSendMoneyParams(report, amount, currency, comment, paymentMethodType
  * @returns {Object}
  */
 function getPayMoneyRequestParams(chatReport, iouReport, recipient, paymentMethodType) {
-    const optimisticTransaction = TransactionUtils.buildOptimisticTransaction(iouReport.total, iouReport.currency, iouReport.reportID);
     const optimisticIOUReportAction = ReportUtils.buildOptimisticIOUReportAction(
         CONST.IOU.REPORT_ACTION_TYPE.PAY,
         iouReport.total,
         iouReport.currency,
         '',
         [recipient],
-        optimisticTransaction.transactionID,
+        '',
         paymentMethodType,
         iouReport.reportID,
         true,
@@ -1380,11 +1388,6 @@ function getPayMoneyRequestParams(chatReport, iouReport, recipient, paymentMetho
                 stateNum: CONST.REPORT.STATE_NUM.SUBMITTED,
             },
         },
-        {
-            onyxMethod: Onyx.METHOD.SET,
-            key: `${ONYXKEYS.COLLECTION.TRANSACTION}${optimisticTransaction.transactionID}`,
-            value: optimisticTransaction,
-        },
         {
             onyxMethod: Onyx.METHOD.MERGE,
             key: ONYXKEYS.NVP_LAST_PAYMENT_METHOD,
@@ -1402,13 +1405,6 @@ function getPayMoneyRequestParams(chatReport, iouReport, recipient, paymentMetho
                 },
             },
         },
-        {
-            onyxMethod: Onyx.METHOD.MERGE,
-            key: `${ONYXKEYS.COLLECTION.TRANSACTION}${optimisticTransaction.transactionID}`,
-            value: {
-                pendingAction: null,
-            },
-        },
     ];
 
     const failureData = [
@@ -1430,13 +1426,6 @@ function getPayMoneyRequestParams(chatReport, iouReport, recipient, paymentMetho
                 },
             },
         },
-        {
-            onyxMethod: Onyx.METHOD.MERGE,
-            key: `${ONYXKEYS.COLLECTION.TRANSACTION}${optimisticTransaction.transactionID}`,
-            value: {
-                errors: ErrorUtils.getMicroSecondOnyxError('iou.error.genericCreateFailureMessage'),
-            },
-        },
     ];
 
     return {