diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index c0c90143a67a..26f19ceb8f95 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -439,6 +439,10 @@ type AncestorIDs = {
 
 type MissingPaymentMethod = 'bankAccount' | 'wallet';
 
+type OutstandingChildRequest = {
+    hasOutstandingChildRequest?: boolean;
+};
+
 let currentUserEmail: string | undefined;
 let currentUserPrivateDomain: string | undefined;
 let currentUserAccountID: number | undefined;
@@ -5706,6 +5710,32 @@ function hasActionsWithErrors(reportID: string): boolean {
     return Object.values(reportActions ?? {}).some((action) => !isEmptyObject(action.errors));
 }
 
+/**
+ * @returns the object to update `report.hasOutstandingChildRequest`
+ */
+function getOutstandingChildRequest(iouReport: OnyxEntry<Report> | EmptyObject): OutstandingChildRequest {
+    if (!iouReport || isEmptyObject(iouReport)) {
+        return {};
+    }
+
+    if (!isExpenseReport(iouReport)) {
+        return {
+            hasOutstandingChildRequest: iouReport.managerID === currentUserAccountID && iouReport.total !== 0,
+        };
+    }
+
+    const policy = getPolicy(iouReport.policyID);
+    const shouldBeManuallySubmitted = PolicyUtils.isPaidGroupPolicy(policy) && !policy?.harvesting?.enabled;
+    if (shouldBeManuallySubmitted || PolicyUtils.isPolicyAdmin(policy)) {
+        return {
+            hasOutstandingChildRequest: true,
+        };
+    }
+
+    // We don't need to update hasOutstandingChildRequest in this case
+    return {};
+}
+
 export {
     getReportParticipantsTitle,
     isReportMessageAttachment,
@@ -5931,6 +5961,7 @@ export {
     isTrackExpenseReport,
     hasActionsWithErrors,
     getGroupChatName,
+    getOutstandingChildRequest,
 };
 
 export type {
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 5c92cd87a2bc..f145819f50c4 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -127,10 +127,6 @@ type SendMoneyParamsData = {
     failureData: OnyxUpdate[];
 };
 
-type OutstandingChildRequest = {
-    hasOutstandingChildRequest?: boolean;
-};
-
 let betas: OnyxTypes.Beta[] = [];
 Onyx.connect({
     key: ONYXKEYS.BETAS,
@@ -450,41 +446,6 @@ function getReceiptError(receipt?: Receipt, filename?: string, isScanRequest = t
         : ErrorUtils.getMicroSecondOnyxErrorObject({error: CONST.IOU.RECEIPT_ERROR, source: receipt.source?.toString() ?? '', filename: filename ?? ''}, errorKey);
 }
 
-function needsToBeManuallySubmitted(iouReport: OnyxTypes.Report) {
-    const isPolicyExpenseChat = ReportUtils.isExpenseReport(iouReport);
-
-    if (isPolicyExpenseChat) {
-        const policy = getPolicy(iouReport.policyID);
-        const isFromPaidPolicy = PolicyUtils.isPaidGroupPolicy(policy);
-
-        // If the scheduled submit is turned off on the policy, user needs to manually submit the report which is indicated by GBR in LHN
-        return isFromPaidPolicy && !policy.harvesting?.enabled;
-    }
-
-    return true;
-}
-
-/**
- * Return the object to update hasOutstandingChildRequest
- */
-function getOutstandingChildRequest(policy: OnyxEntry<OnyxTypes.Policy> | EmptyObject, iouReport: OnyxTypes.Report): OutstandingChildRequest {
-    if (!needsToBeManuallySubmitted(iouReport)) {
-        return {
-            hasOutstandingChildRequest: false,
-        };
-    }
-
-    if (PolicyUtils.isPolicyAdmin(policy)) {
-        return {
-            hasOutstandingChildRequest: true,
-        };
-    }
-
-    return {
-        hasOutstandingChildRequest: iouReport.managerID === userAccountID && iouReport.total !== 0,
-    };
-}
-
 /** Builds the Onyx data for a money request */
 function buildOnyxDataForMoneyRequest(
     chatReport: OnyxEntry<OnyxTypes.Report>,
@@ -508,7 +469,7 @@ function buildOnyxDataForMoneyRequest(
     isOneOnOneSplit = false,
 ): [OnyxUpdate[], OnyxUpdate[], OnyxUpdate[]] {
     const isScanRequest = TransactionUtils.isScanRequest(transaction);
-    const outstandingChildRequest = getOutstandingChildRequest(policy ?? {}, iouReport);
+    const outstandingChildRequest = ReportUtils.getOutstandingChildRequest(iouReport);
     const clearedPendingFields = Object.fromEntries(Object.keys(transaction.pendingFields ?? {}).map((key) => [key, null]));
     const optimisticData: OnyxUpdate[] = [];
     let newQuickAction: ValueOf<typeof CONST.QUICK_ACTIONS> = isScanRequest ? CONST.QUICK_ACTIONS.REQUEST_SCAN : CONST.QUICK_ACTIONS.REQUEST_MANUAL;
@@ -1581,17 +1542,21 @@ function getUpdateMoneyRequestParams(
     }
 
     // Step 4: Compute the IOU total and update the report preview message (and report header) so LHN amount owed is correct.
-    let updatedMoneyRequestReport = {...iouReport};
     const diff = calculateDiffAmount(iouReport, updatedTransaction, transaction);
 
-    if (ReportUtils.isExpenseReport(iouReport) && typeof updatedMoneyRequestReport.total === 'number') {
-        // For expense report, the amount is negative so we should subtract total from diff
-        updatedMoneyRequestReport.total -= diff;
+    let updatedMoneyRequestReport: OnyxTypes.Report | EmptyObject;
+    if (!iouReport) {
+        updatedMoneyRequestReport = {};
+    } else if (ReportUtils.isExpenseReport(iouReport) && typeof iouReport.total === 'number') {
+        // For expense report, the amount is negative, so we should subtract total from diff
+        updatedMoneyRequestReport = {
+            ...iouReport,
+            total: iouReport.total - diff,
+        };
     } else {
-        updatedMoneyRequestReport = iouReport
-            ? IOUUtils.updateIOUOwnerAndTotal(iouReport, updatedReportAction.actorAccountID ?? -1, diff, TransactionUtils.getCurrency(transaction), false, true)
-            : {};
+        updatedMoneyRequestReport = IOUUtils.updateIOUOwnerAndTotal(iouReport, updatedReportAction.actorAccountID ?? -1, diff, TransactionUtils.getCurrency(transaction), false, true);
     }
+
     updatedMoneyRequestReport.cachedTotal = CurrencyUtils.convertToDisplayString(updatedMoneyRequestReport.total, transactionDetails?.currency);
 
     optimisticData.push(
@@ -1603,10 +1568,7 @@ function getUpdateMoneyRequestParams(
         {
             onyxMethod: Onyx.METHOD.MERGE,
             key: `${ONYXKEYS.COLLECTION.REPORT}${iouReport?.parentReportID}`,
-            value: {
-                hasOutstandingChildRequest:
-                    iouReport && needsToBeManuallySubmitted(iouReport) && updatedMoneyRequestReport.managerID === userAccountID && updatedMoneyRequestReport.total !== 0,
-            },
+            value: ReportUtils.getOutstandingChildRequest(updatedMoneyRequestReport),
         },
     );
     successData.push({
@@ -3790,9 +3752,7 @@ function deleteMoneyRequest(transactionID: string, reportAction: OnyxTypes.Repor
         {
             onyxMethod: Onyx.METHOD.MERGE,
             key: `${ONYXKEYS.COLLECTION.REPORT}${chatReport?.reportID}`,
-            value: {
-                hasOutstandingChildRequest: iouReport && needsToBeManuallySubmitted(iouReport) && updatedIOUReport?.managerID === userAccountID && updatedIOUReport.total !== 0,
-            },
+            value: ReportUtils.getOutstandingChildRequest(updatedIOUReport),
         },
     );