diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index f0d06064ff38..5c4b2886a32e 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -4229,6 +4229,17 @@ function canEditFieldOfMoneyRequest(reportAction: OnyxInputOrEntry<ReportAction>
     if (fieldToEdit === CONST.EDIT_REQUEST_FIELD.REPORT) {
         // Unreported transaction from OldDot can have the reportID as an empty string
         const isUnreportedExpense = !transaction?.reportID || transaction?.reportID === CONST.REPORT.UNREPORTED_REPORT_ID;
+
+        if (isInvoiceReport(moneyRequestReport) && !isUnreportedExpense) {
+            return (
+                getOutstandingReportsForUser(
+                    moneyRequestReport?.policyID,
+                    moneyRequestReport?.ownerAccountID,
+                    reportsByPolicyID?.[moneyRequestReport?.policyID ?? CONST.DEFAULT_NUMBER_ID] ?? {},
+                ).length > 0
+            );
+        }
+
         return isUnreportedExpense
             ? Object.values(allPolicies ?? {}).flatMap((currentPolicy) =>
                   getOutstandingReportsForUser(currentPolicy?.id, currentUserAccountID, reportsByPolicyID?.[currentPolicy?.id ?? CONST.DEFAULT_NUMBER_ID] ?? {}),
diff --git a/tests/unit/ReportUtilsTest.ts b/tests/unit/ReportUtilsTest.ts
index 1afbddde788e..d1af7ba17922 100644
--- a/tests/unit/ReportUtilsTest.ts
+++ b/tests/unit/ReportUtilsTest.ts
@@ -22,6 +22,7 @@ import {
     canAddTransaction,
     canDeleteReportAction,
     canDeleteTransaction,
+    canEditFieldOfMoneyRequest,
     canEditReportDescription,
     canEditRoomVisibility,
     canEditWriteCapability,
@@ -295,6 +296,71 @@ describe('ReportUtils', () => {
     });
     beforeEach(() => IntlStore.load(CONST.LOCALES.DEFAULT).then(waitForBatchedUpdates));
 
+    describe('canEditFieldOfMoneyRequest', () => {
+        const reportActionID = 2;
+        const IOUReportID = '1234';
+        const IOUTransactionID = '123';
+        const randomReportAction = createRandomReportAction(reportActionID);
+        const policyID = '2424';
+        const amount = 39;
+
+        const policy1 = {...createRandomPolicy(Number(policyID), CONST.POLICY.TYPE.TEAM), areInvoicesEnabled: true, role: CONST.POLICY.ROLE.ADMIN};
+
+        // Given that there is at least one outstanding expense report in a policy
+        const outstandingExpenseReport = {
+            ...createExpenseReport(483),
+            policyID,
+            stateNum: CONST.REPORT.STATE_NUM.OPEN,
+            statusNum: CONST.REPORT.STATUS_NUM.OPEN,
+            ownerAccountID: currentUserAccountID,
+        };
+
+        // When a user creates an invoice in the same policy
+
+        const reportAction = {
+            ...randomReportAction,
+            actionName: CONST.REPORT.ACTIONS.TYPE.IOU,
+            actorAccountID: currentUserAccountID,
+            childStateNum: CONST.REPORT.STATE_NUM.OPEN,
+            childStatusNum: CONST.REPORT.STATUS_NUM.OPEN,
+            originalMessage: {
+                // eslint-disable-next-line deprecation/deprecation
+                ...randomReportAction.originalMessage,
+                IOUReportID,
+                IOUTransactionID,
+                type: CONST.IOU.ACTION.CREATE,
+                amount,
+                currency: CONST.CURRENCY.USD,
+            },
+        };
+
+        const moneyRequestTransaction = {...createRandomTransaction(Number(IOUTransactionID)), reportID: IOUReportID, transactionID: IOUTransactionID, amount};
+
+        const invoiceReport = {
+            ...createInvoiceReport(Number(IOUReportID)),
+            policyID,
+            ownerAccountID: currentUserAccountID,
+            state: CONST.REPORT.ACTIONS.TYPE.SUBMITTED,
+            stateNum: CONST.REPORT.STATE_NUM.SUBMITTED,
+            statusNum: CONST.REPORT.STATUS_NUM.SUBMITTED,
+            managerID: 8723,
+        };
+
+        beforeAll(() => {
+            Onyx.merge(`${ONYXKEYS.COLLECTION.TRANSACTION}${IOUTransactionID}`, moneyRequestTransaction);
+            Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT}${IOUReportID}`, invoiceReport);
+            Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT}${483}`, outstandingExpenseReport);
+            Onyx.merge(`${ONYXKEYS.COLLECTION.POLICY}${policyID}`, policy1);
+            return waitForBatchedUpdates();
+        });
+
+        // Then the user should be able to move the invoice to the outstanding expense report
+        it('should return true for invoice report action given that there is a minimum of one outstanding report', () => {
+            const canEditReportField = canEditFieldOfMoneyRequest(reportAction, CONST.EDIT_REQUEST_FIELD.REPORT);
+            expect(canEditReportField).toBe(true);
+        });
+    });
+
     describe('prepareOnboardingOnyxData', () => {
         it('provides test drive url to task title', () => {
             const title = jest.fn();