diff --git a/package.json b/package.json
index 42bbef56f9d..4a87b83591e 100644
--- a/package.json
+++ b/package.json
@@ -46,7 +46,7 @@
     "test:debug": "TZ=utc NODE_OPTIONS='--inspect-brk --experimental-vm-modules' jest --runInBand",
     "perf-test": "NODE_OPTIONS=--experimental-vm-modules npx reassure",
     "typecheck": "NODE_OPTIONS=--max_old_space_size=8192 tsc",
-    "lint": "NODE_OPTIONS=--max_old_space_size=8192 eslint . --max-warnings=326 --cache --cache-location=node_modules/.cache/eslint",
+    "lint": "NODE_OPTIONS=--max_old_space_size=8192 eslint . --max-warnings=325 --cache --cache-location=node_modules/.cache/eslint",
     "lint-changed": "NODE_OPTIONS=--max_old_space_size=8192 ./scripts/lintChanged.sh",
     "lint-watch": "npx eslint-watch --watch --changed",
     "shellcheck": "./scripts/shellCheck.sh",
diff --git a/src/components/TestDrive/Modal/EmployeeTestDriveModal.tsx b/src/components/TestDrive/Modal/EmployeeTestDriveModal.tsx
index c93caf877b9..8faf31f2b5a 100644
--- a/src/components/TestDrive/Modal/EmployeeTestDriveModal.tsx
+++ b/src/components/TestDrive/Modal/EmployeeTestDriveModal.tsx
@@ -7,6 +7,7 @@ import TestReceipt from '@assets/images/fake-test-drive-employee-receipt.jpg';
 import TextInput from '@components/TextInput';
 import useLocalize from '@hooks/useLocalize';
 import useOnboardingMessages from '@hooks/useOnboardingMessages';
+import useOnyx from '@hooks/useOnyx';
 import {
     initMoneyRequest,
     setMoneyRequestAmount,
@@ -24,12 +25,16 @@ import type {TestDriveModalNavigatorParamList} from '@libs/Navigation/types';
 import {generateReportID} from '@libs/ReportUtils';
 import {generateAccountID} from '@libs/UserUtils';
 import CONST from '@src/CONST';
+import ONYXKEYS from '@src/ONYXKEYS';
 import ROUTES from '@src/ROUTES';
 import type SCREENS from '@src/SCREENS';
 import BaseTestDriveModal from './BaseTestDriveModal';
 
 function EmployeeTestDriveModal() {
     const {translate} = useLocalize();
+    const reportID = generateReportID();
+    const [report] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${reportID}`, {canBeMissing: true});
+    const [parentReport] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${report?.parentReportID}`, {canBeMissing: true});
     const route = useRoute<PlatformStackRouteProp<TestDriveModalNavigatorParamList, typeof SCREENS.TEST_DRIVE_MODAL.ROOT>>();
     const [bossEmail, setBossEmail] = useState(route.params?.bossEmail ?? '');
     const [formError, setFormError] = useState<string | undefined>();
@@ -57,11 +62,13 @@ function EmployeeTestDriveModal() {
                     'jpg',
                     (source, _, filename) => {
                         const transactionID = CONST.IOU.OPTIMISTIC_TRANSACTION_ID;
-                        const reportID = generateReportID();
+
                         initMoneyRequest({
                             reportID,
                             isFromGlobalCreate: false,
                             newIouRequestType: CONST.IOU.REQUEST_TYPE.SCAN,
+                            report,
+                            parentReport,
                         });
 
                         setMoneyRequestReceipt(transactionID, source, filename, true, CONST.TEST_RECEIPT.FILE_TYPE, false, true);
diff --git a/src/libs/PerDiemRequestUtils.ts b/src/libs/PerDiemRequestUtils.ts
index 8f47471b2b7..b25d8598cc0 100644
--- a/src/libs/PerDiemRequestUtils.ts
+++ b/src/libs/PerDiemRequestUtils.ts
@@ -1,9 +1,7 @@
 import {addDays, differenceInDays, differenceInMinutes, format, isSameDay, startOfDay} from 'date-fns';
 import lodashSortBy from 'lodash/sortBy';
-import type {OnyxCollection, OnyxEntry} from 'react-native-onyx';
-import Onyx from 'react-native-onyx';
+import type {OnyxEntry} from 'react-native-onyx';
 import CONST from '@src/CONST';
-import ONYXKEYS from '@src/ONYXKEYS';
 import type {Report, Transaction} from '@src/types/onyx';
 import type {CustomUnit, Rate} from '@src/types/onyx/Policy';
 import {translateLocal} from './Localize';
@@ -12,21 +10,10 @@ import {getPolicy} from './PolicyUtils';
 import {isPolicyExpenseChat} from './ReportUtils';
 import tokenizedSearch from './tokenizedSearch';
 
-let allReports: OnyxCollection<Report>;
-Onyx.connect({
-    key: ONYXKEYS.COLLECTION.REPORT,
-    waitForCollectionCallback: true,
-    callback: (value) => {
-        allReports = value;
-    },
-});
-
 /**
  * Returns custom unit ID for the per diem transaction
  */
-function getCustomUnitID(reportID: string) {
-    const report = allReports?.[`${ONYXKEYS.COLLECTION.REPORT}${reportID}`];
-    const parentReport = allReports?.[`${ONYXKEYS.COLLECTION.REPORT}${report?.parentReportID}`];
+function getCustomUnitID(report: OnyxEntry<Report>, parentReport: OnyxEntry<Report>) {
     // This will be fixed as part of https://github.com/Expensify/Expensify/issues/507850
     // eslint-disable-next-line deprecation/deprecation
     const policy = getPolicy(report?.policyID ?? parentReport?.policyID);
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 4a39b875e99..f5497b6c6c0 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -259,6 +259,8 @@ type InitMoneyRequestParams = {
     isFromGlobalCreate?: boolean;
     currentIouRequestType?: IOURequestType | undefined;
     newIouRequestType: IOURequestType;
+    report: OnyxEntry<OnyxTypes.Report>;
+    parentReport: OnyxEntry<OnyxTypes.Report>;
 };
 
 type MoneyRequestInformation = {
@@ -895,8 +897,10 @@ function getReportPreviewAction(chatReportID: string | undefined, iouReportID: s
  * @param policy
  * @param isFromGlobalCreate
  * @param iouRequestType one of manual/scan/distance
+ * @param report the report to attach the transaction to
+ * @param parentReport the parent report to attach the transaction to
  */
-function initMoneyRequest({reportID, policy, isFromGlobalCreate, currentIouRequestType, newIouRequestType}: InitMoneyRequestParams) {
+function initMoneyRequest({reportID, policy, isFromGlobalCreate, currentIouRequestType, newIouRequestType, report, parentReport}: InitMoneyRequestParams) {
     // Generate a brand new transactionID
     // This will be fixed as part of https://github.com/Expensify/Expensify/issues/507850
     // eslint-disable-next-line deprecation/deprecation
@@ -952,7 +956,7 @@ function initMoneyRequest({reportID, policy, isFromGlobalCreate, currentIouReque
             },
         };
         if (!isFromGlobalCreate) {
-            const {customUnitID, category} = getCustomUnitID(reportID);
+            const {customUnitID, category} = getCustomUnitID(report, parentReport);
             comment.customUnit = {...comment.customUnit, customUnitID};
             requestCategory = category ?? null;
         }
diff --git a/src/pages/Search/SearchPage.tsx b/src/pages/Search/SearchPage.tsx
index 875e1eade77..c27751b89c0 100644
--- a/src/pages/Search/SearchPage.tsx
+++ b/src/pages/Search/SearchPage.tsx
@@ -72,7 +72,9 @@ function SearchPage({route}: SearchPageProps) {
     const currentUserPersonalDetails = useCurrentUserPersonalDetails();
     const isMobileSelectionModeEnabled = useMobileSelectionMode();
     const [lastPaymentMethods] = useOnyx(ONYXKEYS.NVP_LAST_PAYMENT_METHOD, {canBeMissing: true});
-
+    const newReportID = generateReportID();
+    const [newReport] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${newReportID}`, {canBeMissing: true});
+    const [newParentReport] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${newReport?.parentReportID}`, {canBeMissing: true});
     const [activePolicyID] = useOnyx(ONYXKEYS.NVP_ACTIVE_POLICY_ID, {canBeMissing: false});
     const [activePolicy] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY}${activePolicyID}`, {canBeMissing: true});
 
@@ -392,11 +394,12 @@ function SearchPage({route}: SearchPageProps) {
     };
 
     const saveFileAndInitMoneyRequest = (files: FileObject[]) => {
-        const newReportID = generateReportID();
         const initialTransaction = initMoneyRequest({
             isFromGlobalCreate: true,
             reportID: newReportID,
             newIouRequestType: CONST.IOU.REQUEST_TYPE.SCAN,
+            report: newReport,
+            parentReport: newParentReport,
         });
 
         const newReceiptFiles: ReceiptFile[] = [];
diff --git a/src/pages/Share/SubmitDetailsPage.tsx b/src/pages/Share/SubmitDetailsPage.tsx
index b3814d41635..341d8590165 100644
--- a/src/pages/Share/SubmitDetailsPage.tsx
+++ b/src/pages/Share/SubmitDetailsPage.tsx
@@ -43,6 +43,7 @@ function SubmitDetailsPage({
     const [unknownUserDetails] = useOnyx(ONYXKEYS.SHARE_UNKNOWN_USER_DETAILS, {canBeMissing: true});
     const [personalDetails] = useOnyx(`${ONYXKEYS.PERSONAL_DETAILS_LIST}`, {canBeMissing: true});
     const report: OnyxEntry<ReportType> = getReportOrDraftReport(reportOrAccountID);
+    const [parentReport] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${report?.parentReportID}`, {canBeMissing: true});
     const [policy] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY}${report?.policyID}`, {canBeMissing: false});
     const [transaction] = useOnyx(`${ONYXKEYS.COLLECTION.TRANSACTION_DRAFT}${CONST.IOU.OPTIMISTIC_TRANSACTION_ID}`, {canBeMissing: true});
     const [policyCategories] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY_CATEGORIES}${getIOURequestPolicyID(transaction, report)}`, {canBeMissing: false});
@@ -69,8 +70,10 @@ function SubmitDetailsPage({
             policy,
             currentIouRequestType: CONST.IOU.REQUEST_TYPE.SCAN,
             newIouRequestType: CONST.IOU.REQUEST_TYPE.SCAN,
+            report,
+            parentReport,
         });
-    }, [reportOrAccountID, policy]);
+    }, [reportOrAccountID, policy, report, parentReport]);
 
     const selectedParticipants = unknownUserDetails ? [unknownUserDetails] : getMoneyRequestParticipantsFromReport(report);
     const participants = selectedParticipants.map((participant) =>
diff --git a/src/pages/home/report/ReportActionCompose/ReportActionCompose.tsx b/src/pages/home/report/ReportActionCompose/ReportActionCompose.tsx
index aae3713d743..5a6cc51e412 100644
--- a/src/pages/home/report/ReportActionCompose/ReportActionCompose.tsx
+++ b/src/pages/home/report/ReportActionCompose/ReportActionCompose.tsx
@@ -150,7 +150,7 @@ function ReportActionCompose({
     const [blockedFromConcierge] = useOnyx(ONYXKEYS.NVP_BLOCKED_FROM_CONCIERGE, {canBeMissing: true});
     const [shouldShowComposeInput = true] = useOnyx(ONYXKEYS.SHOULD_SHOW_COMPOSE_INPUT, {canBeMissing: true});
     const [policy] = useOnyx(`${ONYXKEYS.COLLECTION.POLICY}${report?.policyID}`, {canBeMissing: true});
-
+    const [newParentReport] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${report?.parentReportID}`, {canBeMissing: true});
     /**
      * Updates the Highlight state of the composer
      */
@@ -496,6 +496,8 @@ function ReportActionCompose({
             const initialTransaction = initMoneyRequest({
                 reportID,
                 newIouRequestType: CONST.IOU.REQUEST_TYPE.SCAN,
+                report,
+                parentReport: newParentReport,
             });
 
             files.forEach((file, index) => {
diff --git a/src/pages/iou/request/IOURequestStartPage.tsx b/src/pages/iou/request/IOURequestStartPage.tsx
index dbbd9cd5f86..446d8158325 100644
--- a/src/pages/iou/request/IOURequestStartPage.tsx
+++ b/src/pages/iou/request/IOURequestStartPage.tsx
@@ -56,6 +56,7 @@ function IOURequestStartPage({
     const shouldUseTab = iouType !== CONST.IOU.TYPE.SEND && iouType !== CONST.IOU.TYPE.PAY && iouType !== CONST.IOU.TYPE.INVOICE;
     const [isDraggingOver, setIsDraggingOver] = useState(false);
     const [report] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${reportID}`, {canBeMissing: true});
+    const [parentReport] = useOnyx(`${ONYXKEYS.COLLECTION.REPORT}${report?.parentReportID}`, {canBeMissing: true});
     const policy = usePolicy(report?.policyID);
     const [selectedTab, selectedTabResult] = useOnyx(`${ONYXKEYS.COLLECTION.SELECTED_TAB}${CONST.TAB.IOU_REQUEST_TYPE}`, {canBeMissing: true});
     const [session] = useOnyx(ONYXKEYS.SESSION, {canBeMissing: false});
@@ -126,9 +127,11 @@ function IOURequestStartPage({
                 isFromGlobalCreate,
                 currentIouRequestType: transaction?.iouRequestType,
                 newIouRequestType: newIOUType,
+                report,
+                parentReport,
             });
         },
-        [policy, reportID, isFromGlobalCreate, transaction],
+        [policy, reportID, isFromGlobalCreate, transaction, report, parentReport],
     );
 
     // Clear out the temporary expense if the reportID in the URL has changed from the transaction's reportID.
diff --git a/tests/actions/IOUTest.ts b/tests/actions/IOUTest.ts
index d1fdfdc7d28..8cf87fd8468 100644
--- a/tests/actions/IOUTest.ts
+++ b/tests/actions/IOUTest.ts
@@ -5668,6 +5668,14 @@ describe('actions/IOU', () => {
             type: CONST.POLICY.TYPE.TEAM,
             outputCurrency: 'USD',
         };
+
+        const fakeParentReport: Report = {
+            ...createRandomReport(1),
+            reportID: fakeReport.reportID,
+            type: CONST.REPORT.TYPE.EXPENSE,
+            policyID: '1',
+            managerID: CARLOS_ACCOUNT_ID,
+        };
         const fakePersonalPolicy: Policy = {
             ...createRandomPolicy(2),
             type: CONST.POLICY.TYPE.PERSONAL,
@@ -5715,6 +5723,8 @@ describe('actions/IOU', () => {
                         policy: fakePolicy,
                         isFromGlobalCreate: true,
                         newIouRequestType: CONST.IOU.REQUEST_TYPE.MANUAL,
+                        report: fakeReport,
+                        parentReport: fakeParentReport,
                     });
                 })
                 .then(async () => {
@@ -5731,6 +5741,8 @@ describe('actions/IOU', () => {
                         isFromGlobalCreate: true,
                         currentIouRequestType: CONST.IOU.REQUEST_TYPE.MANUAL,
                         newIouRequestType: CONST.IOU.REQUEST_TYPE.SCAN,
+                        report: fakeReport,
+                        parentReport: fakeParentReport,
                     });
                 })
                 .then(async () => {
@@ -5747,6 +5759,8 @@ describe('actions/IOU', () => {
                         reportID: fakeReport.reportID,
                         isFromGlobalCreate: true,
                         newIouRequestType: CONST.IOU.REQUEST_TYPE.MANUAL,
+                        report: fakeReport,
+                        parentReport: fakeParentReport,
                     });
                 })
                 .then(async () => {
diff --git a/tests/unit/PerDiemRequestUtilsTest.ts b/tests/unit/PerDiemRequestUtilsTest.ts
index a6d720f6512..e6d6b3f9413 100644
--- a/tests/unit/PerDiemRequestUtilsTest.ts
+++ b/tests/unit/PerDiemRequestUtilsTest.ts
@@ -1,8 +1,36 @@
+import Onyx from 'react-native-onyx';
 import type {DestinationTreeSection} from '@libs/PerDiemRequestUtils';
 import {getDestinationListSections} from '@libs/PerDiemRequestUtils';
+import CONST from '@src/CONST';
+import {getCustomUnitID} from '@src/libs/PerDiemRequestUtils';
+import ONYXKEYS from '@src/ONYXKEYS';
+import type {Policy, Report} from '@src/types/onyx';
 import type {Rate} from '@src/types/onyx/Policy';
+import {getFakePolicy, getFakeReport} from '../utils/LHNTestUtils';
+
+const policyID = '1';
+const report: Report = {
+    ...getFakeReport(),
+    policyID,
+    chatType: CONST.REPORT.CHAT_TYPE.POLICY_EXPENSE_CHAT,
+};
+
+const parentReport: Report = {
+    ...getFakeReport(),
+    policyID,
+};
 
 describe('PerDiemRequestUtils', () => {
+    beforeAll(() =>
+        Onyx.init({
+            keys: ONYXKEYS,
+        }),
+    );
+
+    beforeEach(() => {
+        Onyx.clear();
+    });
+
     it('getDestinationListSections()', () => {
         const tokenizeSearch = 'Antigua Barbuda';
 
@@ -48,4 +76,37 @@ describe('PerDiemRequestUtils', () => {
         });
         expect(tokenizeSearchResult).toStrictEqual(searchResultList);
     });
+
+    describe('getCustomUnitID', () => {
+        it('should return the correct custom unit ID', async () => {
+            const policy: Policy = {
+                ...getFakePolicy(),
+                id: policyID,
+                customUnits: {
+                    [CONST.CUSTOM_UNITS.DISTANCE_UNIT_KILOMETERS]: {
+                        name: CONST.CUSTOM_UNITS.NAME_PER_DIEM_INTERNATIONAL,
+                        customUnitID: CONST.CUSTOM_UNITS.DISTANCE_UNIT_KILOMETERS,
+                        rates: {},
+                    },
+                },
+            };
+
+            await Onyx.set(`${ONYXKEYS.COLLECTION.POLICY}${policyID}`, policy);
+
+            const customUnitID = getCustomUnitID(report, parentReport);
+            expect(customUnitID.customUnitID).toBe(CONST.CUSTOM_UNITS.DISTANCE_UNIT_KILOMETERS);
+        });
+
+        it('should return fake P2P ID if the policy does not have a custom unit', async () => {
+            const policy: Policy = {
+                ...getFakePolicy(),
+                customUnits: {},
+            };
+
+            await Onyx.set(`${ONYXKEYS.COLLECTION.POLICY}${policyID}`, policy);
+
+            const customUnitID = getCustomUnitID(report, parentReport);
+            expect(customUnitID.customUnitID).toBe(CONST.CUSTOM_UNITS.FAKE_P2P_ID);
+        });
+    });
 });