diff --git a/src/pages/AddExistingExpense.tsx b/src/pages/AddExistingExpense.tsx
index eaea425e21f5..127ad502b551 100644
--- a/src/pages/AddExistingExpense.tsx
+++ b/src/pages/AddExistingExpense.tsx
@@ -99,8 +99,13 @@ function AddExistingExpense({route}: AddExistingExpensePageType) {
             if (!transactions) {
                 return [];
             }
+            const isIOU = isIOUReport(report);
             return Object.values(transactions || {}).filter((item) => {
                 const isUnreported = isUnreportedTransaction(item);
+                if (isIOU && !isUnreported) {
+                    return false;
+                }
+
                 const isOnOpenExpenseReport = !!(item?.reportID && (allOpenReports?.[item.reportID] ?? openReportDrafts?.[item.reportID]));
                 if (!isUnreported && !isOnOpenExpenseReport) {
                     return false;
@@ -121,13 +126,13 @@ function AddExistingExpense({route}: AddExistingExpensePageType) {
 
                 const transactionAmount = getTransactionDetails(item)?.amount ?? 0;
 
-                // Negative values are not allowed for unreported expenses
-                if (transactionAmount < 0) {
+                // Only block negative amounts for unreported expenses.
+                if (transactionAmount < 0 && isUnreported) {
                     return false;
                 }
 
                 // Zero amount expenses are not allowed in IOU reports
-                if (isIOUReport(report) && transactionAmount === 0) {
+                if (isIOU && transactionAmount === 0) {
                     return false;
                 }