Reports - “Marked as paid” system message does not appear while offline

[jponikarchuk]

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Version Number: 9.3.7-1
Reproducible in staging?: Yes
Reproducible in production?: No
If this was caught during regression testing, add the test name, ID and link from BrowserStack: #79536
Email or phone of affected tester (no customers): applausetester+abbuq@applause.expensifail.com
Issue reported by: Applause Internal Team
Bug source: Pull Request QA execution
Device used: Web, Android, IOS
App Component: Other

Action Performed:

1. Tap to the "Reports" tab
2. Go offline
3. Click on "Create expense"
4. Tap on "Manual"
5. Add an amount and tap on "Next"
6. In Choose recipient page, select "Manager McTest"
7. Create and open the expense
8. Verify that the Marked as paid system message appears, header shows paid status

Expected Result:

“Marked as paid” system message should appear while offline

Actual Result:

“Marked as paid” system message does not appear while offline

Workaround:

Unknown

Platforms:

• Android: App
• Android: mWeb Chrome
• iOS: App
• iOS: mWeb Safari
• iOS: mWeb Chrome
• Windows: Chrome
• MacOS: Chrome / Safari

Screenshots/Videos

1.mp4

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[melvin-bot]

You have been assigned to this deploy blocker because you recently merged this PR: #79536

[melvin-bot]

💬 A slack conversation has been started in #expensify-open-source

[melvin-bot]

Triggered auto assignment to @kadiealexander (Bug), see https://stackoverflow.com/c/expensify/questions/14418 for more details. Please add this bug to a GH project, as outlined in the SO.

[github-actions]

👋 Friendly reminder that deploy blockers are time-sensitive ⏱ issues! Check out the open `StagingDeployCash` deploy checklist to see the list of PRs included in this release, then work quickly to do one of the following:

1. Identify the pull request that introduced this issue and revert it.
2. Find someone who can quickly fix the issue.
3. Fix the issue yourself.

[OSBotify]

🔍 Investigation Summary

Classification: Frontend bug
Causing PR: #79536 - "fix: Offline expense shows Outstanding from report but Paid from chat" by @nkdengineer (High confidence)
Related Issues: #79027 (original issue that PR #79536 attempted to fix)

Recommendation: REVERT

PR #79536 attempted to fix the offline expense status issue but introduced a new regression. The fix is incomplete and needs to be reworked. Reverting is the safest option to unblock the deploy while a proper fix is developed.

Labels: Keeping DeployBlockerCash (this is a frontend bug that blocks App deploy). Label DeployBlocker was not present, so no changes needed.

📋 Detailed Analysis

Evidence

PR #79536 was merged on 2026-01-22 and is included in the 9.3.7-1 staging deploy. The bug is reproducible only on staging (not production), confirming it was introduced by a PR in this deployment. The bot comment confirms PR #79536 as the suspected cause, and my investigation validates this.

What Changed in PR #79536

The PR modified src/libs/actions/IOU/index.ts to:

1. Create a new iouReport variable with updated status fields including lastActionType: MARKED_REIMBURSED (lines 1883-1890)
2. Update the optimistic data for the report with these fields (lines 1899-1910)
3. Pass the updated iouReport to getSearchOnyxUpdate() function (line 2227)

Root Cause

The fix is incomplete because it only updates the report metadata but does NOT create the actual report action that displays the "Marked as paid" system message.

Specifically:

• Lines 1886 & 1905 set lastActionType: CONST.REPORT.ACTIONS.TYPE.MARKED_REIMBURSED on the report object
• Lines 1871-1881 create an optimistic IOU action with type PAY (not MARKED_REIMBURSED)
• Lines 1913-1918 push this PAY action to the report actions collection
• Problem: The system message "Marked as paid" is rendered from an actual MARKED_REIMBURSED action in the report actions list, which was never created
• Result: The report shows "paid" status in the header, but no "Marked as paid" message appears in the chat

Verification

• The PR directly modifies the affected code path in src/libs/actions/IOU/index.ts
• The changes specifically handle the isMoneyRequestToManagerMcTest flow
• The test steps in the bug report exactly match the test steps in PR fix: Offline expense shows Outstanding from report but Paid from chat #79536
• The bug only appears on staging where this PR is deployed, not in production

[nkdengineer]

Looks like it comes from #78634. It works well in my PR.

Screen.Recording.2026-01-23.at.14.06.17.mov

[Beamanator]

@mjasikowski how's the investigation going here? Looks like #78634 is being reverted so i'll probably ask qa to test ALL blockers after that one gets CP'd - cuz that revert fixes a ton