From 1f43e66de9bdef092bad7c7af7559b9af23be279 Mon Sep 17 00:00:00 2001
From: FitseTLT <engfitsum@gmail.com>
Date: Wed, 17 Dec 2025 00:14:26 +0300
Subject: [PATCH 1/3] set empty report to draft status for instant submit with
 approval disabled

---
 src/libs/ReportUtils.ts | 2 +-
 1 file changed, 1 insertion(+), 1 deletion(-)

diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index 044131608b6e..e6b50f7ebbec 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -6865,7 +6865,7 @@ function getExpenseReportStateAndStatus(policy: OnyxEntry<Policy>, isEmptyOptimi
         };
     }
 
-    if (isInstantSubmitEnabledLocal) {
+    if (isInstantSubmitEnabledLocal && !(isSubmitAndCloseLocal && isEmptyOptimisticReport)) {
         return {
             stateNum: CONST.REPORT.STATE_NUM.SUBMITTED,
             statusNum: CONST.REPORT.STATUS_NUM.SUBMITTED,

From 2c8e2b5ab6914acb995913922d6baf7cfe57f767 Mon Sep 17 00:00:00 2001
From: FitseTLT <engfitsum@gmail.com>
Date: Thu, 18 Dec 2025 16:10:35 +0300
Subject: [PATCH 2/3] added test

---
 tests/actions/ReportTest.ts | 36 ++++++++++++++++++++++++++++++++++++
 1 file changed, 36 insertions(+)

diff --git a/tests/actions/ReportTest.ts b/tests/actions/ReportTest.ts
index 2e8f0aae252f..6df1daf437f8 100644
--- a/tests/actions/ReportTest.ts
+++ b/tests/actions/ReportTest.ts
@@ -1890,6 +1890,42 @@ describe('actions/Report', () => {
         });
     });
 
+    it('should create the empty report with draft status if submission is instant with approval disabled', async () => {
+        const accountID = 1234;
+        const policyID = '5678';
+        // Given a policy with instant submission and approval disabled
+        const policy: OnyxTypes.Policy = {
+            ...createRandomPolicy(Number(policyID)),
+            isPolicyExpenseChatEnabled: true,
+            type: CONST.POLICY.TYPE.TEAM,
+            autoReportingFrequency: CONST.POLICY.AUTO_REPORTING_FREQUENCIES.INSTANT,
+            approvalMode: CONST.POLICY.APPROVAL_MODE.OPTIONAL,
+        };
+        const parentReport = ReportUtils.getPolicyExpenseChat(accountID, policyID);
+        await Onyx.merge(`${ONYXKEYS.COLLECTION.POLICY}${policyID}`, policy);
+        if (parentReport?.reportID) {
+            await Onyx.merge(`${ONYXKEYS.COLLECTION.REPORT}${parentReport?.reportID}`, parentReport);
+        }
+
+        // When create new report
+        const optimisticReportData = Report.createNewReport({accountID}, true, false, policyID);
+
+        await waitForBatchedUpdates();
+        // Then the report's status should be draft.
+        await new Promise<void>((resolve) => {
+            const connection = Onyx.connect({
+                key: `${ONYXKEYS.COLLECTION.REPORT}${optimisticReportData.reportID}`,
+                callback: (report) => {
+                    Onyx.disconnect(connection);
+                    expect(report?.stateNum).toBe(CONST.REPORT.STATE_NUM.OPEN);
+                    expect(report?.statusNum).toBe(CONST.REPORT.STATUS_NUM.OPEN);
+
+                    resolve();
+                },
+            });
+        });
+    });
+
     describe('completeOnboarding', () => {
         const TEST_USER_LOGIN = 'test@gmail.com';
         const TEST_USER_ACCOUNT_ID = 1;

From d1170c7febb052885f1c891828fc8b54bd2104eb Mon Sep 17 00:00:00 2001
From: FitseTLT <engfitsum@gmail.com>
Date: Mon, 12 Jan 2026 18:52:53 +0300
Subject: [PATCH 3/3] fix lint

---
 tests/actions/ReportTest.ts | 2 +-
 1 file changed, 1 insertion(+), 1 deletion(-)

diff --git a/tests/actions/ReportTest.ts b/tests/actions/ReportTest.ts
index 04c92a4070d1..e43e12e1ceb5 100644
--- a/tests/actions/ReportTest.ts
+++ b/tests/actions/ReportTest.ts
@@ -1987,7 +1987,7 @@ describe('actions/Report', () => {
         }
 
         // When create new report
-        const optimisticReportData = Report.createNewReport({accountID}, true, false, policyID);
+        const optimisticReportData = Report.createNewReport({accountID}, true, false, policy);
 
         await waitForBatchedUpdates();
         // Then the report's status should be draft.