diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index 0c79afe1de4c..76b7d532691e 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -438,10 +438,6 @@ type AncestorIDs = {
 
 type MissingPaymentMethod = 'bankAccount' | 'wallet';
 
-type OutstandingChildRequest = {
-    hasOutstandingChildRequest?: boolean;
-};
-
 let currentUserEmail: string | undefined;
 let currentUserPrivateDomain: string | undefined;
 let currentUserAccountID: number | undefined;
@@ -5689,29 +5685,25 @@ function hasActionsWithErrors(reportID: string): boolean {
 }
 
 /**
- * @returns the object to update `report.hasOutstandingChildRequest`
+ * @returns the optimistically calculated `hasOutstandingChildRequest` for the report (`null` if the value cannot be calculated).
  */
-function getOutstandingChildRequest(iouReport: OnyxEntry<Report> | EmptyObject): OutstandingChildRequest {
+function getOptimisticOutstandingChildRequest(iouReport: OnyxEntry<Report> | EmptyObject): boolean | null {
     if (!iouReport || isEmptyObject(iouReport)) {
-        return {};
+        return null;
     }
 
     if (!isExpenseReport(iouReport)) {
-        return {
-            hasOutstandingChildRequest: iouReport.managerID === currentUserAccountID && iouReport.total !== 0,
-        };
+        return iouReport.managerID === currentUserAccountID && iouReport.total !== 0;
     }
 
     const policy = getPolicy(iouReport.policyID);
     const shouldBeManuallySubmitted = PolicyUtils.isPaidGroupPolicy(policy) && !policy?.harvesting?.enabled;
     if (shouldBeManuallySubmitted || PolicyUtils.isPolicyAdmin(policy)) {
-        return {
-            hasOutstandingChildRequest: true,
-        };
+        return true;
     }
 
     // We don't need to update hasOutstandingChildRequest in this case
-    return {};
+    return null;
 }
 
 export {
@@ -5939,7 +5931,7 @@ export {
     isTrackExpenseReport,
     hasActionsWithErrors,
     getGroupChatName,
-    getOutstandingChildRequest,
+    getOptimisticOutstandingChildRequest,
 };
 
 export type {
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index 9b53ad067271..54dce719012d 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -452,7 +452,7 @@ function buildOnyxDataForMoneyRequest(
     isOneOnOneSplit = false,
 ): [OnyxUpdate[], OnyxUpdate[], OnyxUpdate[]] {
     const isScanRequest = TransactionUtils.isScanRequest(transaction);
-    const outstandingChildRequest = ReportUtils.getOutstandingChildRequest(iouReport);
+    const outstandingChildRequest = ReportUtils.getOptimisticOutstandingChildRequest(iouReport);
     const clearedPendingFields = Object.fromEntries(Object.keys(transaction.pendingFields ?? {}).map((key) => [key, null]));
     const optimisticData: OnyxUpdate[] = [];
     let newQuickAction: ValueOf<typeof CONST.QUICK_ACTIONS> = isScanRequest ? CONST.QUICK_ACTIONS.REQUEST_SCAN : CONST.QUICK_ACTIONS.REQUEST_MANUAL;
@@ -470,7 +470,7 @@ function buildOnyxDataForMoneyRequest(
                 lastReadTime: DateUtils.getDBTime(),
                 lastMessageTranslationKey: '',
                 iouReportID: iouReport.reportID,
-                ...outstandingChildRequest,
+                ...(outstandingChildRequest !== null ? {hasOutstandingChildRequest: outstandingChildRequest} : {}),
                 ...(isNewChatReport ? {pendingFields: {createChat: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD}} : {}),
             },
         });
@@ -1542,6 +1542,7 @@ function getUpdateMoneyRequestParams(
 
     updatedMoneyRequestReport.cachedTotal = CurrencyUtils.convertToDisplayString(updatedMoneyRequestReport.total, transactionDetails?.currency);
 
+    const optimisticOutstandingChildRequest = ReportUtils.getOptimisticOutstandingChildRequest(updatedMoneyRequestReport);
     optimisticData.push(
         {
             onyxMethod: Onyx.METHOD.MERGE,
@@ -1551,7 +1552,7 @@ function getUpdateMoneyRequestParams(
         {
             onyxMethod: Onyx.METHOD.MERGE,
             key: `${ONYXKEYS.COLLECTION.REPORT}${iouReport?.parentReportID}`,
-            value: ReportUtils.getOutstandingChildRequest(updatedMoneyRequestReport),
+            value: optimisticOutstandingChildRequest !== null ? {hasOutstandingChildRequest: optimisticOutstandingChildRequest} : {},
         },
     );
     successData.push({
@@ -3714,6 +3715,7 @@ function deleteMoneyRequest(transactionID: string, reportAction: OnyxTypes.Repor
         );
     }
 
+    const optimisticOutstandingChildRequest = ReportUtils.getOptimisticOutstandingChildRequest(updatedIOUReport);
     optimisticData.push(
         {
             onyxMethod: Onyx.METHOD.MERGE,
@@ -3735,7 +3737,7 @@ function deleteMoneyRequest(transactionID: string, reportAction: OnyxTypes.Repor
         {
             onyxMethod: Onyx.METHOD.MERGE,
             key: `${ONYXKEYS.COLLECTION.REPORT}${chatReport?.reportID}`,
-            value: ReportUtils.getOutstandingChildRequest(updatedIOUReport),
+            value: optimisticOutstandingChildRequest !== null ? {hasOutstandingChildRequest: optimisticOutstandingChildRequest} : {},
         },
     );