[$250] [Due for payment 2025-07-14] [Auto-Submit] Update optimistic expense report flow for Auto-Submit

[MarioExpensify]

Auto-Submit Project

Tracking Issue: https://github.com/Expensify/Expensify/issues/457732

Design Doc Section: 2.2 [External] Optimistic expense report flow changes

HOLD for #63195

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Task

Implement the new rules of Auto-Submit flow in the Frontend:

• Smart scans will always create a new draft (“OPEN” state) single-expense report. No extra state changes will be made without BE interaction.
• Manual expenses are all grouped into a draft (“OPEN” state) report regardless of having violations or not. No extra state changes will be made without BE interaction.
• No other actions are taken optimistically. The reports will no longer change their state automatically to “SUBMITTED” or “MANUALREIMBURSED” as happened with previous Instant Submit implementation.

In order to achieve the new rules, when the user is in an Instant Submit enabled policy and has the “autoSubmit” beta enabled we must change the behavior of:

• “shouldCreateNewMoneyRequestReport” to always create a new “OPEN” report for smart scan expenses.
• “getExpenseReportStateAndStatus” to always create reports in the “OPEN” state.
• “buildNextStep” to reflect the new rules of auto-submit flow described above.

Issue Owner

Current Issue Owner: @

Upwork Automation - Do Not Edit

• Upwork Job URL: https://www.upwork.com/jobs/~021944741914099107413
• Upwork Job ID: 1944741914099107413
• Last Price Increase: 2025-07-14
• Automatic offers:
• allgandalf | Contributor | 108035495

[melvin-bot]

Triggered auto assignment to @alexpensify (NewFeature), see https://stackoverflowteams.com/c/expensify/questions/14418#:~:text=BugZero%20process%20steps%20for%20feature%20requests for more details. Please add this Feature request to a GH project, as outlined in the SO.

[melvin-bot]

⚠️ It looks like this issue is labelled as a New Feature but not tied to any GitHub Project. Keep in mind that all new features should be tied to GitHub Projects in order to properly track external CAP software time ⚠️

[melvin-bot]

Triggered auto assignment to Design team member for new feature review - @dannymcclain (NewFeature)

[alexpensify]

On hold for #63195