After clicking "Mark As Cash" expenses are not defaulting to workspace rules for Cash Expenses

[m-natarajan]

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Version Number:
Reproducible in staging?: Needs Reproduction
Reproducible in production?: Needs Reproduction
If this was caught during regression testing, add the test name, ID and link from BrowserStack:
Email or phone of affected tester (no customers):
Logs: https://stackoverflow.com/c/expensify/questions/4856
Expensify/Expensify Issue URL:
Issue reported by: @abbagail
Slack conversation (hyperlinked to channel name): #Expensify Bugs

Action Performed:

Preconditions:
Workspace has Cash expenses = Always reimbursable
Submitter had a company card assigned
Submitter has a true Cash expense

1. Upload receipt via SmartScan
2. Due to company card assigned, Cash expenses has "awaiting merging with company card" alert
3. Click "mark as Cash."
4. Refresh the page and expense is still showing "Non-reimbursable."

Expected Result:

Once marked as cash, switch to Reimbursable per workspace rules

Actual Result:

Expense shows Non reimbursable

Workaround:

Unknown

Platforms:

Select the officially supported platforms where the issue was reproduced:

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

Screenshots/Videos

The screenshot for the issue is in Slack thread

View all open jobs on GitHub

Issue Owner

Current Issue Owner: @fedirjh

[melvin-bot]

Triggered auto assignment to Contributor-plus team member for initial proposal review - @truph01 (External)

[melvin-bot]

Triggered auto assignment to @dylanexpensify (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.

[melvin-bot]

Unable to auto-create job on Upwork. The BZ team member should create it manually for this issue.

[mukhrr]

Proposal

Please re-state the problem that we are trying to solve in this issue.

When a user with a company card uploads a receipt via SmartScan and then clicks "Mark as Cash" to dismiss the "awaiting merging with company card" alert, the expense remains marked as "Non-reimbursable" even though the workspace policy has "Cash expenses = Always reimbursable" enabled, which prevents the submitter from getting reimbursed for a legitimate cash expense.

What is the root cause of that problem?

The markAsCash function only dismisses the RTER violation and adds a system message, but it does not update the transaction's reimbursable field or clear the managedCard flag on the transaction. When SmartScan creates the transaction with a pending RTER violation (awaiting company card merge), the transaction is initially set as non-reimbursable because the system expects it to match a company card transaction. When the user explicitly marks it as cash, the violation is removed but the reimbursable: false value persists on the transaction.
https://github.com/Expensify/App/blob/69e42462f2c64074aa0ab19a3bc43a3422a0b991/src/libs/actions/Transaction.ts#L678-L727

The function's optimistic data only handles two Onyx updates — filtering out the RTER violation and adding a report action — but never touches the transaction itself:
https://github.com/Expensify/App/blob/69e42462f2c64074aa0ab19a3bc43a3422a0b991/src/libs/actions/Transaction.ts#L690-L703

What changes do you think we should make in order to solve the problem?

1. Update the markAsCash function in src/libs/actions/Transaction.ts to also optimistically update the transaction's reimbursable and managedCard fields. When the user marks an expense as cash, we should set managedCard: false (since it's no longer treated as a card transaction) and set reimbursable: true based on the workspace's defaultReimbursable policy setting. The callers already have access to the policy, so we need to pass the relevant information through.
   https://github.com/Expensify/App/blob/69e42462f2c64074aa0ab19a3bc43a3422a0b991/src/libs/actions/Transaction.ts#L678-L727

--- a/src/libs/actions/Transaction.ts
+++ b/src/libs/actions/Transaction.ts
@@ -678,1 +678,1 @@
-function markAsCash(transactionID: string | undefined, transactionThreadReportID: string | undefined, transactionViolations: TransactionViolations = []) {
+function markAsCash(transactionID: string | undefined, transactionThreadReportID: string | undefined, transactionViolations: TransactionViolations = [], defaultReimbursable = true) {
     ...
     const onyxData: OnyxData<...> = {
         optimisticData: [
             // Optimistically dismissing the violation
             { ... },
             // Optimistically adding the system message
             { ... },
+            // Optimistically updating the transaction to reflect it is now a cash expense
+            {
+                onyxMethod: Onyx.METHOD.MERGE,
+                key: `${ONYXKEYS.COLLECTION.TRANSACTION}${transactionID}`,
+                value: {
+                    managedCard: false,
+                    reimbursable: defaultReimbursable,
+                },
+            },
         ],
         failureData: [
             // Rolling back the dismissal of the violation
             { ... },
             { ... },
+            // Rolling back the transaction update
+            {
+                onyxMethod: Onyx.METHOD.MERGE,
+                key: `${ONYXKEYS.COLLECTION.TRANSACTION}${transactionID}`,
+                value: {
+                    managedCard: true,
+                    reimbursable: false,
+                },
+            },
         ],
     };

2. Update the callers in MoneyRequestHeader.tsx to pass the policy's defaultReimbursable value.
   https://github.com/Expensify/App/blob/69e42462f2c64074aa0ab19a3bc43a3422a0b991/src/components/MoneyRequestHeader.tsx#L185-L187

--- a/src/components/MoneyRequestHeader.tsx
+++ b/src/components/MoneyRequestHeader.tsx
@@ -185,3 +185,3 @@
     const markAsCash = useCallback(() => {
-        markAsCashAction(transaction?.transactionID, reportID, transactionViolations);
-    }, [reportID, transaction?.transactionID, transactionViolations]);
+        markAsCashAction(transaction?.transactionID, reportID, transactionViolations, policy?.defaultReimbursable ?? true);
+    }, [reportID, transaction?.transactionID, transactionViolations, policy?.defaultReimbursable]);

3. Update the caller in MoneyReportHeader.tsx similarly.
   https://github.com/Expensify/App/blob/69e42462f2c64074aa0ab19a3bc43a3422a0b991/src/components/MoneyReportHeader.tsx#L671-L681

--- a/src/components/MoneyReportHeader.tsx
+++ b/src/components/MoneyReportHeader.tsx
@@ -680,2 +680,2 @@
-        markAsCashAction(iouTransactionID, reportID, transactionViolations);
-    }, [iouTransactionID, requestParentReportAction, transactionThreadReport?.reportID, transactionViolations]);
+        markAsCashAction(iouTransactionID, reportID, transactionViolations, policy?.defaultReimbursable ?? true);
+    }, [iouTransactionID, requestParentReportAction, transactionThreadReport?.reportID, transactionViolations, policy?.defaultReimbursable]);

What alternative solutions did you explore? (Optional)

[melvin-bot]

@truph01 Whoops! This issue is 2 days overdue. Let's get this updated quick!

[truph01]

@mukhrr Are you able to reproduce this issue? If so, could you share the steps?