diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index 454c25a0b6d1..4f8b93e7dcfe 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -5281,7 +5281,7 @@ function buildOptimisticExpenseReport(
     return expenseReport;
 }
 
-function getFormattedAmount(reportAction: ReportAction) {
+function getFormattedAmount(reportAction: ReportAction, report?: Report | null) {
     if (
         !isSubmittedAction(reportAction) &&
         !isForwardedAction(reportAction) &&
@@ -5292,30 +5292,38 @@ function getFormattedAmount(reportAction: ReportAction) {
         return '';
     }
     const originalMessage = getOriginalMessage(reportAction);
-    const formattedAmount = convertToDisplayString(Math.abs(originalMessage?.amount ?? 0), originalMessage?.currency);
+
+    // Expense reports can have a negative amount and we need to display it as negative in the UI
+    // the amount found in originalMessage does not accurately track this so we need to use the total from the report instead
+    const amount = report && isExpenseReport(report) ? (report?.total ?? 0) * -1 : Math.abs(originalMessage?.amount ?? 0);
+    const formattedAmount = convertToDisplayString(amount, originalMessage?.currency);
     return formattedAmount;
 }
 
 function getReportAutomaticallySubmittedMessage(
     reportAction: ReportAction<typeof CONST.REPORT.ACTIONS.TYPE.SUBMITTED> | ReportAction<typeof CONST.REPORT.ACTIONS.TYPE.SUBMITTED_AND_CLOSED>,
+    report?: Report,
 ) {
-    return translateLocal('iou.automaticallySubmittedAmount', {formattedAmount: getFormattedAmount(reportAction)});
+    return translateLocal('iou.automaticallySubmittedAmount', {formattedAmount: getFormattedAmount(reportAction, report)});
 }
 
-function getIOUSubmittedMessage(reportAction: ReportAction<typeof CONST.REPORT.ACTIONS.TYPE.SUBMITTED> | ReportAction<typeof CONST.REPORT.ACTIONS.TYPE.SUBMITTED_AND_CLOSED>) {
-    return translateLocal('iou.submittedAmount', {formattedAmount: getFormattedAmount(reportAction)});
+function getIOUSubmittedMessage(
+    reportAction: ReportAction<typeof CONST.REPORT.ACTIONS.TYPE.SUBMITTED> | ReportAction<typeof CONST.REPORT.ACTIONS.TYPE.SUBMITTED_AND_CLOSED>,
+    report?: Report,
+) {
+    return translateLocal('iou.submittedAmount', {formattedAmount: getFormattedAmount(reportAction, report)});
 }
 
-function getReportAutomaticallyApprovedMessage(reportAction: ReportAction<typeof CONST.REPORT.ACTIONS.TYPE.APPROVED>) {
-    return translateLocal('iou.automaticallyApprovedAmount', {amount: getFormattedAmount(reportAction)});
+function getReportAutomaticallyApprovedMessage(reportAction: ReportAction<typeof CONST.REPORT.ACTIONS.TYPE.APPROVED>, report?: Report) {
+    return translateLocal('iou.automaticallyApprovedAmount', {amount: getFormattedAmount(reportAction, report)});
 }
 
-function getIOUUnapprovedMessage(reportAction: ReportAction<typeof CONST.REPORT.ACTIONS.TYPE.UNAPPROVED>) {
-    return translateLocal('iou.unapprovedAmount', {amount: getFormattedAmount(reportAction)});
+function getIOUUnapprovedMessage(reportAction: ReportAction<typeof CONST.REPORT.ACTIONS.TYPE.UNAPPROVED>, report?: Report) {
+    return translateLocal('iou.unapprovedAmount', {amount: getFormattedAmount(reportAction, report)});
 }
 
-function getIOUApprovedMessage(reportAction: ReportAction<typeof CONST.REPORT.ACTIONS.TYPE.APPROVED>) {
-    return translateLocal('iou.approvedAmount', {amount: getFormattedAmount(reportAction)});
+function getIOUApprovedMessage(reportAction: ReportAction<typeof CONST.REPORT.ACTIONS.TYPE.APPROVED>, report?: Report) {
+    return translateLocal('iou.approvedAmount', {amount: getFormattedAmount(reportAction, report)});
 }
 
 /**
@@ -5329,7 +5337,7 @@ function getReportAutomaticallyForwardedMessage(reportAction: ReportAction<typeo
 
     // Older FORWARDED action might not have the amount stored in the original message, we'll fallback to getting the amount from the report instead.
     if (originalMessage?.amount) {
-        formattedAmount = getFormattedAmount(reportAction);
+        formattedAmount = getFormattedAmount(reportAction, expenseReport);
     } else {
         formattedAmount = convertToDisplayString(getMoneyRequestSpendBreakdown(expenseReport).totalDisplaySpend, expenseReport?.currency);
     }
@@ -5352,7 +5360,7 @@ function getIOUForwardedMessage(
 
     // Older FORWARDED action might not have the amount stored in the original message, we'll fallback to getting the amount from the report instead.
     if (originalMessage?.amount) {
-        formattedAmount = getFormattedAmount(reportAction);
+        formattedAmount = getFormattedAmount(reportAction, expenseReport);
     } else {
         formattedAmount = convertToDisplayString(getMoneyRequestSpendBreakdown(expenseReport, reports).totalDisplaySpend, expenseReport?.currency);
     }
diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index ef8674e2f16c..fdf31a31b3b1 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -8277,7 +8277,7 @@ function canIOUBePaid(
         !isOpenExpenseReport &&
         !iouSettled &&
         !iouReport?.isWaitingOnBankAccount &&
-        reimbursableSpend !== 0 &&
+        reimbursableSpend > 0 &&
         !isChatReportArchived &&
         !isAutoReimbursable &&
         (!shouldBeApproved || !shouldCheckApprovedState) &&
diff --git a/src/pages/home/report/PureReportActionItem.tsx b/src/pages/home/report/PureReportActionItem.tsx
index de098395987f..4208aa96f066 100644
--- a/src/pages/home/report/PureReportActionItem.tsx
+++ b/src/pages/home/report/PureReportActionItem.tsx
@@ -835,25 +835,25 @@ function PureReportActionItem({
             if (wasSubmittedViaHarvesting) {
                 children = (
                     <ReportActionItemBasicMessage message="">
-                        <RenderHTML html={`<comment><muted-text>${getReportAutomaticallySubmittedMessage(action)}</muted-text></comment>`} />
+                        <RenderHTML html={`<comment><muted-text>${getReportAutomaticallySubmittedMessage(action, report)}</muted-text></comment>`} />
                     </ReportActionItemBasicMessage>
                 );
             } else {
-                children = <ReportActionItemBasicMessage message={getIOUSubmittedMessage(action)} />;
+                children = <ReportActionItemBasicMessage message={getIOUSubmittedMessage(action, report)} />;
             }
         } else if (isActionOfType(action, CONST.REPORT.ACTIONS.TYPE.APPROVED)) {
             const wasAutoApproved = getOriginalMessage(action)?.automaticAction ?? false;
             if (wasAutoApproved) {
                 children = (
                     <ReportActionItemBasicMessage message="">
-                        <RenderHTML html={`<comment><muted-text>${getReportAutomaticallyApprovedMessage(action)}</muted-text></comment>`} />
+                        <RenderHTML html={`<comment><muted-text>${getReportAutomaticallyApprovedMessage(action, report)}</muted-text></comment>`} />
                     </ReportActionItemBasicMessage>
                 );
             } else {
-                children = <ReportActionItemBasicMessage message={getIOUApprovedMessage(action)} />;
+                children = <ReportActionItemBasicMessage message={getIOUApprovedMessage(action, report)} />;
             }
         } else if (isUnapprovedAction(action)) {
-            children = <ReportActionItemBasicMessage message={getIOUUnapprovedMessage(action)} />;
+            children = <ReportActionItemBasicMessage message={getIOUUnapprovedMessage(action, report)} />;
         } else if (isActionOfType(action, CONST.REPORT.ACTIONS.TYPE.FORWARDED)) {
             const wasAutoForwarded = getOriginalMessage(action)?.automaticAction ?? false;
             if (wasAutoForwarded) {
diff --git a/tests/actions/IOUTest.ts b/tests/actions/IOUTest.ts
index 51e621909f60..82b8db884cd5 100644
--- a/tests/actions/IOUTest.ts
+++ b/tests/actions/IOUTest.ts
@@ -6,6 +6,7 @@ import {
     canApproveIOU,
     canCancelPayment,
     cancelPayment,
+    canIOUBePaid,
     canUnapproveIOU,
     deleteMoneyRequest,
     payMoneyRequest,
@@ -4768,4 +4769,26 @@ describe('actions/IOU', () => {
             expect(canCancelPayment(fakeReport, {accountID: RORY_ACCOUNT_ID})).toBeTruthy();
         });
     });
+
+    describe('canIOUBePaid', () => {
+        it('should return false if the report has negative total', () => {
+            const policyChat = createRandomReport(1);
+            const fakePolicy: Policy = {
+                ...createRandomPolicy(Number('AA')),
+                type: CONST.POLICY.TYPE.TEAM,
+                approvalMode: CONST.POLICY.APPROVAL_MODE.BASIC,
+            };
+
+            const fakeReport: Report = {
+                ...createRandomReport(1),
+                type: CONST.REPORT.TYPE.EXPENSE,
+                policyID: 'AA',
+                stateNum: CONST.REPORT.STATE_NUM.APPROVED,
+                statusNum: CONST.REPORT.STATUS_NUM.APPROVED,
+                managerID: RORY_ACCOUNT_ID,
+                total: 100, // positive amount in the DB means negative amount in the UI
+            };
+            expect(canIOUBePaid(fakeReport, policyChat, fakePolicy)).toBeFalsy();
+        });
+    });
 });