diff --git a/src/libs/PolicyUtils.ts b/src/libs/PolicyUtils.ts
index ddcf1c0298b7..1951b57d2954 100644
--- a/src/libs/PolicyUtils.ts
+++ b/src/libs/PolicyUtils.ts
@@ -413,6 +413,10 @@ function isSubmitAndClose(policy: OnyxInputOrEntry<Policy>): boolean {
     return policy?.approvalMode === CONST.POLICY.APPROVAL_MODE.OPTIONAL;
 }
 
+function arePaymentsEnabled(policy: OnyxEntry<Policy>): boolean {
+    return policy?.reimbursementChoice !== CONST.POLICY.REIMBURSEMENT_CHOICES.REIMBURSEMENT_NO;
+}
+
 function isControlOnAdvancedApprovalMode(policy: OnyxInputOrEntry<Policy>): boolean {
     return policy?.type === CONST.POLICY.TYPE.CORPORATE && getApprovalWorkflow(policy) === CONST.POLICY.APPROVAL_MODE.ADVANCED;
 }
@@ -1064,6 +1068,7 @@ export {
     isPolicyEmployee,
     isPolicyFeatureEnabled,
     isPolicyOwner,
+    arePaymentsEnabled,
     isSubmitAndClose,
     isTaxTrackingEnabled,
     shouldShowPolicy,
diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index c18b6c41b420..9cef9488fa5e 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -1701,6 +1701,10 @@ function canAddOrDeleteTransactions(moneyRequestReport: OnyxEntry<Report>): bool
         return false;
     }
 
+    if (PolicyUtils.isInstantSubmitEnabled(policy) && PolicyUtils.isSubmitAndClose(policy) && !PolicyUtils.arePaymentsEnabled(policy)) {
+        return false;
+    }
+
     if (isReportApproved(moneyRequestReport) || isSettled(moneyRequestReport?.reportID)) {
         return false;
     }