diff --git a/src/libs/actions/Policy/Policy.ts b/src/libs/actions/Policy/Policy.ts
index eb190d9b1e67..b04536915b6c 100644
--- a/src/libs/actions/Policy/Policy.ts
+++ b/src/libs/actions/Policy/Policy.ts
@@ -1466,6 +1466,11 @@ function createDraftInitialWorkspace(policyOwnerEmail = '', policyName = '', pol
                 harvesting: {
                     enabled: true,
                 },
+                pendingFields: {
+                    autoReporting: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+                    approvalMode: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+                    reimbursementChoice: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+                },
             },
         },
     ];
@@ -1538,6 +1543,11 @@ function buildPolicyData(policyOwnerEmail = '', makeMeAdmin = false, policyName
                     },
                 },
                 chatReportIDAdmins: makeMeAdmin ? Number(adminsChatReportID) : undefined,
+                pendingFields: {
+                    autoReporting: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+                    approvalMode: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+                    reimbursementChoice: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+                },
             },
         },
         {
@@ -1606,7 +1616,14 @@ function buildPolicyData(policyOwnerEmail = '', makeMeAdmin = false, policyName
         {
             onyxMethod: Onyx.METHOD.MERGE,
             key: `${ONYXKEYS.COLLECTION.POLICY}${policyID}`,
-            value: {pendingAction: null},
+            value: {
+                pendingAction: null,
+                pendingFields: {
+                    autoReporting: null,
+                    approvalMode: null,
+                    reimbursementChoice: null,
+                },
+            },
         },
         {
             onyxMethod: Onyx.METHOD.MERGE,
@@ -1802,6 +1819,11 @@ function createDraftWorkspace(policyOwnerEmail = '', makeMeAdmin = false, policy
                     },
                 },
                 chatReportIDAdmins: makeMeAdmin ? Number(adminsChatReportID) : undefined,
+                pendingFields: {
+                    autoReporting: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+                    approvalMode: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+                    reimbursementChoice: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+                },
             },
         },
         {
@@ -2078,6 +2100,11 @@ function createWorkspaceFromIOUPayment(iouReport: Report | EmptyObject): string
                 errors: {},
             },
         },
+        pendingFields: {
+            autoReporting: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+            approvalMode: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+            reimbursementChoice: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD,
+        },
     };
 
     const optimisticData: OnyxUpdate[] = [
@@ -2148,7 +2175,14 @@ function createWorkspaceFromIOUPayment(iouReport: Report | EmptyObject): string
         {
             onyxMethod: Onyx.METHOD.MERGE,
             key: `${ONYXKEYS.COLLECTION.POLICY}${policyID}`,
-            value: {pendingAction: null},
+            value: {
+                pendingAction: null,
+                pendingFields: {
+                    autoReporting: null,
+                    approvalMode: null,
+                    reimbursementChoice: null,
+                },
+            },
         },
         {
             onyxMethod: Onyx.METHOD.MERGE,
diff --git a/src/pages/workspace/distanceRates/PolicyDistanceRatesPage.tsx b/src/pages/workspace/distanceRates/PolicyDistanceRatesPage.tsx
index da5fbb777306..8764ff70cc28 100644
--- a/src/pages/workspace/distanceRates/PolicyDistanceRatesPage.tsx
+++ b/src/pages/workspace/distanceRates/PolicyDistanceRatesPage.tsx
@@ -110,11 +110,16 @@ function PolicyDistanceRatesPage({policy, route}: PolicyDistanceRatesPageProps)
                     keyForList: value.customUnitRateID ?? '',
                     isSelected: selectedDistanceRates.find((rate) => rate.customUnitRateID === value.customUnitRateID) !== undefined,
                     isDisabled: value.pendingAction === CONST.RED_BRICK_ROAD_PENDING_ACTION.DELETE,
-                    pendingAction: value.pendingAction ?? value.pendingFields?.rate ?? value.pendingFields?.enabled ?? value.pendingFields?.currency,
+                    pendingAction:
+                        value.pendingAction ??
+                        value.pendingFields?.rate ??
+                        value.pendingFields?.enabled ??
+                        value.pendingFields?.currency ??
+                        (policy?.pendingAction === CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD ? policy?.pendingAction : undefined),
                     errors: value.errors ?? undefined,
                     rightElement: <ListItemRightCaretWithLabel labelText={value.enabled ? translate('workspace.common.enabled') : translate('workspace.common.disabled')} />,
                 })),
-        [customUnit?.attributes?.unit, customUnitRates, selectedDistanceRates, translate],
+        [customUnit?.attributes?.unit, customUnitRates, selectedDistanceRates, translate, policy?.pendingAction],
     );
 
     const addRate = () => {