From d25324a6907d6f7d7fd28f15fbdfd35b78e0e7a8 Mon Sep 17 00:00:00 2001
From: mkzie2 <mkzie2@gmail.com>
Date: Mon, 3 Nov 2025 15:07:55 +0700
Subject: [PATCH] fix: don't show out of policy violation for missing category
 transaction

---
 src/libs/Violations/ViolationsUtils.ts |  4 ++--
 tests/unit/ViolationUtilsTest.ts       | 12 ++++++++++++
 2 files changed, 14 insertions(+), 2 deletions(-)

diff --git a/src/libs/Violations/ViolationsUtils.ts b/src/libs/Violations/ViolationsUtils.ts
index 51d479b13726..156044e583df 100644
--- a/src/libs/Violations/ViolationsUtils.ts
+++ b/src/libs/Violations/ViolationsUtils.ts
@@ -4,7 +4,7 @@ import reject from 'lodash/reject';
 import type {OnyxCollection, OnyxEntry, OnyxUpdate} from 'react-native-onyx';
 import Onyx from 'react-native-onyx';
 import type {LocaleContextProps} from '@components/LocaleContextProvider';
-import {getDecodedCategoryName} from '@libs/CategoryUtils';
+import {getDecodedCategoryName, isCategoryMissing} from '@libs/CategoryUtils';
 import * as CurrencyUtils from '@libs/CurrencyUtils';
 import DateUtils from '@libs/DateUtils';
 import {isReceiptError} from '@libs/ErrorUtils';
@@ -264,7 +264,7 @@ const ViolationsUtils = {
             const isCategoryInPolicy = categoryKey ? policyCategories?.[categoryKey]?.enabled : false;
 
             // Add 'categoryOutOfPolicy' violation if category is not in policy
-            if (!hasCategoryOutOfPolicyViolation && categoryKey && !isCategoryInPolicy) {
+            if (!hasCategoryOutOfPolicyViolation && !isCategoryMissing(categoryKey) && !isCategoryInPolicy) {
                 newTransactionViolations.push({name: 'categoryOutOfPolicy', type: CONST.VIOLATION_TYPES.VIOLATION});
             }
 
diff --git a/tests/unit/ViolationUtilsTest.ts b/tests/unit/ViolationUtilsTest.ts
index b5617e890864..1139c9bb8081 100644
--- a/tests/unit/ViolationUtilsTest.ts
+++ b/tests/unit/ViolationUtilsTest.ts
@@ -333,6 +333,18 @@ describe('getViolationsOnyxData', () => {
             expect(result.value).not.toContainEqual(missingCategoryViolation);
         });
 
+        it('should not add categoryOutOfPolicy violation when category is Uncategorized', () => {
+            transaction.category = 'Uncategorized';
+            const result = ViolationsUtils.getViolationsOnyxData(transaction, transactionViolations, policy, policyTags, policyCategories, false, false);
+            expect(result.value).not.toContainEqual(categoryOutOfPolicyViolation);
+        });
+
+        it('should not add categoryOutOfPolicy violation when category is none', () => {
+            transaction.category = 'none';
+            const result = ViolationsUtils.getViolationsOnyxData(transaction, transactionViolations, policy, policyTags, policyCategories, false, false);
+            expect(result.value).not.toContainEqual(categoryOutOfPolicyViolation);
+        });
+
         it('should add categoryOutOfPolicy violation to existing violations if they exist', () => {
             transaction.category = 'Bananas';
             transaction.amount = 1000000;