diff --git a/src/pages/iou/request/step/IOURequestEditReportCommon.tsx b/src/pages/iou/request/step/IOURequestEditReportCommon.tsx
index 924ae7983b97..cc782518ddc0 100644
--- a/src/pages/iou/request/step/IOURequestEditReportCommon.tsx
+++ b/src/pages/iou/request/step/IOURequestEditReportCommon.tsx
@@ -16,7 +16,7 @@ import usePolicy from '@hooks/usePolicy';
 import usePolicyForMovingExpenses from '@hooks/usePolicyForMovingExpenses';
 import useReportTransactions from '@hooks/useReportTransactions';
 import Navigation from '@libs/Navigation/Navigation';
-import {isPolicyAdmin} from '@libs/PolicyUtils';
+import {canSubmitPerDiemExpenseFromWorkspace, isPolicyAdmin} from '@libs/PolicyUtils';
 import {canAddTransaction, getIconsForExpenseReport, isIOUReport, isOpenReport, isReportOwner, sortOutstandingReportsBySelected} from '@libs/ReportUtils';
 import {shouldRestrictUserBillableActions} from '@libs/SubscriptionUtils';
 import {isPerDiemRequest as isPerDiemRequestUtil} from '@libs/TransactionUtils';
@@ -129,6 +129,10 @@ function IOURequestEditReportCommon({
             .filter((report) => {
                 const policy = allPolicies?.[`${ONYXKEYS.COLLECTION.POLICY}${report.policyID}`];
 
+                if (isPerDiemRequest && !canSubmitPerDiemExpenseFromWorkspace(policy)) {
+                    return false;
+                }
+
                 if (canAddTransaction(report, undefined, true)) {
                     return true;
                 }
@@ -151,7 +155,7 @@ function IOURequestEditReportCommon({
                     icons: getIconsForExpenseReport(report, personalDetails, policy),
                 };
             });
-    }, [debouncedSearchValue, outstandingReports, selectedReportID, personalDetails, localeCompare, allPolicies, currentUserPersonalDetails.accountID]);
+    }, [debouncedSearchValue, outstandingReports, selectedReportID, personalDetails, localeCompare, allPolicies, currentUserPersonalDetails.accountID, isPerDiemRequest]);
 
     const navigateBack = () => {
         Navigation.goBack(backTo);
diff --git a/src/pages/iou/request/step/IOURequestStepReport.tsx b/src/pages/iou/request/step/IOURequestStepReport.tsx
index 516952ab9a32..1b6532bc9381 100644
--- a/src/pages/iou/request/step/IOURequestStepReport.tsx
+++ b/src/pages/iou/request/step/IOURequestStepReport.tsx
@@ -136,6 +136,11 @@ function IOURequestStepReport({route, transaction}: IOURequestStepReportProps) {
             setCustomUnitID(transaction.transactionID, newCustomUnitID ?? CONST.CUSTOM_UNITS.FAKE_P2P_ID);
             setCustomUnitRateID(transaction.transactionID, undefined, transaction, newPolicy);
             clearSubrates(transaction.transactionID);
+
+            const newChatReportID = reportOrDraftReportFromValue?.chatReportID ?? reportIDFromRoute;
+            const destinationRoute = ROUTES.MONEY_REQUEST_STEP_DESTINATION.getRoute(action, iouType, transactionID, newChatReportID);
+            Navigation.goBack(destinationRoute, {compareParams: false});
+            return;
         }
 
         const iouConfirmationPageRoute = ROUTES.MONEY_REQUEST_STEP_CONFIRMATION.getRoute(action, iouType, transactionID, reportOrDraftReportFromValue?.chatReportID);
@@ -270,7 +275,7 @@ function IOURequestStepReport({route, transaction}: IOURequestStepReportProps) {
 
     let selectedPolicyID;
     if (isPerDiemTransaction) {
-        selectedPolicyID = perDiemOriginalPolicy?.id;
+        selectedPolicyID = isFromGlobalCreate ? undefined : perDiemOriginalPolicy?.id;
     } else {
         selectedPolicyID = !isEditing && !isFromGlobalCreate ? reportOrDraftReport?.policyID : undefined;
     }