diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index d94afa50707e..ca615fe69a84 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -942,7 +942,7 @@ function setMoneyRequestDistanceRate(transactionID: string, customUnitRateID: st
         comment: {
             customUnit: {
                 customUnitRateID,
-                defaultP2PRate: null,
+                ...(!!policy && {defaultP2PRate: null}),
                 ...(distanceRate && {distanceUnit: distanceRate.unit}),
             },
         },