Oh my heck!!!! I had the EXACT same problem! Only it got worse as if her crate door was even open she would go in there and pee instead of the pad 5 ft away!!!
I then bought the magical xpen as everyone as told you and I can tell you in about a week I had one new puppy!!! I was so frustrated with the entire situtation and immediately called friends and family for advice... this is what i did... Bought the xpen and set up her food toys bed in one area and on the opposite end I made here potty station...
Her potty station... I did away with puppy pads completly I was sad I will be honest because it is more of a convience thing for me but I think I was being a lazy mommy and confusing her... See, I take her to work with me which is 50 plus hours a week and there we were strictly using the great outdoors with a accident RARELY ... there is another dog at work as well and he was using the outdoors so Im sure that was influencing her more to go outside... Well here is the confusing part at home I was using pee pads which was fine until she began to refuse all together! So I decided to nip the problem in the bud! I researched online, talked to her vet, talked to friends and came up with my crazy idea which has saved my LIFE!!!!!
I decided to make a "potty box" if you will... got rid of the pads entirely.. the more I talked to people the more people said she is confused you want her to do one thing at home and one thing at work... so bye bye pads
.... Her potty box... I bought a shallow plastic storage container about 3 ft long and 4ft wide drilled some holes in the bottom for water to drain out... dumped some soil in it and a piece of sod!...
I know it sounds like alot but then when she is home she gets it! GRASS potty... I do now also take her out on a regular basis every 2 hours to do her thing but when i am gone i put her potty box in her x pen and TA-DA!! I can tell you I had one accident the VERY first day but after that.... Genious! My sweet girl has had no more accidents and it has SAVED my life!!!!!!... the price you ask ... 10 dollars exactly! I bought it all at home depot! I hope this helps and YES... Xpens.... Ingenious!!!
Hope this helps!