Charging for Reimbursable Expenses in QuickBooks Online

Charging for Reimbursable Expenses in QuickBooks Online

Perhaps you would like to be reimbursed by your customers for expenses incurred on their behalf.   With QuickBooks Online, these expenses, called Billable Expenses, can be tracked and invoiced to your customer for reimbursement. To activate the feature that allows you to mark an expense as billable to a customer, you must set the proper preferences in the Company Settings prior to entering transactions. You can find the Company Settings under the gear icon then under Settings.  In the Expenses section, click on the pencil to the right in order to open the box to check the box Make expenses and items billable.  

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This will add a billable column on bills and checks. When you record an expense, specify an account or product/service item. QuickBooks Online will not allow you to post billable expenses to an income account. Then check the box in the billable column and specify the associated customer or sub-customer.

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In addition to the financial transaction recording the expenditure, when the transaction is marked as billable to a customer, QuickBooks Online creates a billable expense charge.

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Billable expense charges are non-posting transactions that are linked to the originating transaction. Changes to the originating expense transaction update the billable expense charge. If the originating expense transaction is un-checked as billable to a customer, the billable expense charge is deleted.

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When an invoice is created for a customer that has billable expense charges associated that are not otherwise associated to another invoice, the “drawer”(box(es) to the right titled “Billable expense) will automatically show suggesting you add the charge(s) to the invoice.

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The drawer will only show charges for that particular customer, not any charges associated to sub-customers. The same is true of the opposite situation. If the invoice is created for a sub-customer, the drawer will only show charges associated to the sub-customer, not the parent customer.

Billable expense charges added to an invoice can be changed once pulled onto the invoice and will still remain linked to the billable expense charge. QuickBooks Online offers additional settings associated with billable expenses to optimize QuickBooks Online for some common processes such as markups, track as income, and charging sales tax.

If you would like to learn more about this QuickBooks Online Strategy, please call Susan at 847.895.9880.

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