I regularly make purchases on behalf of clients and then invoice them for reimbursement. I currently enter each purchase as an expense and keep a separate list of the expenses so that I remember to add them to the customer's invoice each month. However, this is cumbersome, and I occasionally forget to add expenses to an invoice.
Is there a way to add the expense to a customer's account when the expense is entered? And is there a way for QuickBooks to keep track of these expenses when invoices are created?
Yes! This is the beauty of Quickbooks - when you enter your expense just mark the expense billable to your customer. When you go to invoice that customer you will see a message - or pop up that says that you have outstanding items to bill them for them. Depending on which online product you have the process is a bit different for including the unbilled charges for your client - but it will automatically notify you regardless. You can always go to your reports and search for Unbilled Charges report to help you know what is still outstanding. Your customer center also has an unbilled activity amount on the money bar. This will make your job much easier! Hope this helps! : )
I have figured out why I am unable to bill expenses to customers - it is because this feature is only available for the more expensive versions of QuickBooks Online. As a result, I'm stuck with my manual process.
My account was downgraded, for whatever reason. I found out that when it was downgraded, I lost the ability to write an expense and bill it directly. So, now I have to do as you have stated. It's a real pain in the butt. However, if you have the Plus version of QB you can do this all in one form. You set up the expense and go down the page to Items. Fill in the item and category and then click on which client to bill.
I'm having an issue, or at least my accountant is having an issue with the way quickbooks applies the payment/reimbursement from the customer. It is automatically applying a credit to the expense. I need it to leave the expense alone, and instead apply the reimbursement to a Misc Income Account. Do you know how to accomplish this???
Thanks for joining the conversation, @TradeGuy,
I’d like to add to this discussion and share some more information about the recording customer refunds and payments.
I read through the whole thread, and I want to ask a few more information about your concern. When you say you received the reimbursement from a customer, how did you record it in Quickbooks? Also, what Quickbooks version are you using? Any additional details you can provide will help me provide you with the best resolution for your concern.
Typically, when you receive a customer payment, it automatically applies/post the payment to the Income account associated with your products/services. You can check the account by opening the item. Here's how:
In regard to your reimbursement question, if you are the one who refund your customer, QuickBooks take this as an expense/money-out transaction. To know more about refunding customers, please check out these related articles:
I'll keep an eye on this post for your reply. Please let me know by adding a comment below. I'm always here to provide answers. Have a great day!
Sorry to tack on to the end of this thread but a similar question - Is there a way to get the markup to integrate with the item? Currently if I add an item that item gets added at cost, then a second line item shows up that says % markup for the first item.
Can you clarify what you mean by a markup? When you say a second line item "shows up that says % markup for the first item", what do you mean by this?
No worries, sorry I was not more clear the first try - I enter the bill from our vendor for say "postage" for $10 click the billable box and add 5% markup. When I go to invoice the client, I add the "postage" expense for $10 to the invoice, a second line item appears that says 5% markup on postage $.50 for a total invoice of $10.50. Does that make sense?
Thanks for clarifying those details, Becky. I get you now.
When you add a billable expense to your transaction, this allows for the additional markup percentage to be calculated on your product. There's no way for this to be shown in the same line as your product/service, as this is a charge outside the normal price that's been established for the inventory item.
I hope this answers your question. Cheers!