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Billing customers for expenses

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?

15 Comments
Active Member

Why would some billed items still appearing as unbilled?...

Why would some billed items still appearing as unbilled?  I'm using Quickbooks Desktop Premier Contractor Edition.  (Perhaps changing the Item on the bill after an invoice has already been prepared is breaking the connection?)
Not applicable

Hi Cameron Yes!  This is the beauty of Quickbooks - when...

Hi Cameron

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! : )

Not applicable

I am recording a credit card expense that will be reimbur...

I am recording a credit card expense that will be reimbursed by a client. What account do I reference for this? Accounts Receivable or Maintenance? (it is a maintenance exp for the client)
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I have figured out why I am unable to bill expenses to cu...

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.

Established Member

Is this true?  If so... this is terrible news... I'm tryi...

Is this true?  If so... this is terrible news... I'm trying to figure out what account I put the expense under...
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Hi Cameron Glad you figured it out! Remember your time s...

Hi Cameron

Glad you figured it out! Remember your time spent on your bookkeeping could be better spent earning money or creating new business for yourself. Always count that cost! Have a great day! : )
Not applicable

Hi - I have a similar question. I purchase items frequent...

Hi - I have a similar question. I purchase items frequently to bill to customers. I enter the purchase into Quickbooks - date, memo, amount etc. The I click "edit" and mark it as billable to the customer. I am wondering if there is a shortcut for this. Is there a way to bulk edit transactions with a certain memo description as billable to a particular customer?
Experienced Member

Re: Billing customers for expenses

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.

Experienced Member

Re: Is this true? If so... this is terrible news... I'm tryi...

Yes, it is. I just found out myself.

Established Member

Re: Hi Cameron Yes! This is the beauty of Quickbooks - when...

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???

QuickBooks Team

Re: Hi Cameron Yes! This is the beauty of Quickbooks - when...

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:

QuickBooks Online:

  1. Click the Gear icon.
  2. Choose Products and Services.
  3. Find the item and click Edit.
  4. In the Product/Service information page, verify the Income account field is correct.

QuickBooks Desktop:

  1. Go to Lists.
  2. Hit Item List.
  3. Double-click to open the item.
  4. Look at the Account or Income Account field and check if it's using the correct income account.

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!

Active Member

Re: Hi Cameron Yes! This is the beauty of Quickbooks - when...

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.

QuickBooks Team

Re: Hi Cameron Yes! This is the beauty of Quickbooks - when...

Hello Becky, 

 

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?

Active Member

Re: Hi Cameron Yes! This is the beauty of Quickbooks - when...

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?

QuickBooks Team

Re: Hi Cameron Yes! This is the beauty of Quickbooks - when...

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!