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How to enter billable expenses

A billable expense is an expense that you incur on your customer's behalf when performing work for them, and for which you can be reimbursed by your customer.

QuickBooks Online Plus helps you record and easily track your company's billable expenses from the Bill, Expense, or Cheque window when you enter a transaction.

Before you can start entering billable expense, you need to set up Billable Expenses option first.

Turn on Billable Expenses

Turning on Billable Expenses preference activates additional features like tracking expenses and items by customer.

  1. Select the Gear icon on the Toolbar, then Account and Settings (or Company Settings).
  2. From the left menu, select Expenses.
  3. In the Bills and expenses section, select the pencil icon to open the fields for editing.
  4. Ensure that the following items are checked:
    • Show Items table on expense and purchase forms
    • Track expenses and items by customer
    • Make expenses and items billable
  5. (Optional) Set the markup rate.
  6. (Optional) Change the income account you wish Billable Expenses to affect. By default, Billable Expense Income is selected.
  7. Select Save, then Done.

Enter a billable expense

  1. Create an expense transaction on the Bill, Expense, or Cheque window.
  2. In the Account or Product/Service field, choose the expense account or product/service for the item or service you purchased for the customer.
  3. Enter the cost of the items in the Amount field.
    If the cost is less than the total amount of the transaction, enter a separate Detail line for each amount.
  4. Enter a Description of the items.
    Note: This description will appear on the customer's invoice.
  5. Select the customer to be billed for the item or expense from the Customer drop-down.
  6. Select the Billable checkbox.
  7. Enter a Markup percentage.
  8. If you need to charge tax for the item or service, select the Tax checkbox.
    Note: The Tax column becomes available if the Billable and Tax features are turned on.
  9. Save the transaction.

The expense is recorded as billable to the customer you specified.

Add billable expenses to invoices

To reimburse the cost, link the billable expense to your customer's invoice.

  1. Select the Plus icon (+) under the Toolbar, then Invoice.
  2. In the Choose a customer field, enter the customer name. Open billable expenses will populate the right side of the screen.
  3. Select Add for the billable expense you like to include in the Invoice.
  4. Save the transaction.