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Active Member

Reimbursement on invoice

Hi, this may be a basic question but thank you in advance. 

I am a freelancer and my client asked me to add my reimbursements to my service invoice as a separate line stating that it’s an reimbursement.

I’ve heard before that service and reimbursement shouldn’t be on the same check as it may cause tax issues. 

Will it be ok as long as it’s clearly stated that a portion of my check is an reimbursement, or should they be on separate checks? 

In other words, what is the most appropriate response to my client who requested to have my service and reimbursement on one invoice? 

3 Comments
QuickBooks Team

Re: Reimbursement on invoice

Hello, Donuts123. 

 

Refunds are not included in tax calculations so there’s no need to record it in QuickBooks Self-employed. Though, if the payment was recorded, you can delete or exclude a transaction. Here’s how:

  1. Click Transactions from the left menu.
  2. Select the involve bank account to locate the payment.
  3. Once located, click the right arrow on the right part of the screen.
  4. Select the Exclude this transaction box or Delete.

Please drop by again if you require further assistance.

Active Member

Re: Reimbursement on invoice

Hi thanks for your response. So just to clarify, there is not problem in having my service and reimbursement on one invoice? 

QuickBooks Team

Re: Reimbursement on invoice

Hi there, Donuts123.

 

I'd like to add to this discussion and ensure you're able to record these transactions properly in QBSE.

 

Yes, it won't be a problem to have both of your service and reimbursement on one invoice. Since invoices recorded in QBSE are mainly for recording purposes.

 

However, to add them to the calculation of your Estimated taxes, you'll need to enter them manually as separate transactions. Here's how you can do it:

  1. Click Transactions in the left navigation menu.
  2. Select Add transaction.
  3. Enter the Date, Description, and Amount.
    - You can start with the Service, just make sure to enter the correct details for this transaction.
  4. Click the Select a category hypertext.
  5. Search and choose the appropriate category.
  6. Click Save and repeat these steps for the reimbursement.

If you're unsure as to what category you should select, then you can reach out to our AnswerXchange Community forum. They can help you select the category that will best match your transactions.

 

That should get you going in the right direction. Please let me know if there's anything else I can do for you. Wishing you all the best!