We are a golf course that is subcontracted by an HOA to maintain the subdivision.
We are paid a monthly maintenance fee for this service. We have this setup as a revenue account.
How do post a payment to that revenue account? Just to make sure i am doing it correctly.
Next I have to purchase items to fix the irrigation system in the subdivision. Per my corporate office the items must go to a COST of Goods Sold account. I have that account set up. Now this is where I need some help. How do I post these billable expenses to the cost of goods account? Do I have to create a bill in QBs? I can't figure this out.
Then my office told me that I need to handle the reimbursement payments for these expenses by putting them in the same revenue account as we have for monthly services. That way they will wash out in the income section. How do you enter the payments into the revenue account?
Thank you for any assistance that you can give me.
I’m happy to see you in the QuickBooks Community, dbackpro.
Based on the details mentioned, you can use the Invoice feature to record the revenue payment and then create a bill to post the billable expense. To easily track the transactions, you’ll have to turn on the Time & Expenses feature first.
Since the revenue account is already set up in QuickBooks, create an invoice each month to record the maintenance fee. While you’ll have to enter a bill for the billable expenses.
Just make sure the items are tracked to the Cost of Goods Sold account. If you haven’t created the goods, let’s go ahead and add them.
To create the transaction:
Check out the steps below on how to apply the billable expense to the customer invoice.
You can refer to the Record a payment for an invoice article to enter the payments into the revenue account.
If you need further assistance with any of these steps, click on the Reply button and post a comment. I'm always here to help.