Well, @Rustler and @qbteachmt, then I guess I'm mystified.
I am not an accountant, so I can only speak to what I've been shown by others.
However, I'm confused as to why Quickbooks would allow, and even *facilitate*, reimbursements from clients of paid subcontractor fees and/or job materials, and pass through expenses to vendors in general, if this was not a completely kosher practice?
I'm in restaurants, so the only time we use this kind of thing is in the kind of scenario I described -- ie: doing a catering gig and passing along third party vendor expenses so the client can pay one bill rather than paying all vendors separately... especially when acting as the default 'coordinator' for all said subcontractors.
However, in my past life, I did some work for a landscape designer. Her subs *and* items she purchased from vendors under her wholesale account on the client's behalf were billed this way as well, with only her mark-up (if any) going toward income.
Again, my question is, why would Quickbooks facilitate, even BAKE IN something that isn't a kosher practice? In all the scenarios I have described, where the box was checked to "Bill" a client or customer for an expense, *never* did I have to choose where that particular part of the payment to me would be booked. QB *automatically* assigned it to whatever account the original reimburseable expense was hitting. In addition, they specifically *restricted* using the feature only to expense accounts, not to anything booked to cost of goods sold.
Any ideas? I can't think of another reason for that kind of functionality...
