"My advice was only meant to reflect what to do in cases of true reimbursements.
The original post asked specifically about unmarkedup subcontractors."
Let's pretend you sell Computer hardware as you try to repair someone's computer while you are setting up New software for them. You offer to buy it and then Sell At Cost = that is Not reimbursement. That is Sales. And if you are supposed to charge sales taxes on hard goods, that further helps you understand this is Sales, not reimbursement.
I can even sell as Lower Than Cost, which happens as Retail = Loss Leader, to get you to shop in the store and buy other goods. That still is Sales.
You are confusing Gross and Net. The IRS wants you to report Gross.
If you truly had "reimbursement" such as, you and I decide to attend a conference, and you offer to Charge the airfare to your own credit card and I will pay you back, that Isn't part of the business operation; you are not a travel agent; and you don't post my share to expense. You would post it as Other Current Asset = Loaned me that amount.
That's why washing away Expense with "negative expense (really income)" is not correct bookkeeping. Read my Robot example, again. It will make more sense, the second time around.
