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Rochelley
Level 8

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When you use Time and Expenses on an invoice that has been pulled from a Bill that you marked as 'billable' with an ITEM, it will always ONLY reimburse the cost or expense used on that Bill - thus the invoice populates with the words Total Reimbursable Expenses.  You would only use that when you are simply being reimbursed for expenses.  To pick up your PST in this instance you would have to change the amount on the actual invoice that you've pulled the expense line into to cover your laid down cost of PST.

 

However, you can direct this entire amount towards Income, rather than your COGS account.  It is all in the way you set up your item.  In order for your amount in this invoice transaction to NOT go to COGS, you have to go to your Item in the Item List, and check off the box in the middle that says:  This item is used in assemblies or is purchased for a specific customer:job.  As soon as you've done that, the other half of the window pops open with Sales Information on the right.  Here is where you enter your income account.  the Purchase Information should stay the same, your COGS account.  Now when you use this Item in a bill transaction, and create an invoice from that bill, the entire amount in your invoice will go to Sales, not to reimburse COGS.  It is currently only reimbursing COGS because you don't have the Sales side of that item set up yet.

 

What your item generally looks like when set up only one account:

Item with Cost account only.PNG

 

What your item looks like when you select This item is used in assemblies or is purchased for a specific customer:job.

 

Item with Cost and Inome acct showing.PNG

 

When you use Time and Expenses on an invoice that has been pulled from a Bill that you marked as 'billable' on a line in the Expense tab, it will still reimburse only the cost or expense used on that Bill, and ONLY what you indicate as 'Markup' goes to the income account designated at the time.  For whatever reason, this one pulls in the PST as well; I really don't know why the ITEM tab doesn't do it the same way.  Another one of Intuit's foibles :)

 

This is just the way it is designed.  If you are in the construction business and are billing Time & Materials, this would the only time I think it would make sense to use the 'billable' flag on the Expense tab on the bill, as it usually has been pre-arranged with your customer that they will see the time that you are billing, as well as the cost of materials + whatever % markup you agreed upon.

 

Another way to bill your clients would be to not use the 'Billable' flag on bills.  Rather, enter your customer name:job on each line.  If you want to know what all your costs are for a particular client/job, then you need to implement job tracking and/or class tracking.  Then you can pull a report for all your COGS on that job/class i.e. Profit and Loss by Job report, and determine all your costs on the job so far and what you are wanting to invoice for the sale.  The PST will show up as part of your costs as long as you do not have Track tax on purchases separately checked in your PST tax vendor record.

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