How should I record reimbursements made for my clients that I receive from their state held funds?

Forum|Forum|6 years ago
April 29, 2020
1 reply
3 views

I work for an agency that works with developmentally disabled adults. We sometimes purchase items the client wants to buy and then submit the receipts to the State agency to get reimbursed for the purchase. What's the correct way to record these transactions. If I create an invoice for the funds doesn't that count as income when it really isn't? We are really just the middle guy that the client's own money is being passed through. But since I have a recorded expense for the purchase I have to show the incoming funds somehow, right?

Thank you.

QuickBooks Desktop

Ashley H

Level 4

Welcome to the Community, @Binman.

Once you've recorded the transaction as an Expense, then you can show the transfer as a Sales Transaction. It will balance out your records and shows the money movement. This can be in the form of a Sales Receipt or Invoice, depends on how the customer pays you for the Items. A Sales Receipt is a document that provides customers with a detailed description of the Products or Services that they have purchased from you. If you receive a payment from a customer at the time of sale, then you'd create this type of transaction. An Invoice is to record sales transactions from customers who make no or partial payment during the time of the sale.

I recommend reaching out to your accountant for the best advice on what type of transaction to create if you're still needing assistance.

I'm always here if you have any additional questions. Have a great rest of your week.

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