Journal Entry for Damage during Service

Try not to use journal entries, QB is not designed as a journal entry type of program and often the journal entry does not show in reporting.

Is the payment and use the shop expense account as the expense for the payment

Let me help you from here, @dlow123.

To ensure you can record the reimbursement for the customer, you can use Billable Expense transactions.

As also suggested by Rustler, you can try not to use journal entries. Instead, record the reimbursement as an expense.

Let's start by turning on the Billable Expense in your QuickBooks Online account.

Here's how:

1. Click Settings ⚙, and choose Account and Settings.
2. Select the Expenses tab.
3. Look for the Bills and expenses section, click Edit ✎.
4. Turn on the following:

• • Show Items table on expense and purchase forms
  • Track expenses and items by the customer.
  • Make expenses and items billable.

1. Below are optional. Set up the following:

• • Markup rate
  • Billable expense tracking
  • Sales tax charge

1. Bill payment terms.
2. Click Save.

You can now enter a billable expense. Follow the steps below:

1. Go to + New.
2. Select Expense.
3. Choose the payee.
4. Under the Category column, choose the expense account you want to use.
5. Enter necessary details, then tick the Billable checkbox.
6. In the Customer column, choose the customer.
7. Click Save and close.

Refer to this article for more information: Enter billable expenses.

Additionally, here is an article you can use in reconciling an account: Reconcile an account in QuickBooks Online.

If you have more questions about recording a billable expense in QuickBooks Online, feel free to leave a comment below. We'll get back to you as soon as we can.