Invoicing customers for billable expenses

alect · ‎August 09, 2020

We incur and pay for some expenses on behalf of customers and then bill them for these on their monthly invoices. We are entering theses expenses at time of incurring them, and then they appear when we do the customer's invoice. But as soon as we add the expense to the invoice, it has no product/service and once we choose the product/service it deletes out the details of the expense and we have to re enter everything manually. This is not sustainable and prone to errors. Why does this happen and how do we stop it from occuring?

AlexV · ‎August 09, 2020

Good day, alect.

Let me help you with converting billable expenses into an invoice.

The reason why there's no product or service when you add the expense is that you used the category option. You'll want to open the bill or expense you created and add the details on the Item details section.

If you can't see this section, follow these steps on how to turn it on:

Go to the Gear icon and select Account and settings.
From the Expenses tab, select the Bills and expenses.
Turn on the Show Items table on expense and purchase forms.
Click Done.

Then, you can redo the expense to correct it and add it back to the invoice. I've added some articles for more details:

I'll be here if you have more questions. Wishing you all the best!

View solution in original post

AlexV · ‎August 09, 2020

Good day, alect.

Let me help you with converting billable expenses into an invoice.

The reason why there's no product or service when you add the expense is that you used the category option. You'll want to open the bill or expense you created and add the details on the Item details section.

If you can't see this section, follow these steps on how to turn it on:

Go to the Gear icon and select Account and settings.
From the Expenses tab, select the Bills and expenses.
Turn on the Show Items table on expense and purchase forms.
Click Done.

Then, you can redo the expense to correct it and add it back to the invoice. I've added some articles for more details:

I'll be here if you have more questions. Wishing you all the best!

alect · ‎August 09, 2020

Thank you Thank you Thank you. Such a small thing but so annoying and such a time waster for me. And you've solved it!!!

ChristieAnn · ‎August 09, 2020

Hi there, alect.

You're very welcome. It's glad to know that your issue was resolved. I'm just a few clicks away should you need anything else. Have a lovely day.

Sean68 · ‎February 03, 2021

I have this same issue, and I see how the solution you posted works. It solves the issue presented, but then creates a new on.

If I do as you say, then the product or service shows up on the invoice in that column as desired, but then you lose the ability to categorize the billable expense in the correct expense account, like Cost of Goods Sold: Promotional Items.

Why is QBO set up like this? It is extremely frustrating.

Thanks in advance for your help.

MJoy_D · ‎February 03, 2021

I can provide additional information about billable expenses in your invoices, @Sean68.

In QuickBooks Online (QBO), the Category Details refers to a selection of an account from the company chart of accounts to categorize expense type (or non-expense type).

Whereas the Item Details mainly refers to the items from products and services list like the purchase of inventory items by quantity and unit price. It may also help to use for some job costing purposes when job/project cost reports.

For more information about managing Accounts Payable transactions, see this article: Enter bills and record bill payments in QuickBooks Online.

I'm always here if you have questions about your account. Let me know in the Reply section below. Take care and have a wonderful day!

Sean68 · ‎February 03, 2021

Thanks for your help.

I have found that QBO just cannot do what I want correctly.

I have graphic designer work and dropship print jobs, neither of which are inventory, but both are billable expenses.

I need to categorize these as COGS and can only do so in the Category section where I can specify the expense account.

Doing that leaves the Product/service column empty on my invoices and also leaves me unable to run a report for a client showing them what they spent on printing, graphic design, video production, or anything else. I do not have inventory, yet what I sell are indeed products and services.

Quickbooks just seems designed to not allow naming a COGS item as a product or service. Very frustrating and I think I am moving to a different financial accounting product.

Thank you for trying to help me.

north_75 · ‎July 29, 2021

Hi, I was trying to do exactly the same. However, if I go into the Expenses tab in the settings it only allows me to change the Default bill payment terms and I do not see any other option. I guess this is not part of my subscription?

JenoP · ‎July 29, 2021

Thanks for joining us here, north_75.

The Billable Expenses feature is available in QuickBooks Online Plus.

If you're using Simple Start or Essentials, let me help you upgrade your account to get this subscription. Here's how:

Go back to the Gear or Settings ⚙ and select Account and settings.
Proceed to the Billing & Subscription tab.
Make sure your payment info is up-to-date.
Go to the QuickBooks Online section, then clickUpgrade your plan.
Look for QuickBooks Online Plus, then select Choose plan.
Follow the on-screen steps to upgrade your plan.

Once done, proceed to the Expenses tab and activate the Billable Expenses feature. You can use this article as a guide: Enter Billable Expenses.

Let me also share a couple more articles for additional guidance and reference when using this feature:

Don't hesitate to reach out to us again if you need anything else. I'd b happy to get back here and help you again.

lmwill33 · ‎January 25, 2022

When in create an invoice for billable activities, the description field on the invoice is blank. I've checked all these settings and they seem to be fine. I can select a different item once the invoice is created, and the description appears. I can then switch back to the original item and the description appears. How can I set it up so when I create an invoice from billable items the description appears automatically? I did a chat with a support person, and they had no suggestion.

ChristineJoieR · ‎January 25, 2022

I’ve got you covered, @lmwill33. I’m here to provide details about the Description field within invoices.

This feature is currently unavailable in QuickBooks Online (QBO). However, by providing us with feedback, this will help us enhance our product.

Here’s how:

Go to the Gear section.
Select Feedback
Enter your feedback and suggestions for us.
Click Next.
Choose Feedback for the Category.
Click Send Message.

Your recommendation will be sent straight to our developers, who will take it into account when developing future QuickBooks features.

You can also use this link to offer your suggestion: Customer Feedback for QuickBooks Online.

In addition, I added an article that can serve as your guide to enter billable expenses.

You can always reach us for more concerns and clarification on QuickBooks. Have a fantastic week!

Topics

Training

Community

Resources

Invoicing customers for billable expenses