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alect
Level 3

Invoicing customers for billable expenses

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?
Solved
Best answer August 09, 2020

Best Answers
AlexV
QuickBooks Team

Invoicing customers for billable expenses

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. item details.PNG

 

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

  1. Go to the Gear icon and select Account and settings.
  2. From the Expenses tab, select the Bills and expenses.
  3. Turn on the Show Items table on expense and purchase forms.
  4. 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

6 Comments
AlexV
QuickBooks Team

Invoicing customers for billable expenses

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. item details.PNG

 

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

  1. Go to the Gear icon and select Account and settings.
  2. From the Expenses tab, select the Bills and expenses.
  3. Turn on the Show Items table on expense and purchase forms.
  4. 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

alect
Level 3

Invoicing customers for billable expenses

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
QuickBooks Team

Invoicing customers for billable expenses

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
Level 1

Invoicing customers for billable expenses

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.

MaryJoyD
QuickBooks Team

Invoicing customers for billable expenses

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
Level 1

Invoicing customers for billable expenses

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.