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JellyBean_777
Level 1
posted
‎January 06, 2022 02:49 PM
last updated ‎January 05, 2022 7:49 PM

HELP PLEASE-----Sales tax and billing expenses

I need help because i am just completely drawing a blank on how to navigate this. I have a customer we do work for and on occasions purchase material for them and later invoice them for the material in order to get our money back. I already paid sales tax for the material purchased when i went to the store. I want to collect the gross amount and the sales tax paid  for their product from them. The issue that i am having is that I do not want to pay their sales tax... how do I do this without messing up my use and sale tax account showing that I owe money for taxes collected? 

 

Also, how do i show that I only need to include tax on the markup of the product?and only have the sales tax shows up on the markup of the product on my use & sale tax report. 

 

 

Note: We are contractors that do work for another contractor and on occasions they are not on job sites and we need to purchase the material for the job to get done. So the sales tax is still being collected for the material from the customer they bill at the end of the project. 

 

Please help!!!!! Any guidance on how to go about this would be wonderful!! Hopefully this all makes sense

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1 Comment 1
IntuitSheila
Level 8
‎January 06, 2022 03:30 PM

HELP PLEASE-----Sales tax and billing expenses

Hi JellyBean_777,

 

Thanks for asking here in the Community. You can use and create a billable expense in QuickBooks Online for a work you've done on behalf of your customers. This way, you can track the billable expense and, they can reimburse the work you've done when you invoice your customer.

 

Here's how to create a billable expense:

 

  1. Click on the + New button.
  2. Click the transaction type Bill, Expense or Check to create.
  3. Select the payee/supplier, and in the Category column, choose an expense account.
  4. Choose the GST code.
  5. Tick box for Billable, and select a customer under Customer column.
  6. Click on Save and close.

Once done, to reimburse the cost, create and link the billable expense to a customer's invoice. Here's how:

 

  1. Click on the + New button.
  2. Click on Invoice.
  3. Choose the customer name in the Customer menu, the billable expense will show on the right hand corner for you to Add to the invoice.
  4. Click on Add.
  5. Click on Save and close.

Not only you've recorded the purchase made for the material but, you've also captured the GST for both purchases and sales.

 

To learn more about billable expenses and GST in QuickBooks Online, you can check this articles below:

 

Stay in touch by dropping a comment below if you have other questions about QuickBooks Online. We'll be sure to get back and help you. Have a nice day!

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