How do I record a customer expense reimbursement?

Fletcher Mudryk · ‎July 31, 2019

I have a client that when they invoice their customer, also have to record a fixed insurance expense paid by the customer. I want the actual gross revenue to record as income with the associated GST, then have the expense post with the ITC. Is this possible to record as one transaction on the Sales Invoice? Example: Accounts Receivable 149,344.13 DB Revenue 143,702.50 CR Insurance 1,470.00 DB GST/HST Payable (GST on Sale) 7,185.13 CR GST/HST Payable (GST on Purchase) 73.50 DB

Rochelley · ‎July 31, 2019

You can do this by creating an Item for your Insurance Expense which is linked to the G/L account of your choice. For this purpose, I always use the Item Type 'Other Charge'. You will get a warning that 'This item is associated with an expense account. Do you want to continue?'. Click OK. Then enter your expense amount on the invoice with a negative sign.

Your GST nets out to the correct amount. If you want to check the GST ledger, you'll note that you have the correct amount going to GST collected, and also the correct amount to the GST ITC's.

Good luck!

Topics

Training

Community

Resources

How do I record a customer expense reimbursement?

How do I record a customer expense reimbursement?

Need to get in touch?