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How do I record a payment made by a customer for an expense that I paid and them subsequently invoiced them?

 
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QuickBooks Team

How do I record a payment made by a customer for an expense that I paid and them subsequently invoiced them?

Hi there, 

 

If you're passing on the cost of your expense to your customer, it's important to record the entire transaction trail from start to finish in your books. QuickBooks Online helps you along the way, making the process simple and straightforward. I'll explain the best course of action below. 

Step 1: Record your expense.

 

If you've paid for an expense before invoicing your customer for the costs, you'll simply create the expense first, then invoice your customer afterwards. To do this, click the + New icon, then select Expense. Enter the correct information, then click Save

 

Step 2: Invoice your customer and receive payment.

 

Now that you've recorded your expense, you can invoice your customer in the amount of the expense by creating a non-inventory item. To do this, follow these steps:

 

1. Click + New

2. Select Invoice

3. Enter the customer and other important information. 

4. From the Product/Service drop-down menu, click + Add New

5. Select Non-Inventory

6. Enter a name for this non-inventory item, such as the name of your expense purchase (e.g. Rental equipment).

7. Click Save and Close

8. If you desire, you can enter a description on your invoice to explain the item further (e.g. Cost of renting carpet cleaning machine from Canadian Tire). 

9. Enter the cost, and specify the taxes. 

10. Click Save and Close

 

Next, record their payment.

 

1. Click Receive payment from the Invoice screen.

2. Enter the amount and payment method. 

3. Click Save and Close

 

That's all there is to it. If you have any other questions about the process, please contact our tech support team

Have a great day!