Is it possible to invoice multiple accounts on the same invoice?

Anonymous · ‎April 15, 2019

I set up two accounts (one is an income account and the other is for reimburseable expenses) and used them in my invoice. When I reviewed the posting ledger, both amounts were posted to the income account instead of being separated.

Rajanikanth · ‎April 25, 2019

Hi, KLS2

Yes, that is possible, but you need to select the appropriate accounts from the Chart of accounts to link the Items. Another available option is to use Billable expense when you create an invoice for the relevant customer a right drawer will appear to add Billable expense also you can add markup ( from company settings you can customise ) or override the calculated amount on the invoice, link the Billable expense and/or Markup income to an appropriate income account or use default accounts. Or if you opted to use reimbursable expenses on the invoice then select the appropriate Expense account as the income account from the chart of account to link the item same item need to be selected for Bills/Expenses and link the item as Expense account ( same Expense account used for the income account ) for the purchases account from the chart of accounts. Comment back for further clarifications.

Rustler · ‎April 25, 2019

Technically reimbursed expense only applies to an employee

You paid an expense, it was or was not for the customer. If it was you can make it billable to bring it to the customer invoice

what you are paid by the customer is income

on the P&L income is reduced by expense

income and expense is not posted to the same account

Rajanikanth · ‎April 26, 2019

Hi All,

As Rustler mentioned depend on the scenario in most situations you need to treat reimbursable expenses as income read the below article in both situations no effect to Sales taxes if you charge sales taxes.

Record reimbursed expenses as revenue.

Out-of-pocket expenses include such items as travel and entertainment and photocopying charges. If a customer agrees to reimburse you for these expenses, then you can record the reimbursed expenses as revenue. The underlying GAAP standard that addresses this issue is the Emerging Issues Task Force (EITF) issue number 01-14, “Income Statement Characterization of Reimbursements Received for Out-of-Pocket Expenses Incurred.”
The EITF stated that you report the payments as revenue. The main reason they gave for doing this was that customers payments for shipping and handling costs are already treated as revenue, and this is basically the same situation.

And to be fair to the EITF, they made one of those “on the other hand” points, which was that the company is earning no profit on these expenses, and that tends to point toward treating them as an expense reduction rather than as revenue.

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Is it possible to invoice multiple accounts on the same invoice?