Employee expenses reimbursed by client

Hello Sdrummond, 

Welcome to the Community page, 

So you can record the expense from the directors account if you don't have the personal bank account connected in Quickbooks. Then when its payed then you can record the money going out from like petty cash if you want and then just record the money being transferred from the directors account to petty cash or just record the payments from the account you recorded the actual purchases. 

Hi Ashleigh,

I have my business bank account linked so the transaction where i have paid this to my personal account is in the transaction list to be reviewed and categorised. If using the directors load account do i need to assign the money recovered from the client, then pay it to myself so the net is zero?

Thanks

Steve

Thank you for posting in the Community, @sdrummond. 

I'll be happy to share more info about billable expenses. 

If the expense is billable it will automatically offset the in the report once the customer makes a payment. You can use billable expenses to record the money you recovered from your client. 

Here's how: 

1. Go to + New, then select the Bill. 
2. In the Account or Product/Service field, choose the expense account or product/service for the item or service you purchased for the customer.
3. Enter the cost of the items in the Amount field.
4. If the cost is less than the total amount of the transaction, enter a separate Detail line for each amount.
5. Enter a Description of the items.
   Note: This description will appear on the customer's invoice.
6. Select the customer to be billed for the item or expense from the Customer drop-down.
7. Select the Billable checkbox.
8. Enter a Markup percentage. If you need to charge tax for the item or service, select the Tax checkbox.
   Note: The Tax column becomes available if the Billable and Tax features are turned on.
9. Save the transaction.

Once you receive your customer's payment, you can record it in different ways: 

• Record your customer's invoice payment:
• By recording a Sales Receipt
• By making a Deposit

In all of these options, you may deposit the payment directly to your bank account instead of using the Undeposited Funds account. Just make sure to select the desired bank account on the Deposit To section.

Check this article for more information: Enter billable expenses. 

For other related articles you can use in the future, you may also refer to this helpful link: Income and expenses for QuickBooks Online.

For more info, check out this helpful article which has more info on billable expenses. Let me know if you've got any questions. 

Hi, sorry for the delay in responding.

I don't have quickbooks plus so i don't have a billable expenses function. I think i need to explain further.

I have a contract with Company A. They sent a team of guys offshore and i bought some items for them which I added on the monthly invoice. I invoiced for £1000 for my time, plus £200 for the items i bought (example figures only), with VAT added on top. Company A paid the invoice for £1200+VAT = £1440 into the business account.

I have transferred to £200 to my personal account and it now appears in the banking section. How do i categorise this without it affecting VAT or paying PAYE tax on it. I am an engineer, not an accountant, so need this step by step as it is melting my head.

Thanks :)