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Intuit
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Enter billable expenses

Find out how to record billable expenses in QuickBooks Online Plus.

A billable expense is an expense you incur on your customer’s behalf when you perform a work for them. You can easily record and track billable expenses so your customer can reimburse them when they receive their invoice.

Before you start entering billable expenses, you need to set it up for your company.

Turn on billable expense

  1. Go to Settings ⚙, then select Account and Settings.
  2. Go to the Expenses tab.
  3. From the Bills and expenses section, select Edit ✎.
  4. Select the following:
    • Show Items table on expense and purchase forms
    • Track expenses and items by customer
    • Make expenses and items billable
  5. (Optional) Set up the following:
    • Markup rate
    • Billable expense tracking
    • Sales tax charge
    • Bill payment terms
  6. Select Save, then Done.

Once you turn on billable expense tracking, you can now record billable expenses.

Enter a billable expense

  1. Select the Create icon ⨁.
  2. Select the transaction (Bill, Expense, or Check) you want to create.
  3. Select the payee and the expense account for the transaction.
  4. Enter the description and amount of the expense, then select the Billable checkbox.
  5. From the Customer column ▼ drop-down menu, select the customer you want to bill for this expense.
  6. (Optional) Enter or make sure the markup % is correct, then select the Tax checkbox or choose a tax agency if you want to charge tax.
  7. Select Save and close.

    You see this error when an income account isn’t linked to the expense account you chose. To fix this:

    1. Go to Settings ⚙, and select Chart of Accounts.
    2. From the Action column ▼ drop-down menu of the expense account, select Edit.
    3. Select the Use for billable expenses checkbox.
    4. From the Income Account ▼ drop-down menu, select the account you want to link.
    5. Select Save and Close.

Add billable expenses to invoices

To reimburse the cost, link the billable expense to your customer's invoice.

  1. Select the Create icon ⨁.
  2. Select Invoice.
  3. From the Customer ▼ drop-down menu, select the appropriate customer.
  4. From the Add to Invoice window at the right, select Add on the billable expense you want to charge to your customer.
  5. Select Save and close.

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