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Aasommltd
Level 2

How to change expense to bill

Hello All,

 

I’m very new at this and I need help:

I basically buy wines and re-sell them. I have been classifying my invoices from suppliers (purchasing of stock) as an “Expense” but I was meant to classify this as “Bill”. 

 

Is this bad? How can I change this? 

(I have already done the reconciliations)

 

Thank you Community 

Angelo

Solved
Best answer March 01, 2021

Accepted Solutions
Aasommltd
Level 2

How to change expense to bill

Hi ReyJohn_D!

 

Thank you so much for this, I really appreciate it very helpful! But if you don’t mind I can ask you, as Bill and Expenses I understand it better now but, basically that I do is wine broking so I buy wines when my clients requires me to, so my clients pays me and I pay the wines directly with my credit card. This will be registered as expense, and not as a bill (because I pay it right the wines right away), correct?

View solution in original post

Kristine Mae
QuickBooks Team

How to change expense to bill

Yes, you're right, Aasommltd. Let me share some information.

 

It will be recorded as an expense since you've paid it immediately.

 

You can either create a normal expense/check or record a billable expense. 

 

A billable expense is an expense you incur on your customer's behalf when you perform a service or pay something for them. You can track these expenses so your customer can reimburse them once they got the invoice. For more information, you can check this article: Enter billable expenses.

 

If you have additional questions, don't hesitate to let us know. We'd be pleased to help you. Take care!

View solution in original post

4 REPLIES 4
ReyJohn_D
QuickBooks Team

How to change expense to bill

Hello, Angelo!

 

I've got a couple of inputs about handling expenses and bills in QuickBooks Online (QBO).

 

First, you can use Expense if you've paid those purchases right away or have already paid them. If this is the case, there isn't a need to change your expenses to bills.

 

If you're going to pay those purchases later, you'll want to use Bill instead. For more insights, please check out this article: Difference between bill and expense in QBO.

 

Since you've already reconciled these entries, you can manually unreconcile them. You'll want to do this if you have a few transactions to edit.

 

Here's how:

 

  1. Go to the Accounting menu, and then select Chart of Accounts.
  2. Look for the account associated with the transaction, and then choose Account history.
  3. Select the transaction you want to unreconcile to expand the view.
  4. Choose the checkbox, and then keep selecting it until the box is blank. This removes the transaction from the reconciliation.
  5. Click Save.

 

If you need to start over from scratch, I'd recommend working with your accountant. They can help you undo the reconciliation in bulk to prevent messing up your books. If you don't have one, we can help you locate an expert near you through our Find-an-Accountant tool.

 

Once done, you're now ready to pay your bills to record them accordingly in QBO.

 

Comment back below if you have more questions about bills or expenses in QuickBooks. You can count on me always. Take care!

Aasommltd
Level 2

How to change expense to bill

Hi ReyJohn_D!

 

Thank you so much for this, I really appreciate it very helpful! But if you don’t mind I can ask you, as Bill and Expenses I understand it better now but, basically that I do is wine broking so I buy wines when my clients requires me to, so my clients pays me and I pay the wines directly with my credit card. This will be registered as expense, and not as a bill (because I pay it right the wines right away), correct?

View solution in original post

Kristine Mae
QuickBooks Team

How to change expense to bill

Yes, you're right, Aasommltd. Let me share some information.

 

It will be recorded as an expense since you've paid it immediately.

 

You can either create a normal expense/check or record a billable expense. 

 

A billable expense is an expense you incur on your customer's behalf when you perform a service or pay something for them. You can track these expenses so your customer can reimburse them once they got the invoice. For more information, you can check this article: Enter billable expenses.

 

If you have additional questions, don't hesitate to let us know. We'd be pleased to help you. Take care!

View solution in original post

Aasommltd
Level 2

How to change expense to bill

Hi Kristine Mae,

 

Thank you so much for this! 

 

Have a great evening.