How do I record counter invoice payments where my customer deduct my costs to them automatically in the Remittance and provide me with their invoice at the same time?

I've got you covered, gary83.

Let's record the transactions as billable expenses in QuickBooks Online. Before proceeding, let's turn on the tracking feature. I'll guide you how.

1. Go to the Gear icon and then select Account and Settings.
2. Select the Expenses tab.
3. From the Bills and expenses section, select Edit ✎.
4. Turn on the following:
   • Show Items table on expense and purchase forms
   • Track expenses and items by customer.
5. Select Save.

Then, follow the steps below to bill a customer for an expense.

1. Go to + New.
2. Select Expense.
3. Choose the payee.
4. In the Category column, select the expense account for the transaction.
5. Enter the description and amount of the expense, then select the Billable checkbox.
6. In the Customer column, select the customer you want to bill for this expense.
7. Select Save and close.

Once done, you can now reimburse the cost by linking the billable expense to your customer's invoice.

1. Go + New.
2. Select Invoice.
3. In the Customer ▼ dropdown menu, select the customer you created a billable expense for. This opens the Add to invoice window.
4. Select Add on the billable expense you want to charge to your customer.
5. Click Save and close.

For further guidance, please see this article: Enter Billable Expenses.

Additionally, learn how to receive and record invoice payments. This ensures all the transactions are recorded and managed accurately in QuickBooks.

Please feel free to leave a comment if you have any other questions about managing your transactions. I'm always here to help. Take care.

Hi there,

these are not my billable expenses but my customer's (DPD Group Ltd) costs to me.

They are for 1) van Hire, 2) Insurances and 3) business fuel card.

They provide me with a separate VAT invoice for the above and deduct the total amount from the Remittance, all on the same day (4 weekly).

I  also receive a DPD self generated VAT Invoice for my total stops completed and bonuses etc and I then produce my own QB Invoice based on this amount. So my Invoice total is obviously higher than the actual DPD Remittance. How do I record this in QB?

Hi gary83!

I appreciate the additional details. There are instances where a customer will also invoice you for the services they provide and agrees to offset your balances. I'll guide you on how to handle this.

Since your customer is also sending you invoices, you can consider them as a supplier/vendor. Thus, you will add them as a Supplier in QBO. When you do this, please add a slight difference in their supplier profile's name from the customer profile so you can save it. You can add a middle name or a prefix.

Next, record the transactions as they are. If you invoice them, record an invoice in their customer profile. If they send you invoices, record them as bills in their supplier's profile. If there are payments/remittances, record them as they are.

Now, if both of you agree to just offset the balance they owe to the balance you owe, you can create a barter transaction. Please follow the detailed steps in this article: Record a barter transaction.

Let me know if you have other questions about your scenario. I'll be more than happy to help you again.

Hi and thank you for your response.

I have tied this a few times now but I keep coming up with the same problem. In settings/chart of accounts/NEW I do not have the option of "BANK" in the drop down menu?

How do I add "Bank" as an option in "Account Type"

Gary

Hello Gary 83, thanks for coming back to us so instead of the bank one that doesn't appear any more you would select the one that says cash at bank and in hand instead.