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how to better bill member clubs so that I can isolate pass-through expenses?

I am the treasurer for a soccer association with several member clubs. The association has two types of expenses: 1 - expenses paid for out of annual revenue. These are "true" expenses. 2 - expenses that are passed through to the member clubs, who reimburse me. For example, I receive a bill for all of the clubs for $400, and then I bill each club for their share. They pay, and it's all good. Except I haven't figured out a good way to isolate this activity in QuickBooks. Can anyone help me figure out how to separate the true expenses from the pass-through activity? Please let me know if you need more information to answer the question. Lori
2 Comments
Senior Explorer ***

Re: how to better bill member clubs so that I can isolate pass-through expenses?

Have you thought about setting the clubs up as customers? It sounds like this would let you accomplish everything you're describing.

Moderator

Re: how to better bill member clubs so that I can isolate pass-through expenses?

Hello LoriG,

 

Adding the club members as customers is good advice. Once they are added, you'll then create expense and billable expenses. 

 

For the true expenses, you simply click on the Plus icon and choose Expense. Choose the customer name, add an expense account, enter the amount, and click on Save and close.

 

For billable expenses, you'll have to turn on this feature in the company settings. Here's how:

  1. Click on the Gear icon.
  2. Choose Account and Settings.
  3. In the Expenses section, check the Make expenses and items billable box.
  4. Click on Save.

Create an expense that is billable to other club members. Then, create an invoice for reimburse. Let's make sure that you use the clearing account for it. A Clearing Account is an account you use to move money from one account to another account when you cannot move the money directly. This account normally has a balance of $0.00 because you always take out the same amount that you put in. 

 

Let us know if you have any questions. We'll be right here to help.