Hi everyone, I started using QBO plus for a year in 2019 and downgrade to Essential in year 2020. When I started I created a reimbursable expense (expense account) for the items or expenses that I bought such as: rugs, kitchen utensils, bulbs, property supplies like towels, beach chairs etc.) and set up billable expense income (income account) to track the reimbursable expenses & income from customer. Essential plan has no box that you can check billable expense anymore when I have reimbursable expenses that will be bill to customer.
I continued using the billable expenses income manually when I invoice the customer -- is this correct?
I think there is an impact on reimbursable expenses account when I received payment from customer it only pays the invoice but it did not wipe out the reimbursable expenses.
Any suggestion on what is best account type, really appreciate your help...I
Income should never point to the expense account that is used to offset it, so using income for what the customer pays you is correct. On the P&L income is reduced by expense, so if they are equal there is no increase in the bottom line.
I was wondering and confused because when I invoiced a customer using a billable expense income account, the open invoice that I created is not showing on the balance sheet report but it's showing on A/R summary report. Is there something I am missing?