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acalbarico
Level 2

Quickbooks essential plan for billable expenses

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 

 

3 Comments 3
Rustler
Level 15

Quickbooks essential plan for billable expenses

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.

acalbarico
Level 2

Quickbooks essential plan for billable expenses

Thank you Rustler, 

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? 

Thanks a lot  for your all your help.

MaryLandT
QuickBooks Team

Quickbooks essential plan for billable expenses

I'm here to provide some learning about the data you see on the Balance Sheet report and A/R Aging Summary, acalbarico.

 

The invoice will show up on the Balance Sheet report under Accounts Receivables. See the attached screenshots below for your visual guide.

ar.PNG ar1.PNG

 

For you to verify the posting account of the invoice, you need to run the transaction journal report. To do so, simply open the invoice, click More, then Transaction journal.
transaction journal.PNG transaction journal1.PNG

 

Also, there are some things you should know when comparing the Balance Sheet report and the A/R aging summary report:

  • You need to select a Report date for the Aging Method on your A/R aging reports for the Total Accounts Receivable to match on both the Balance Sheet and A/R aging report.
  • You need to specify the correct Aging Method on the A/R aging report when you compare these two statements.

Learn how to get the most out of your financial reports through this link: Customize reports in QuickBooks Online.

 

Stay in touch with me if there's anything else I can help you with today. I'll be around to provide the information you need.

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