how to enter bills from vendors with billable hours and billable expenses, and pay vendors, and then invoice customers for those billable hours and expenses

Thanks for reaching out to us in the Community, jflagle.

I'll share some details regarding your request.

If you haven't yet integrated your QuickBooks Time to QuickBooks Desktop, you'll want to check out these articles for the instructions:

• QuickBooks Time and QuickBooks Desktop Integration FAQs
• About QuickBooks integration preferences in QuickBooks Time

As for creating the vendor bills and making it billable, I'll lay down the steps below.

Let's start by setting up a Customer:Job for each of your jobs.

Here's how:

1. Go to Customers > Customer Center.
2. Click the Customer & Job drop-down menu and select New Customer. 
3. Enter the customer's info then go back to the Customer & Job drop-down. This time, select Add job.
4. Add the project's info and hit OK.

Next, go to Vendors > Vendor Center and if you haven't added the vendor, you can do so by clicking the New Vendor drop-down menu. Once you have the vendor added, we can enter a bill, check, or timesheet. Please make sure to assign all your expenses to the jobs or project by selecting the appropriate job in the Customer:Job column. This will automatically put a check mark on the Billable column.

To help you with the process, you can check Step 2 in this article: Track job costs in QuickBooks Desktop.

Finally, you can access various job or project reports by following these steps:

1. Go to the Reports menu.
2. Select Jobs, Time, & Mileage.

I'm also sharing these links to see the different reports in QuickBooks Desktop and how you can customize them:

• Understand reports
• Customize reports in QuickBooks Desktop

If you have more questions with the Vendors feature, or need help with other task in your account, please let me know and I'd be more than happy to guide you. Take care and stay safe.

RenjolynC -

thank you for the response.  i am already doing all of those things that you mentioned.  i track my hours with quickbooks time and sync with quickbooks.  that all works well.

my main issue is with my vendors (consultants) hours. 

i want to be able to run a report to see how many billable hours i have each month.  this report should include my hours that are currently entered in quickbooks time app (formerly tsheets), and all of my vendor (consultant) hours that are included in their monthly bill.  currenlty when i run this report reports > jobs, time & mileage > time by item    - this only shows my hours and not the vendors hours.

i beleive the problem is how how i enter the vendors hours/bills

1. i receive bill from vendor each month

2. i enter the bill in quickbooks.  vendors > enter bills. 

- all materials i enter under expenses tab, account is supplies - project adn then select billable and assign it to the customer:job. 

- all billable hours i enter under items tab.  for item i select consulting services, enter hours under qty, and vendors rate under cost, and then select billable and assign it to the customer:job

3. i then go to vendors > pay bills and pay the vendor

4. i then invoice the customer in the typical fashion customer > create invoice and then click on add time/costs.  my time that i entered and synched with quickbooks time shows up under the time tab.  my vendors time shows up under items tab.  my vendor expenses and my expenses for materials show up uynder the expenses tab which apply a 10% markup on.

5. i run this report reports > jobs, time & mileage > time by item    - this only shows my hours and not the vendors hours.  i believe this is because the vendor time is entered as consulting service and under the qty column as mentioned above and quickbooks does not recognize this as hours....

how should i enter my vendors hours?  so that i can show that i payed their bill with those hours listed on it, and be able to bill my customer on an invoice for those same hours.  and still be able to run reports on billable hours per month total that i includes my time entered in quickbooks time and vendor time from the vendor bills.  please help.

RenjolynC -

thank you for the response.  i am already doing all of those things that you mentioned.  i track my hours with quickbooks time and sync with quickbooks.  that all works well.

my main issue is with my vendors (consultants) hours. 

i want to be able to run a report to see how many billable hours i have each month.  this report should include my hours that are currently entered in quickbooks time app (formerly tsheets), and all of my vendor (consultant) hours that are included in their monthly bill.  currenlty when i run this report reports > jobs, time & mileage > time by item    - this only shows my hours and not the vendors hours.

i beleive the problem is how how i enter the vendors hours/bills

1. i receive bill from vendor each month

2. i enter the bill in quickbooks.  vendors > enter bills. 

- all materials i enter under expenses tab, account is supplies - project adn then select billable and assign it to the customer:job. 

- all billable hours i enter under items tab.  for item i select consulting services, enter hours under qty, and vendors rate under cost, and then select billable and assign it to the customer:job

3. i then go to vendors > pay bills and pay the vendor

4. i then invoice the customer in the typical fashion customer > create invoice and then click on add time/costs.  my time that i entered and synched with quickbooks time shows up under the time tab.  my vendors time shows up under items tab.  my vendor expenses and my expenses for materials show up uynder the expenses tab which apply a 10% markup on.

5. i run this report reports > jobs, time & mileage > time by item    - this only shows my hours and not the vendors hours.  i believe this is because the vendor time is entered as consulting service and under the qty column as mentioned above and quickbooks does not recognize this as hours....

how should i enter my vendors hours?  so that i can show that i payed their bill with those hours listed on it, and be able to bill my customer on an invoice for those same hours.  and still be able to run reports on billable hours per month total that i includes my time entered in quickbooks time and vendor time from the vendor bills.  please help.

Let me guide you on how you'll be able to get your billable hours information, jflagle.

You can run the Billed/Unbilled Hours by Person report and filter the names to show the information of the vendors. You'll have to make sure to use the hours' items so it would show on the information. I've added this screenshot for your guide.

Also, you can follow the steps below so you can customize the report. Here's how:

1. Run a report.
2. On the Report window, select Customize Report.
3. On the Modify Report window, go to the tab/s you need to update, then select OK when you're done.

Once done, double-check how the hours are integrated from QuickBooks Time to your QuickBooks Desktop reports, so you'll know how to enter the vendor hours. For more information, I've included this article for your guide: QuickBooks Time and QuickBooks Desktop Integration FAQs.

Additionally, in case you'll want to run a payroll report, take time to read this article for your reference: Create A Payroll Summary Report.

Fill me in if you have questions about the billable hours of your vendors. I'll be here to help.

MariaSoledadG

i dont think you understand my post above.  when i run the Billed/Unbilled Hours by Person report that you recommend, no hours show up for the vendors.  

Here is why.  i beleive the problem is how how i enter the vendors hours/bills.  see below for how i enter them.  in this fashion quickbooks does not recognize these as hours.  it simply sees a qty adn a cost.  not a billable hour and cost per hour.

1. i receive bill from vendor each month

2. i enter the bill in quickbooks.  vendors > enter bills. 

- all materials i enter under expenses tab, account is supplies - project adn then select billable and assign it to the customer:job. 

- all billable hours i enter under items tab.  for item i select consulting services, enter hours under qty, and vendors rate under cost, and then select billable and assign it to the customer:job

3. i then go to vendors > pay bills and pay the vendor

4. i then invoice the customer in the typical fashion customer > create invoice and then click on add time/costs.  my time that i entered and synched with quickbooks time shows up under the time tab.  my vendors time shows up under items tab.  my vendor expenses and my expenses for materials show up uynder the expenses tab which apply a 10% markup on.

5. i run this report reports > jobs, time & mileage > time by item    - this only shows my hours and not the vendors hours.  i believe this is because the vendor time is entered as consulting service and under the qty column as mentioned above and quickbooks does not recognize this as hours....

my question

how should i enter my vendors hours?  so that i can show that i payed their bill with those hours listed on it, and be able to bill my customer on an invoice for those same hours.  and still be able to run reports on billable hours per month total that i includes my time entered in quickbooks time and vendor time from the vendor bills.  please help.

Hello again, jflagle.

I appreciate all the details you've shared above. I'd like to add some steps to help you track the vendor hours and view it in the report.

To begin, let's start by turning on the time tracking feature.

Here's how:

1. Sign in as the Admin. And be sure to be in Single-user Mode.
2. Go to Edit > Preferences.
3. In the Preferences window, scroll down and select Time & Expenses.
4. Click the Company Preferences tab.
5. For the Do You Track Time? option, choose Yes.
6. In the First Day of Work Week drop-down list, choose the day on which you start tracking time each week. (Note: The day you choose affects all weekly timesheets. For example, if you choose Sunday, your timesheets begin with Sunday.)
7. Hit Ok.

Next, let's create the timesheet for the vendor by following these steps:

1. Go to Employees > Enter Time > Use Weekly Timesheet.
2. From the Name drop-down, select the vendor's name.
3. Add the customer or job from the Customer column.
4. Select the Service Item and enter the hours.
5. Make sure to check the Billable box.
6. Click Save & Close.

Once done, create a bill from the Vendors page.

Here's how:

1. From the Vendors page, select the vendor's name.
2. Click the Manage Transactions drop-down and select Bills.
3. Click anywhere on the Bills window and you'll be prompted with the Pay for the Time Worked window. Select Yes to choose the Time Period.
4. Hit OK.

After creating the bill, you can now create an invoice for the customer. 

1. Go to Customers > Customer Center.
2. Select the customer's name.
3. From the Manage Transactions drop-down, choose Invoices.
4. When prompted by the Billable Time/Cost window, choose Select the outstanding billable time and costs to add to this invoice? then select the Time.
5. Hit OK.

Finally, run the Time by Item report to see the duration. Here's a sample screenshot for a visual reference:

You can also read these articles for more information about the time tracking feature:

• Set up time tracking
• Create and print timesheets

Please feel free to get back here if you have any additional questions. Me and my colleagues are here to help. Have a good day ahead.

RenjolynC

wow!  amazing.  thank you so much.  it worked!!!  but still having a few issues.  when i entered the time into the weekly timesheet, i selected billable and the job to bill it to.  then created the vendor bill and added this time, and selected billable and job there as well.  the problem with this is that the same hours both show up as billable when creating an invoice for the customer (would be double billing).  when i select add time/cost button on the invoice, one of these shows up under time tab, and a duplicate shows up under the items tab.

so here is how i resolved that..

- when entering the time on weekly time sheet.  i did not select this to be billable

- when creating the vendor bill, i selected this to be billable and to the job

here are the detailed steps.  see attached file.  

my questions

1. is this the right way to do it?  only select billable when entering the vendor bill.   do not select billable when entering the time sheet?

2. will this work with 1099 consultants/vendors? is there anythign special i need to do for 1099 consultants

3. Can I trace from time entered > bill entered > payment > customer invoice?  for example, click on an employees time that was entered, and see what bill it was entered on, the payment to vendor, and then what customer invoice?

Hello, jflagle. 

Thank you for the update and for sharing the workaround that resolved the issue. I'm glad it worked on your end.  

To answer your questions. The first one is you're on the right track, just select the billable when entering the vendor bill so it won't duplicate. The second question, In 1099, all you need to do is make sure the mapping is correct. It's usually due to incorrect mapping that the vendor's 1099 will mess up, despite checking them off as eligible for 1099. 

Lastly, you can run Transaction list by vendor. This report shows the bill entered and payment made to vendor. Here's how: 

1. At the top menu, select Reports.
2. Select Vendors & Payables, then tap Transaction List by Vendor.
3. At the top left, click the Customize Report button. 
4. Customize the information you wanted to display in the report.
5. Click OK.

Also, you can check these helpful articles for reference in case you want to learn how to customize report in QuickBooks Desktop: 

• Customize reports in QuickBooks Desktop
• Set report preferences 

Please let me know if there's anything else you need, I want to make sure you're taken care of. Thanks for reaching out, wishing you and your business all the success. Stay safe!