Client reimbursed expenses

Easy way to think about business, is what you pay is an expense (or an asset purchase) and what you are paid is income

book your expenses, book the amount received, then on the P&L income is reduced by expense

so if they are the same they cancel each other

Does anyone have a clear answer on this? 

I work for a lawfirm and we are converting the entire firm to Quickbooks.

We prepay massive amounts of medical bills for client and they are paid at end of the case.

Need clear answer please

Hi there, @lynnhomer.
 

Thank you for joining this thread. I've got the detailed steps you'll need to track these reimbursable expenses in QuickBooks Desktop.
 

You'll have to record these medical expenses you incur on your client's behalf as billable. This allows you to link them to an invoice so your customer can reimburse them when they receive it.

Here's how:

1. Go to the Banking menu and then Write Checks.
2. Fill in all the necessary information.
3. Under the Expenses or Items tab, choose the expense account or item.
4. Under Customer:Job, select the client you want to bill for this expense.
5. Mark the Billable box with a checkmark.
   
   
6. Click Save & Close.

To reimburse the cost, add it to an invoice using these steps:

1. Go to the Customers menu and then Create Invoices.
2. Select the client you billed the expense for. This opens the Billable Time/Costs window.
   
3. Choose the first option and then click OK.
4. Go to the Expenses or Items tab and mark the transaction you want to charge to your customer and then OK.
5. Review the invoice and then click Save & Close.

Once you receive the payment, you can record it right away.

Please let us know how these steps work out. The Community is always here should you need additional assistance. Have a pleasant day!