Enter billable expense that was free to my company (no bill to pay) and invoice client

mayandgemini · ‎June 09, 2022

I have QBDT Enterprise Suite. A plumber did $250 worth of work on a client's job and I need to invoice that client for this amount. Normally, I would just enter the billable expense and pay the plumber and invoice the client, but this time, the plumber does not want to be paid in cash or credit or barter, he wants nothing. I need to account for the $250 in the client's job costs as well as invoice the client for that amount. It doesn't seem like a pass-through expense because nothing is due and we are not bartering.

Do I just enter the bill, invoice the client, and have an open, unpaid bill in my books forever? We would rather NOT have an open, unpaid bill if possible.

Is there a way to enter this $250 bill towards the client's job and show that the bill does not have a payment due and owing? Then I would just invoice the client as normal, right?

Thank you!!

Jen_D · ‎June 09, 2022

It's great to have you here in the QuickBooks Community, @mayandgemini

I can share some insights to help you resolve the contractor's balance that the plumber doesn't want to receive.

For this, there are 2 options you can do. First, you can delete the bill and process a vendor credit to apply the amount to his future bills. Secondly, you can write off the balance so there isn't any pending payable in your account.

To write off the balance, use a journal entry.

Create a journal entry.
In the Account field and choose Accounts Payable from the dropdown list.
Enter the amount under the Debit column, tab to the Name column and select the vendor name from the dropdown list.
In the next line, select the offset account and enter the amount under the Credit column.
Select Save & Close.

Apply the journal entry to the existing bill.

From the Vendors menu, select Pay Bills.
Locate the bill and choose Set Credits.
For the Credits tab, select the available credit and select Done.
Press Save & Close.

Post here anytime if you need further help with the adjustments. I'll be right here to make sure your balances are correct and assist you with managing your vendor and customer payments. Have a good day!

Rainflurry · ‎June 10, 2022

@mayandgemini

You can't enter a bill because you didn't incur an expense. If you enter a bill, you would be falsely increasing your expenses by $250. Just add $250 to the client's job cost with no offsetting expense. It's $250 of pure profit to you.

mayandgemini · ‎June 15, 2022

@Rainflurry

What's the cleanest way to add $250 to the client's job cost with no offsetting expense?

The only thing I can think of is to just add a line item in their Invoice for the $250...

Thanks!

Rainflurry · ‎June 15, 2022

@mayandgemini

Agreed. Just add an item to the invoice that you have set up with $0 cost.

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Enter billable expense that was free to my company (no bill to pay) and invoice client