I have a horse boarding business and we invoice customers monthly for boarding. I bought an item online for one of my customers for her convenience. It was not related to the business. She paid me back by adding the amount onto her check payment to me for her monthly boarding invoice. So She was invoiced for $500 but paid me $550. How do I edit the invoice to account for her reimbursement to me for the $50, without it being considered an income item.
I do not have a product or service item to account for a reimbursement. How do I handle this to keep the accounting correct??
Thanks,
Solved! Go to Solution.
I'm assuming this is a sole proprietorship Create a non-taxable service product and select your equity account under 'Income account'. The equity account is generally "Owner's Capital" for a sole proprietorship (although yours may be called something else). Then, add that product for $50 to your invoice. That will increase your equity in the business by $50. Then, when (or if) you withdraw the $50, assign your Owner's Draw equity account to the payment to yourself. That will keep the $50 off your P&L and your equity in the business will be the same as before - assuming you pay yourself the $50.
Hello, Stoney-B.
You can easily record and track billable expenses so your customer can reimburse them when they receive their invoice.
You'll need to turn it on from your account settings to use this feature. Then you can apply it to your invoices. Let me walk you through the steps below.
After that, we can now enter a billable expense.
Here's how:
Then finally, you can add it to the invoice. Here's how:
For additional details about this process, check out this article: Enter billable expenses.
Check out this article for more information about editing, reviewing, and deleting expenses in QBO: Enter and manage expenses in QuickBooks Online.
I'm always here if you need more help in recording your transactions. Let me know in the Reply section below. Have a great rest of the day!
I'm assuming this is a sole proprietorship Create a non-taxable service product and select your equity account under 'Income account'. The equity account is generally "Owner's Capital" for a sole proprietorship (although yours may be called something else). Then, add that product for $50 to your invoice. That will increase your equity in the business by $50. Then, when (or if) you withdraw the $50, assign your Owner's Draw equity account to the payment to yourself. That will keep the $50 off your P&L and your equity in the business will be the same as before - assuming you pay yourself the $50.
Awesome, that actually makes sense.
Thanks for both solutions so quickly.
B
Hello again, Rainflurry.
I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future. Please keep on posting here in the Community.
Keep safe and have a great rest of the day.
Is there anyway you can dumb this down? I am having the same issue, I really don't want to upgrade to do the billable expenses.
I found an income account of Owner's Equity, which I am assuming would be "Owner's Capital"? Then who to you assign the Owner's Draw Equity account to paying yourself? That's where I am mostly lost if I did everything else right.
However, when I also put it on the invoice it asks for the taxes. Now should I just put the full amount and then exempt from Tax, or put the non taxed amount and then put the taxes on..? So new to this.
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