We have a dirt excavation business where some cost to be billed to the customer are not expenses in the bank register that can be posted to the project. For example: we include a service charge to cover overhead cost per job or a fee for the use of our equipment. This equipment fee is not for labor and our equipment has been fully depreciated in a previous year.
When I try to add these costs to a project, I must select a category of "invoice, receive payment, expense, estimate, time or bill". If I select "expense" and add the service fee to the project, there is an expense that is automatically added to the bank register. This results in an unreconciled expense when reconciling with my bank statement. I contacted QB and was told to do a J/E to Debit Opening Balance Equity and Credit Bank Account. This is not only going to create lots of J/E's but create questions from our CPA Firm.
How can I add a service fee or overhead expense to a project that will be billed to the customer without impacting my check register and without constantly recreating J/E/s? Another note - We pay out commission to our employees per projects. The commission is a percentage of the revenue. I need the service fees and overhead expenses included on my projects to figure commission payouts correctly. Please help. Thank you!