I have an online postage account (Stamps.com), which carries a prepaid balance for postage I've paid to "fill" the account. Periodically, I must refill that account.
As I incur postage costs, I need to bill my clients for the postage.
I've created an account named Postage Balance, as an Other Current Asset, detail type Prepaid Expenses. As I spend for postage online, how do I record that as a billable expense to a particular client project (and make sure that when I create an invoice for the project, that expense is billed on the invoice)?
I have an Expense account called Client Expenses (type: Other Business Expense). I did a Journal Entry that credited the Postage Balanced account by $X and debited the Client Expenses account by $X. In the Name column of the entry, on the debit line, I chose the appropriate project.
If I view the project, the expense shows up as an expense. HOWEVER, if I choose to create an invoice, only the unbilled time appears. The expense does not.
An alternate approach that I tried: I tried to create a new "Expense" (click New, choose Expense). For payment account, I choose Postage Balance account (which shows as an Other Current Asset account). Category Detail: Client Expense account. Amount:$X. Billable:Check. Customer/Project entered. ERROR:
"Something's not quite right. You need to select a different type of account for this transaction."
Thank you for taking the time to post today. I'm happy to share information about your billable expense.
Making your expenses billable to your client is the right way to record them in QuickBooks. You only got an error because the payment account you used is an asset type. It should be a checking, credit card, or cash account. You don't need to create journal entries.
Here's an article for your additional reference: Enter billable expenses.
Please give it a try and let me know if you need more help. Take care and have a good one!
"You only got an error because the payment account you used is an asset type. It should be a checking, credit card, or cash account."
However, as I said, I'm not paying the expense when it's incurred. I've prepaid Stamps.com, and when I incur postage charges, they deduct it from what I've prepaid. So, when I go to expense it to a client, I'm not paying anything from a checking, credit card, or cash account.
The only workaround that I see, then, would be to create a faux checking account or cash account that contains the prepaid postage amount, and "pay" the client expense out of that...
@JessT , further to my issue, after I created the faux checking account--Stamps.com (Prepaid)--and set the opening balance at the amount my online Stamps.com account had in it, I was able to easily create a billable expense that got charged to the designated client/project and got deducted from my QBO account Stamps.com (Prepaid).
HOWEVER, I can't figure out how to add money to the QBO Stamps.com (Prepaid) account.
The process goes like this: Online with Stamps.com, I add funds. My credit card gets charged the appropriate amount, and that CC transaction gets downloaded to QBO. But, I can't figure out how to record the fact that there should now be additional funds in the Stamps.com (Prepaid) account.
I'm looking for a way to keep my QBO credit card account accurate, but somehow reflect an addition of funds to my Stamps.com (Prepaid) account.
Thank you for the additional details. However, it would be best if we have visibility on your setup.
Please contact our QBO Support team. That way, they can use a screen-sharing tool to check your transactions.
The team is available on weekdays from 6 AM to 6 PM PT.
Let me know if you have other questions in mind.