I cannot work out why items/services that are billed as reimbursable expenses to the client are not being included in my income and cost of goods sold figures. I need them to be ...
They'll use the account set up on the item I think.
To see the accounts used, open an invoice that has reimbursed expenses pasted to it and then create a Transaction Journal report from the bottom of the Reports menu.
Do you see the expected accounts for those line items?
Did you set them up as Two Sided? You need to checkmark the box on the left, so that you assign an Expense account on the left and an Income account on the right.
Then, you list the items on purchases, and that results in the data flow to the expense account(s). Optionally, you Job Track it, as directly for that name, as Customer:Job. That makes it show in Job Reporting.
Optionally, and additionally, you can mark that this is billable to the customer:job; or it is not, because you are working under some fixed fee or bid or contract amount. If that is billable, you add it for invoices and sales receipts by using the Add Time & Costs function. And now that results in the Income side of the data flow.
Did you do all of this?
I enter the bill for an item/service and tick it as billable to a job. Then at invoicing time I use the Add Time & Costs function to add all of the reimbursables to the client's invoice but the reimbursement for those items is not being translated to an income account as it should. I'm missing something somewhere ...
I love being able to see the transaction journal. Thank you for that tip!
So, I see that when I invoice the reimbursables the account that was debited when I entered the supplier's bill eg Subcontractor's Expense (actually a COGS account), is then credited resulting in it becoming null in the reporting. I think I need it to stay debited in the Subcontractors COGS and get credited to Income but don't know how.
Are your items Two Sided? Look at edit item, on the left, towards the bottom = Checkmark that Box. This turns it into Two Sided. The Left side = expense and the Right side = income. When you try to save this change, QB offers to Move existing data for you. Let it do this for you. Please see my attachment.
Reimbursement is just Income; your tax form has one line for income.
Oh, for this, this is correct, but from two separate activites: "I think I need it to stay debited in the Subcontractors COGS and get credited to Income but don't know how."
Debit Banking or Funds; credits to Income. COGS is incurred when you Pay for it, not when you sell it. From the sales receipt or invoice, Ctl Y = shows debits and credits as Journal view. All positive values from Sales = Credits. The Funds activity is the Debit. From the Purchase, the Purchase details positive = the Debit; the Check or Credit Card Charge or Bill is the Credit.