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Client Reimbursable Expenses in QBO Essentials

I'm a new QBO Essentials user with a question on how to invoice for Client reimbursable expenses.  My business provides IT project consulting for clients.  These projects sometimes require travel on behalf of the client.  My client requires me to create an expense report in their expense system and then submit a copy of that expense report along with an invoice for payment.  Most expenses are incurred on company credit cards, currently being charged to Reimbursable Expenses account.

 

The billable expense features of QBO Plus don't seem to be a good match for my requirements.  My client doesn't want to receive an invoice that lists all of the detail items of the expense report already in their system.  

 

What is the proper way to invoice in this situation?  Can it be done properly in Essentials?

 

Thanks,

James

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Best answer 12-09-2018

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Established Community Backer ***

Re: Client Reimbursable Expenses in QBO Essentials

"currently being charged to Reimbursable Expenses account."

It's not, though. It's your Travel Expense. Look at your tax form. There is no line to report anything as vague as "Reimbursed Expenses." What you have is the initial Purchase entry as Travel Expense, and the payment to you is part of your sales income.

 

"The billable expense features of QBO Plus don't seem to be a good match for my requirements."

 

If you wanted to see and track it, you would set up a Service item or other charge, such as Travel, that you charge to them. What matters is that your own financial reporting shows Gross Travel as your expense and Payment from the customer as gross revenue.

 

"My client doesn't want to receive an invoice that lists all of the detail items of the expense report already in their system.'

 

Then don't use your own system for any details; but if you don't send that to them, then this is your own internal document for tracking AR and you get to put here what you want to track for your own purposes.

 

You either want to see it or not in your own system. You might not need an invoice at all in QB, if you log into their site to enter what they should pay you for. You would simply use Sales Receipt when they pay you, if you are not tracking the anticipation of their payment as an invoice for your own perspective.

 

You use the tools that matter. And you indicate you have Essentials. If you need more tracking, you should move to QBO Plus.

3 Comments
Established Community Backer ***

Re: Client Reimbursable Expenses in QBO Essentials

"currently being charged to Reimbursable Expenses account."

It's not, though. It's your Travel Expense. Look at your tax form. There is no line to report anything as vague as "Reimbursed Expenses." What you have is the initial Purchase entry as Travel Expense, and the payment to you is part of your sales income.

 

"The billable expense features of QBO Plus don't seem to be a good match for my requirements."

 

If you wanted to see and track it, you would set up a Service item or other charge, such as Travel, that you charge to them. What matters is that your own financial reporting shows Gross Travel as your expense and Payment from the customer as gross revenue.

 

"My client doesn't want to receive an invoice that lists all of the detail items of the expense report already in their system.'

 

Then don't use your own system for any details; but if you don't send that to them, then this is your own internal document for tracking AR and you get to put here what you want to track for your own purposes.

 

You either want to see it or not in your own system. You might not need an invoice at all in QB, if you log into their site to enter what they should pay you for. You would simply use Sales Receipt when they pay you, if you are not tracking the anticipation of their payment as an invoice for your own perspective.

 

You use the tools that matter. And you indicate you have Essentials. If you need more tracking, you should move to QBO Plus.

Community Contributor *

Re: Client Reimbursable Expenses in QBO Essentials

Thank you, this makes sense.  I will reallocate my expenses and create income service items for reimbursable client travel, training, etc.

Experienced Member

Re: Client Reimbursable Expenses in QBO Essentials


@Druth wrote:

I'm a new QBO Essentials user with a question on how to invoice for Client reimbursable expenses.  My business provides IT project consulting for clients.  These projects sometimes require travel on behalf of the client.  My client requires me to create an expense report in their expense system and then submit a copy of that expense report along with an invoice for payment.  Most expenses are incurred on company credit cards, currently being charged to Reimbursable Expenses account.

 

The billable expense features of QBO Plus don't seem to be a good match for my requirements.  My client doesn't want to receive an invoice that lists all of the detail items of the expense report already in their system.  

 

What is the proper way to invoice in this situation?  Can it be done properly in Essentials?

 

Thanks,

James


Hello, I'm back to QB (Online) after a several year long hiatus. I've read two or three "Q&A's" on this topic now, and I'm still not satisfied. Here's the situation: We provided services for a client in Minneapolis. (I'm in California). Our services were billed for $2000. The travel expenses were $1334.31. We sent the client an invoice for $3334.31, which they paid. My county bases their Business License rates on GROSS revenue. Therefore, I do not wish to simply record all these travel expenses as standard expenses and record $3334.31 in gross revenue. I get that for Federal Tax purposes that would work, but it artificially inflates my gross revenue. So I'm thinking there is a way to use the "Reimburseable Expenses" category as a way to match these expenses with the $1334.31 that our client paid without recording that as income. Or perhaps I simply call those expenses "Cost of Goods Sold"? I'm not an accounting expert by any means...but I keep reading answers to similar questions in this and other threads that all seem to me to increase gross revenue. Thoughts? Thanks very much!

@Druth wrote:

I'm a new QBO Essentials user with a question on how to invoice for Client reimbursable expenses.  My business provides IT project consulting for clients.  These projects sometimes require travel on behalf of the client.  My client requires me to create an expense report in their expense system and then submit a copy of that expense report along with an invoice for payment.  Most expenses are incurred on company credit cards, currently being charged to Reimbursable Expenses account.

 

The billable expense features of QBO Plus don't seem to be a good match for my requirements.  My client doesn't want to receive an invoice that lists all of the detail items of the expense report already in their system.  

 

What is the proper way to invoice in this situation?  Can it be done properly in Essentials?

 

Thanks,

James