In order to switch from "As Expense" to "As Revenue" I did the following:
Welcome to the Community, Ron12.
I appreciate you elaborating the situation. The detailed information you've provided can help me look for a resolution.
Based on your scenario, create a journal entry so you can move the reimbursement credit amount into the revenue account from the expense account.
Here are the steps:
See the Create a journal entry in QuickBooks Desktop article for further guidance.
Then, you can use an item when creating purchases billable to customers. So when they're converted into an invoice, the income will be allocated correctly moving forward.
I'm also linking an article about tips in creating journal entries.
Please let me know if you have any follow-ups or other questions. I'm always ready to lend a hand and help you further. Wishing you a good one.
Thank you for your answer :-)
Yes, I also thought about fixing the issue with a journal entry, but I felt like that solution is circumventing QB.
From your answer I understand that going forward QB will book reimbursable expenses as revenue, but the only way to do it through QB after the payment was processed it through a journal entry.
I used a journal entry to move the negative expense from the old "Reimbursable Expense" account into a new "Reimbursable Income" account.
In the chart of accounts, I also turned the old "Reimbursable Expense" account to inactive.
However, the old "Reimbursable Expense" account still appears in the P&L (with zero balance).
Is there a way to remove that account completely, or at least prevent it from appearing in the P&L?
It's good to see you again, Ron12.
When you inactivate an account in QuickBooks, it gets removed from the Chart of Accounts and the system will create an adjustment entry to zero out the register's balance.
However, the inactive account will remain part of your company data to make sure all reports will remain unchanged.
You can find more information in this article: Understand QuickBooks Chart of Accounts.
Keep me posted if you have any questions. I'll be here to keep helping. Take care and have a great day.
Thanks for getting back to us, @Ron12.
Yes, that's correct. QuickBooks won't allow you to delete an inactive account if it still has transactions. However, since it has a zero balance, there's a way to prevent that from appearing in the Profit & Loss report, and I'm happy to show you how:
For additional information, consider checking out these articles:
Please let me know if you have any other issues or questions by leaving a comment. I'm more than willing to help. Have a wonderful day!