Billable expense tracking (for multiple accounts): I want to assign an income account to expense account, but the option "Use for billable expenses" is not there. Ideas?

Let's make sure you'll be able to use the billable expense feature, dishllc.

In QuickBooks Online (QBO), you'll have to turn on the feature so you'll be able to see the option and be able to easily record and track billable expenses for your customer.

1. Go to the Gear ⚙ icon, then select Account and settings.
2. Go to the Expenses tab.
3. From the Bills and expenses section, select Edit ✎.
4. Turn on the following:
   • Show Items table on expense and purchase forms
   • Track expenses and items by customer.
   • Make expenses and items billable.
5. (Optional) Set up the following:
   • Markup rate
   • Billable expense tracking
   • Sales tax charge
6. Bill payment terms.
7. Click Save.

Once done, you'll now have the option to assign an income account to your expense account. To give you the correct workflow on how billable expense works in QBO, go through this article for your guide: Enter Billable Expenses. 

Moreover, if you're trying to edit your accounts in your chart of accounts, you can check out the details in this article: Create Subaccounts In Your Chart of Accounts In QuickBooks Online. However, if you want to edit the categories directly to your expense transaction, go through this tutorial for your guide: Edit Your Chart Of Accounts. 

Reach out to us if you have any questions about the billable expense feature. Remember the Community is always right here to help you 24/7.

I had already done the steps you described.  My question is about 5b — Billable Expense Tracking. That option states that when it's enabled, a field will appear on the account edit dialog so I can pick an income account to associate with the expense account. However, there is no new field in my account edit dialog.

Good morning, @dishllc. 

I appreciate you hopping back in. I can provide you with some additional information to help you figure out this issue. 

The "Track billable expenses and items as income" feature/field allows you to use one or more income accounts to track billable expenses. Here's some examples: 

On the Check page, you enter a payment for $200 worth of lumber, using an expense account called Lumber, and make it billable to one of your customers. Then you include that billable expense on the invoice to that customer.

What happens?

In the check transaction, QuickBooks decreases your checking account by $200 and increases the Lumber account by $200.

In the invoice transaction, QuickBooks increases your accounts receivable account by $200. It's also affected by the income account setting you choose:

• If you choose In a single account, the account specified in the setting Gear> Chart of accounts > Billable expense income account is increased by $200.
• If you choose In multiple accounts, the account specified in the Account information page for Lumber is increased by $200. For example, you might specify an income account called Reimburse: Lumber.

Note: Be sure to check out this related setting: Advanced > Chart of accounts > Billable expenses income account.

I'm hoping this helps you out. If not, come back so we can dig further into this issue. Have a  wonderful day! 

Thanks for your reply... I do already know how to use "Track billable expenses and items as income"... I've been using that for a while, but with a single account.

I posted this question because, when I changed my setting from "Single Account" to "Multiple Accounts", I can't find the way to set accounts as billable expense accounts.

In your explanation, you noted that "the account specified in the Account information page for Lumber is increased by $200" ... this is the problem... when I edit an account, there is no setting on the expense account information page to choose a corresponding income account.

Here's what the billable settings page says (see the tooltip)...

And here's what my edit account dialog looks like...

Am I looking in the wrong place for the "Use for billable expenses" option?

Thank you @Kurt_M!  I didn't realize I was in accountant view. I must have switched the view accidentally at some point when I was moving too fast 😅

You're welcome, @dishllc.

I'm glad my colleague was able to help with your concern.

Don't hesitate to post again or leave a comment in this thread if you have any other questions in the future. I'm more than happy to answer them. Have an amazing rest of the day!

The responses from the QB reps is totally inadequate.

In Business view, you still do not get a window with a checkbox for a sub account. I wish you would learn how your software operates.

I've spent 4 hours on the phone with tech support, and they couldn't solve this issue. The work-around I discovered is to:

1. Open COA and immediately click "Run Report"

2. On the report table, click the account you wish to edit, and the old (previous) dialog opens which provides the sub-account checkbox.

Note: you will have had to first add a new account without its sub-account in the COA before editing it from the report table.

Very frustrating. Why don't you revert to the old interace??????

Thank you, Modern Dwellings!! I was struggling with the same thing. That worked!

Thank you!  We had the same issue and the QBO chat help was not at all helpful and disconnected with us while we were following his suggestion of clearing the cache and cookies and logging back in!  This view should show when you click to edit the account!

I appreciate you chiming in on this thread, Pam. Let me ensure this has been resolved for you. 

In QuickBooks Online, we're able to switch views depending on our company's preferences. There are also options available on the Accountant view but not in the Business view. That said, the ability to show the Use for billable expense checkbox is to switch to the Business view. This way, it would help you set up your income or expenses account and other accounting data or transactions. 

You can follow the steps provided by my colleague, KurtKyle_M, above to guide you with the steps. Here's how:

1. Access your QuickBooks Online company.
2. Go to the Gear icon.
3. Click the Switch to Business view hyperlink below the Profile column.

Moreover, you can check out this article to help you customize your chart of accounts and track other types of transactions: Add an account to your chart of accounts in QuickBooks Online.

Keep us updated on any further questions. We'll gladly assist you at any time. Have a good one!

Actually, our issue has nothing to do with which view you are in because the "Use for billable expenses" box and "Income Account" drop down menu does not show in either view when you click on edit in the chart of accounts.  The solution provided by Modern Dwellings on 10/19/2022 works with either view.  You must open the chart of accounts and click on "Run Report" in the top right hand corner of the screen to show your chart of accounts report, then click on the expense account for it to show the needed fields for "Use for billable expenses" and "Income Account" drop down box.