Billable expenses with discount that are not passed through

Great having you join us here in the Community, @Tabok. I’m here to walk you through the steps on how to record a billable expense in QuickBooks Online. 

First, turn on the billable expense tracking. Here’s how: 

1. Go to Settings ⚙, 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.

1. Enter Default bill payment terms.
2. Select Save.

From there, you can now enter a bill to a customer for an expense. Let me guide on how: 

1. Select + New.
2. Select the transaction (Bill, Expense, or Check) you want to create.
3. Select the payee.
4. In the Category column, select the expense account for transaction.
5. Enter the billable account amount of $40 the expense, then select the Billable checkbox.
6. Then, enter the same account amount of -$5 (not Billable). 
7. In the Customer column, select the customer you want to bill for this expense.
8. (Optional) Enter or make sure the markup % is correct, then select the Tax checkbox or choose a tax agency if you want to charge tax.
9. Select Save and close.
   
   

You can check this article for more for more information and detailed steps: Enter billable expenses.

In addition, I've got this helpful resource to guide you further if in case you want to delete a billable expense charge in the system: How to remove a billable expense charge. 

I'll be around if you need further assistance about managing your vendors in QBO. I'm very eager to help. Take care!