Billable reimbursements

I have a client using Desktop 2021.  They are using billable expenses to populate their invoices.  I WANT the reimbursable expenses to populate the revenue, but currently ONLY THE MARKUP goes to revenue and the expenses are all credits to COGS.  I cannot find any set up options to correct this.  Any help would be appreciated. 

Thought I found something with the suggestion of clicking the box in preferences under Time & Expenses clicking the box that says "track reimbursed expenses as income" but I went in and did a test invoice and there is no change...still has billable expenses crediting COGS.  

Thanks for joining the thread, @KelleW.

Cost of Goods Sold (COGS) is only affected when you sell inventory items on invoices or sales receipts. Since you're trying to bill the item to your customer, QuickBooks will automatically affect it to your COGS account. 

You can't change this set up since this is how the system is programmed when handling sales transactions and tracking your inventory.

For additional info, you can check out this article: Understand inventory assets and cost of goods sold tracking.

In case you need further help in handling your transactions, I'd suggest getting in touch with your accountant. They can provide you assistance in handling your books to ensure they are correct. 

You can visit our Help articles page it provides topics that might answer your How do I questions.

Please let me know how it goes or if you have further questions about QuickBooks. I'll be here to help. Take care always.

@raymondo Thanks for your reply.

My client is not using inventory.

They enter a bill from a vendor (either consulting labor or materials) that is for a project.  Then my client invoices their client by gathering the project's billable costs and adding a markup.  The full invoice should be going to revenue, but it is not.  There is something happening when the billable expenses are populating the invoice and using Riem Group as an item.

Thanks for getting back, KelleW.

Let me help you check the items on your invoice and guide you to make sure they show on your Profit and Loss report. 

Here's how:
 

1. Open your QuickBooks Desktop (QBDT) account.
2. Go to the Lists menu then choose Item List.
3. Select an item on your invoice.
4. From the Account dropdown, choose an income.
5. Click Ok.

Also, when you received the payment for your invoices, you'll need to deposit it using the Make Deposit feature. Refer to this article that details the process: Record and make bank deposits in QuickBooks Desktop. Once done, review your Profit and Loss report if the income is already showing.

However, if it's still not showing, I'd recommend contacting our QuickBooks support team.Our live agents have all the necessary tools to pull up your account and do screen sharing. 

I'm adding this article to learn how to personalize your reports: Customize reports in QuickBooks Desktop.

You're always welcome to post your QuickBooks-related concerns or questions here. We'd be glad to help. Take care.

@KelleW I am having this same exact problem.  When Invoicing billable expenses, only the markup is showing in Income  on the P&L.  It should be the whole expense plus markup going to income and the expense amount listed in expenses.  
Were you able to find a solution?  

Hello, Jmz2. 

Thanks for joining the Community. Let's work together and ensure we can resolve the issue. We can double-check the setting and make sure you mark-check the Markup income account and Billable expense income account to reflect the correct posting account when running a report. Here's how: 

1. Click the Gear icon on the top menu.
2. Tap Account and Settings.
3. Choose Advance.
4. Tick the Pencil icon on the Chart of Accounts section.
5. Go to the Markup income account field and choose an account. If you'll want to change the account for the billable expense, just go to the Billable expense income account field.
6. Press Save.
7. Hit Done. 

On the other hand, you might want to review all your sales transactions made in QuickBooks Online. You can go to the Sales menu and select All Sales. This is to ensure they correspond on the correct account.

For other related articles, you can use in the future, refer to this helpful link: Income and Expenses for QuickBooks Online. 

You can always post in the forum if there's anything that I can help you with. Have a great day!

@AileneA We are using Quickbooks Desktop, not Online.  I have checked in preferences the box that says track billable expenses as income, but it did not put the billable expense income in the income section of the P&L.

Hello there, Jm. I'm here to clear up why your billable expenses are not showing up in your report.

The customer's billable expenses are incurred. They do not initially show on your Profit and Loss statement because they are not business expenses. Instead, they will be temporarily recorded as assets on your Balance Sheet and billed to the customer. Let's run the Balance Sheet and check.

Here's how:

1. From the Reports menu, select Company & Financial and then Balance Sheet Summary.
2. Select Customize Report.
3. On the Display tab, select the accounting method under Report Basis.
4. Select OK.

For your reference about filtering and removing columns from your report, feel free to read this article: Customize reports in QuickBooks Desktop. This covers guides for running reports like combining them from two or more company files.

In addition, you might want to filter, sort, or total reports by class in the future.

Please feel free to leave a comment below if you have other reporting concerns or questions about managing transactions in QBDT. I'm always ready to help. Take care, and I wish you continued success.

My Client's CPA says that when the customer pays the entire invoice, billable expenses plus the markup should be included in gross income and the expense would be listed under expenses.  This is not happening. What is happening is the expense when paid for is showing as an expense in the P&L, but when the customer is invoiced for it and then the customer pays the invoice, a negative expense is generated to the expense account bringing the expense amount to zero. 

 I have another client who does billable expenses like this using QB Online and theirs does show up under Gross income as Billable expense income.  The client who uses desktop they don't.  Both are Cash Basis.

Thanks for sharing more details of your concern, @Jmz2.

I recognize the importance of showing the billable expenses and their markup shown in the Gross Income section in your Profit and Loss (P&L) report when your customer pays the entirety of their invoices. However, it isn't possible in QuickBooks Desktop (QBDT). As my colleague, @Abegail_ S has mentioned above, billable expenses are expenses incurred on behalf of a customer and don't initially appear on the P&L Statement. 

I can see how convenient it is to have the data you want to show in your P&L report. I recommend letting our Developers be notified of your idea by leaving feedback. They might consider your idea for future product enhancements.

To send your input, here's how:
 

1. Go to the Help menu and select Send Feedback Online.
2. Click Product Suggestion.
3. Choose a feedback type and product area on the QuickBooks Feedback window.
4. Enter your suggestion or feedback, name, and email address (optional).
5. Select Send Feedback Online.

Moreover, I'll also share this link where you can browse for articles that can guide you in managing your QBDT file: QuickBooks Desktop Help Articles.

Feel free to leave a reply if you have additional QuickBooks-related queries. The Community team always has your back. Have a good one.