I'm here to help, Leena.
Your chosen method will depend on how you want to keep track of your expenses and invoices.
If you want to link your expenses to the customer, you can consider duplicating the paid invoice and deleting the original. After that, you can make the necessary adjustments to connect the expenses correctly and add the hours. This way, you can maintain a clear record of the customer's payments and associated expenses.
Alternatively, if you prefer to categorize the bank transactions as business expenses without linking them to a customer, you can do so. Since the customer has already reimbursed the expenses, you may categorize them as business expenses and not link them to a specific customer. This is a more straightforward approach.
In case you need to send invoices over time as you work off an estimate, you can check out this article for more guidance: Set up and send progress invoices in QuickBooks Online.
Feel free to get back on this thread if you have follow-up questions regarding your invoices and transactions. Stay safe!
