How do I record an expense paid by my employee which I wish to bill to my customer?

Welcome to the Community, @dawnjohnson. 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.

    5. Enter Default bill payment terms.

    6. Select Save and Done. 

From there, you can now enter a bill to a customer for an expense.

Here’s 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 description and amount of the expense, then select the Billable checkbox.
6. In the Customer column, select the customer you want to bill for this expense.
7. (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.
8. Select Save and close.

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

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

I'll be glad to help you if you have any other questions about the information above.​ Have a good day!

When entering as an Expense, what payment account am I to choose?  What you recommend doesn't work because I'm required to choose a payment account yet my employee is the one who actually paid for the item. I don't want it to hit my cash/credit card register as it will never clear. 

If I enter as a Bill, it will never get paid, again because my employee has already paid for it.  I just want to be able to record it in such a way that it can be marked as billable to my customer.  Because I reimbursed my employee via a  payroll reimbursement account processed by Gusto, my payroll is actually imported in the form of a journal entry.  Unfortunately, journal entries can not be marked as billable to a customer for future invoicing.  A journal entry with the capability to assign expenses as billable to a customer would work perfectly.

I have posted this question multiple times and spoken to two reps but am not getting a clear answer regardless of how I ask the question.  I don't feel like it's that uncommon of an occurrence.  One more try!  Thanks!