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Level 2

how to enter reimbursements from customer

So I've been buying the materials for a remodeling job , none of this expenses where included in the cost for the project , the customer reimbursed me for this purchases , my question is How do I enter this in Quickbooks so it does not show as an income   

5 Comments
Level 1

Re: how to enter reimbursements from customer

i would recommend you assign a customer name in the transaction you recorded for paying for the material, and then you create an invoice for that customer and tab to next field, the expenses will pop up (if it doesn't click add time & expenses at the ribbon at the top of the invoice) you can select to invoice customer for these material cost and it will just reduce the expense

QuickBooks Team

Re: how to enter reimbursements from customer

Hello there, Racso.

 

You can record a barter transaction. Let me show you with the steps.

 

First, set up a barter bank account. Here's how:

  1. Click Lists, then go to Chart of Accounts.
  2. Click Account, then click New.
  3. Choose Bank, then click Continue.
  4. Enter a desired name (Example: Barter Bank account).
  5. Click Save & Close.

Next, create and receive payment for the invoice for the barter transaction. Here's how:

  1. Click Customers, then choose Create Invoices.
  2. Fill in the necessary information, then click Receive Payments.
  3. Click the drop-down arrow under MORE, then click Add New Payment Method.
  4. Enter Barter in the Payment Method field, then click OK.
  5. Click Save & Close.

Then, deposit the payment to the barter bank account. Here's how:

  1. Click Banking, then go to Make Deposits.
  2. The Payments to Deposit window will pop-up. Choose the barter payment, then click OK.
  3. Click the Deposit To drop-down arrow, then choose the barter bank account.
  4. Click Save & Close.

Lastly, open the pay the bill for the barter transaction. Here's how:

  1. Open the bill, then click Pay Bill.
  2. Click the Account drop-down arrow, then choose the barter bank account.
  3. Click Pay Selected Bills
  4. Click Save & Close.

As always, I recommend conferring with your accountant on the best way to handle this situation.

 

While I can't answer any accounting advice queries, I'm here for you if you have other QuickBooks technical concerns.

Highlighted
Level 15

Re: how to enter reimbursements from customer

@Kristine Mae

Please learn from the input here. There is no Bank account in the answer to this person.

 

@racso

 

Yes, this is Gross Income to you, but your purchase creates Gross Expense. Your reporting will show the Net is 0. Do not confuse Gross = All, with Net = what the Results are from the activities.

 

And you are using Desktop, so the entries on the Purchase data would be done using the Items tab, on the Checks and paperless check (debit card) and Credit Card Charge entries, and for Subs or vendors that send a Bill for you to pay later. You need to be using Two Sided Items, so that you linked the purchase to Expense or COGS and the Sales to Revenue.

 

And now you have Profit reporting, too.

 

Please see my attachment.

Level 15

Re: how to enter reimbursements from customer

I have attached what it looks like to enter Job Tracked Materials as a Billable entry for a customer project.

Level 15

Re: how to enter reimbursements from customer

Here is an attachment of a Remodeling Items list, with the account links.

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