Reimbursable Expense

Dlpettit · ‎November 30, 2022

I have multiple charges to the state for license and fees for our clients, we turn around and charge the client for the expense. However, we do not run our customer invoices through QB to record as a reimbursable expense to offset our expense.

Would I create a "income" account that would show a credit under income for the expense? We charge the client $100.00 for the service and fees and the fees paid are $50.00.

Service Income $100.00

Reimb Expense ($ 50.00)

Gross Profit $ 50.00

Any other ideas would be helpful.

BigRedConsulting · ‎November 30, 2022

The Reimbursable expense feature only works if you do invoice the expenses to your customers.

If you don't invoice your customers, then there really isn't any income to record in QuickBooks.

What sort of transaction will you be recording in QuickBooks to offset the expense?

Dlpettit · ‎November 30, 2022

We pay their Secretary state fees, we invoice them for the fee plus the service. We invoice from a different program. The whole amount of the service $100 is invoiced. The expense comes across our credit card statement. I'm thinking of just putting it in an expense for permits/fees.

BigRedConsulting · ‎November 30, 2022

RE: We invoice from a different program.

Then that's where you'll invoice this contra-expense / income, right? So, why (and how) do you want to record it in QuickBooks as well? Seems that would be double-counting the income.

Dlpettit · ‎November 30, 2022

I got it figured out. The expense we pay for deducts from the gross receipt.

Thank you for your input.

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Reimbursable Expense