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Level 1

Vehicle mileage is being billed at my hourly rate instead of IRS rate

I am the owner/principal/sole member of a small consulting business. I have not had to use Quickbooks in the past but now I have to use. I entered myself in Quickbooks as "Other names" since I am not a vendor or employee. I entered my hourly billing rate when I created my "Other names" entry. I traveled to the client location and I entered the miles for my car with the current IRS mileage rate. When I tried to generate an invoice for the client, Quickbooks multiplied the miles driven by my hourly rate (Billing rate level) rather than by the IRS rate. How do I fix or delete this?

 

Thanks.

 

Ted

Solved
Best answer 06-18-2019

Best Answers
QuickBooks Team

Re: Vehicle mileage is being billed at my hourly rate instead of IRS rate

Hello Ted,

 

It looks like you're using the Desktop version of QuickBooks. When you create an invoice to a client, the rate of the mileage is calculated based on what item is selected from the mileage.

 

Instead of using the regular item, you can create a new item with the IRS rate and select it from the mileage section.

 

Here's how to create an item:

  1. Go to List located at the top.
  2. Select Item List.
  3. Click the Item drop-down menu and select New.
  4. Choose Service from the Type drop-down menu and enter the rate information.
  5. Click OK.

Once done, let's go to the mileage page and edit the item.

 

Here's how:

  1. Click Company located at the top.
  2. Select Enter Vehicle Mileage.
  3. Click Previous and search for the mileage.
  4. Update the item from the Item drop-down list.
  5. Click Save and Close.

Then, go back to the customer section and create an invoice, and then click the Add/Time Cost to see if the rate is correct.

 

We're always here to help if you need anything else. Thanks.

View solution in original post

5 Comments
Moderator

Re: Vehicle mileage is being billed at my hourly rate instead of IRS rate

Hello, TedR,

 

I'm here to help share information about how to track mileage.

 

In QuickBooks Online (QBO), to track mileage, you'll need to manually set up an employee as a vendor, create an expense account, Product/Service item and enter bills.

 

To know more about this process, you can check out this article: How to track mileage.

 

In your case, for me to be able to provide you with the best resolution, can you please verify what specific "Other names" you've set up? Is this a customer?

 

I'll be looking forward to your reply. Have a great day!

Level 1

Re: Vehicle mileage is being billed at my hourly rate instead of IRS rate

I set myself up as the "Other name." That is, Ted R (I used my actual last name in the account) is the "Other name." I am not a customer. I am the owner (Principal) of my company.

 

Thanks.

 

Ted

Level 1

Re: Vehicle mileage is being billed at my hourly rate instead of IRS rate

I set myself up as the "Other name." That is, Ted R (I used my full last name in the account) is the "Other name." I am not a customer. I am the owner/Principal of my company.

 

Thanks.

 

Ted

QuickBooks Team

Re: Vehicle mileage is being billed at my hourly rate instead of IRS rate

Hello Ted,

 

It looks like you're using the Desktop version of QuickBooks. When you create an invoice to a client, the rate of the mileage is calculated based on what item is selected from the mileage.

 

Instead of using the regular item, you can create a new item with the IRS rate and select it from the mileage section.

 

Here's how to create an item:

  1. Go to List located at the top.
  2. Select Item List.
  3. Click the Item drop-down menu and select New.
  4. Choose Service from the Type drop-down menu and enter the rate information.
  5. Click OK.

Once done, let's go to the mileage page and edit the item.

 

Here's how:

  1. Click Company located at the top.
  2. Select Enter Vehicle Mileage.
  3. Click Previous and search for the mileage.
  4. Update the item from the Item drop-down list.
  5. Click Save and Close.

Then, go back to the customer section and create an invoice, and then click the Add/Time Cost to see if the rate is correct.

 

We're always here to help if you need anything else. Thanks.

View solution in original post

Level 15

Re: Vehicle mileage is being billed at my hourly rate instead of IRS rate

edit the hourly rate you entered

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