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Level 1

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

 
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Best answer October 19, 2018

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Level 3

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Hi there pearly

Happy Monday!

Billable expenses are reimbursable from your customer by way of billing. They are the expenses that are incurred by you on behalf of your customer in performing some work, services or supplies. You can mark bills, checks, expenses, etc. as billable, and can later be applied to invoices. They will show up as an expense on your books and as income when invoiced, which varies significantly from product income.

You can turn off the billable expense setting, but existing billable expenses will remain until applied to an invoice or unchecked as a billable expense.

Here's how to turn off the billable expense:

  1. Click on the Gear icon.
  2. Click on Account and Settings.
  3. Select Expenses.
  4. Click on the pencil icon under Bills and expenses.
  5. Uncheck the box to Track billable expenses and items as income.
  6. Click on Save.

Feel free to reach out if you have any further questions.

View solution in original post

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Highlighted
Level 3

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Hi there pearly

Happy Monday!

Billable expenses are reimbursable from your customer by way of billing. They are the expenses that are incurred by you on behalf of your customer in performing some work, services or supplies. You can mark bills, checks, expenses, etc. as billable, and can later be applied to invoices. They will show up as an expense on your books and as income when invoiced, which varies significantly from product income.

You can turn off the billable expense setting, but existing billable expenses will remain until applied to an invoice or unchecked as a billable expense.

Here's how to turn off the billable expense:

  1. Click on the Gear icon.
  2. Click on Account and Settings.
  3. Select Expenses.
  4. Click on the pencil icon under Bills and expenses.
  5. Uncheck the box to Track billable expenses and items as income.
  6. Click on Save.

Feel free to reach out if you have any further questions.

View solution in original post

Highlighted
Level 1

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

When invoiced, why does it not show in the Accounts Receivable even though it does show in the AR aging
Highlighted
Level 1

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

After creating Customer Invoice for billable expenses, the journal that is created reduces (credits) the billable expense instead of crediting an income account.  How to select an income account for the invoiced amount?

Using Quick Books Enterprise Edition 2018

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Anonymous
Not applicable

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Thanks for your time visiting us today, GM_PS,

 

I can help you add an income account for your billable expenses.

 

Let's make sure your billable expenses settings is correctly configured in the Company Preferences. Let me guide you how to do that:

  1. Go to the Edit menu at the top.
  2. Select Preferences.
  3. Choose the Time & Expenses menu.
  4. Click the Company Preferences tab section to expand the options.
  5. Make sure the Track reimbursed expenses as income box is marked.
  6. Click OK.

Once done, you can open the expense account from the Chart of Accounts then assign the correct Income account. Here's how it is done:

  1. Click the List menu at the top.
  2. Select Chart of Accounts.
  3. Locate your expense item from the search field and click Search.
  4. Right-click on the expense account your using for your billable expenses.
  5. Select Edit Account.
  6. Make sure to mark the Track reimbursed expenses in Income Acct box.
  7. Select an income account by clicking the drop-down.
  8. Click on Save and Close.

That should help you report your billable expense to the correct account.

 

Please let me know if there's anything you need help with, GM_PS. I'll be glad to work with you again. Have a good day!

Highlighted
Level 1

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

When I input a bill the customer "Customer:Job" column has my customer name, but the "Billable?" column will not accept a check mark.  Is there a way to turn this feature on?  I am using Quickbooks 2019 for Mac desktop version.

 

Thank you.

Highlighted
QuickBooks Team

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Thank you for joining the thread, @sinkfork.

 

Allow me to help share information about billable expense in QuickBooks Desktop for Mac.

 

Since the Billable column is for making an expense to be assigned/billable to a specific Customer: Job, the only time that the column will be available for making is if there's an expense account on the expense tab.

 

Make sure to select an expense account when creating transactions.

 

Stay in touch if you have any other questions about billable expense, I'm always here to help. Have a wonderful day!

Highlighted
Level 1

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Thank you.  I was trying to use a COGS account, which is more inventory related.  Using an expense account is the answer.  Thank you very much.

Highlighted
QuickBooks Team

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

You're always welcome, @sinkfork.

 

Please know that our doors are always open here in the Community. Don't hesitate to add a post if you have any other QuickBooks concerns in the future. Wishing you the best!

Highlighted
Level 2

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Having similar issue. I have corrected the settings so that payments for billable expenses will be recorded as income. However I read somewhere that this will only apply to future transactions. I have several past transactions where there is expense recorded but no offsetting income when the payment was received (P&L report). Also, on the past transaction invoice where I included the billable expense, there is nothing in the Product or Service field. My report on the Billable Expense Income account has no data. Do I need to change the invoice to add a Product or Service? Or do I need to make journal entries crediting the Billable Expense Income account--and then what account do I debit? Or is there something else I should do?

Highlighted
Anonymous
Not applicable

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Hello there, Queen Bee 53,

 

I want to make sure you're able to track your billable expenses.

 

You're on the right track with updating the settings to record your billable expenses as income. To correct previous transactions, you can edit them by adding the Customer: Job name to track the expenses. Follow the instructions provided by my colleague @Angelyn_T on her answer above.

 

Once you're done, you can enter journal entry adjustments. To know which accounts to use, we always recommend consulting an accounting professional. They can provide you the best legal and accounting advice that works for your books.

 

You might find this article helpful: How to create a journal entry?

 

Please notify me if you need further assistance. I'm always here to help. All the best!

Highlighted
Level 2

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Thank you. I've learned a lot here. 

Highlighted
Moderator

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Hello Queen Bee 53,

 

We're glad that the answers above help you to get your business running. 

 

If you have any questions, let us know. Have a good one! 

Highlighted
Level 2

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Upon closer inspection of the P&L statement I realized that the earlier transactions (before changing the settings) did not include the customer payment as income and did not include the billable expense as an expense, EXCEPT for the expenses which I had not yet included on a customer invoice. So apparently even when an expense is billable it will remain as an expense in the P&L until it is actually billed to the customer by creating an invoice. 

Highlighted
Moderator

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Hello there, @Queen Bee 53.

 

Thank you for posting in the Community.

 

You're correct. You can mark bills, checks, expenses, as billable, and they'll show as an expense on your books. When you apply them to invoices, they'll show as income.

 

The following article contains more information about this: 

For additional help, you can also reach out to our Customer Care support. They have the tools that can help you get to the resolution quickly.

 

Here's how you can reach them: 

  1. Sign in to your QuickBooks Online account. 
  2. At the top right, click the Help icon. 
  3. At the bottom, click Contact Us

That should take care of it. 

 

Drop me a comment below if you have any other questions about the P&L report. I'll be happy to help you further. Wishing you and your business continued success.

Highlighted
Level 1

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

I just converted my QB desktop to QB online. It took all my inactive clients and made them active, and put all these strange bills  in past years - Billable Expense Charge and showing them OPEN

This will really mess up my books to date.

How do I get rid of these without messing up my books?

It won't let me make them inactive again cause they show a balance due/open. :-/

Thanks

Highlighted
Moderator

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Hello there, BlueJeans7.

 

Thank you for posting here in the Community. I'm here to provide additional insights about importing from QuickBooks Desktop to QuickBooks Online.

 

When converting from the Desktop version, you'll need the Plus or Advanced edition of QuickBooks Online. In addition to that, Simple Start and Essentials don't have inventory-tracking functionality.

 

To correct the conversion, I recommend reaching out to our Phone Support Specialists. They'll be able to check your account and assist you with the information you need to correct.

 

I'm adding the steps below for you to reach them:

 

  1. Go to: https://help.quickbooks.intuit.com/en_US/contact.
  2. Select QuickBooks Online.
  3. Choose a topic.
  4. Scroll down and click Get Phone Number.

If you have additional questions concerning the process, please let me know by posting a response below. I'll be here to help.

Highlighted
Level 1

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Are you able to do this with the simple start package? Thank you in advance

Highlighted
Anonymous
Not applicable

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Hello, Burnett bill.


The billable expense feature is only available in Essential, Plus and Advanced version of QuickBooks Online. While the tracking inventory feature is only available in Plus and Advanced version. 


If tracking inventory and recording billable expense is vital for your business, I’d recommend upgrading your subscription. For further information, please check this article: https://quickbooks.intuit.com/community/Help-Articles/How-do-I-upgrade-my-QuickBooks-Online-subscrip...


Stay in touch if there’s anything we can help you about QuickBooks.  

Highlighted
Level 1

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Help

 

I want to make my supplier invoices I enter billable to my client.

 

I have turned on all the settings but when I click save in the invoice I am entering I get an error saying

 

Something's not quite right
An account you chose for a billable expense doesn't have an income account associated with it. Before you save this transaction, you need to make that association, or the income won't be reported correctly. Tip: Open a new browser window, edit the account and make the association, and then Save in this window.
 
How do I solve this?
 
Using Quickbooks Online
 
Thanks
 
Ruth
Highlighted
Moderator

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Thanks for joining this conversation, @ruth14.

 

Allow me to chime in and share some information about the error message you're getting when entering a billable expense in QuickBooks Online (QBO).

 

A possible reason why you're having this error is that you might have chosen the second option (In multiple accounts) when you turned on the Track Billable expenses and items as income in your company settings.

 

Here's a sample screenshot.

 

40.PNG

 

If that's the case, you need to assign the desired billable expense account(s) to an income account to get rid of the error message. Here's how:

 

1. On your QBO account, click the Gear icon at the top and pick Chart of Accounts under Your Company column.
2. Locate the desired expense account and click Edit on the Run Report drop-down under Action column.
3. On the Account screen, check the Use for billable expenses and select the desired Income Account from the drop-down menu.
4. Click Save and close.

 

41.PNG 42.PNG

 

Once done, recreate the billable expense again, and you should be able to save it. For more information, you can also check out these articles for further guidance:

 

 

That should get you pointed in the right direction. Please let me know how it goes so I can get back to you. I'm only a few clicks away if you have any additional questions. Cheering you to continued success!

Highlighted
Level 1

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.


@Angelyn_T wrote:

You're always welcome, @sinkfork.

 

Please know that our doors are always open here in the Community. Don't hesitate to add a post if you have any other QuickBooks concerns in the future. Wishing you the best!


I am using 


@Angelyn_T wrote:

You're always welcome, @sinkfork.

 

Please know that our doors are always open here in the Community. Don't hesitate to add a post if you have any other QuickBooks concerns in the future. Wishing you the best!



@Angelyn_T wrote:

You're always welcome, @sinkfork.

 

Please know that our doors are always open here in the Community. Don't hesitate to add a post if you have any other QuickBooks concerns in the future. Wishing you the best!



@Angelyn_T wrote:

You're always welcome, @sinkfork.

 

Please know that our doors are always open here in the Community. Don't hesitate to add a post if you have any other QuickBooks concerns in the future. Wishing you the best!


 

Highlighted
Level 1

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

New to QB and setting it up for a friend's mechanic shop. The billable feature looks like what I need to use, especially since the item list is a defined purchase and sale price per item - that is definitely not the case. E.g. tires for a small car vs tires for a truck: not purchased nor sold at the same prices. 

 

My question: the parts are purchased on an account for which we receive the bill at the end of the month. The customer pays for the car repairs (& parts) when they pick up the car. So if a customer pays their invoice in the beginning of the month but we don't "pay" for the parts until the end of the month, do we still put the line items on the bill as "billable" and assign to a customer job in order to track the difference in purchase vs sale price per customer/job? Also, since the parts are purchased for customer jobs, do we pay the bill from "Parts Purchase COGS" account?

Highlighted
Anonymous
Not applicable

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

Thank you for joining in the thread, @p968073.

 

I'm here to help answer your questions about using the billable feature. 

 

We can track purchases of the parts as bills. If you'll charge the customer for the purchased parts, then you can tag the bills as billable.

 

If the parts are tracked as inventory then you can track this as COGS. However, for single-use parts such as paints, you can track this as an Expense.

 

For other related articles you can use in the future, you may also refer to this helpful link: Income and expenses for QuickBooks Online.

 

Let me know if you have other questions about your sales and purchase transactions. I'll be here to help.

Highlighted
Level 1

What is the billable expense income account? Trying to keep simple books, and just have 2 accounts - services and sales - but on some invoice QB sends it to this account.

I don't see this option... was there a system update that it now exists somewhere else?

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