Thank-you for this reply. However, what you have shown is another workaround to the problem. Please consider this from the perspective of a QB user. I am not specifically choosing a customer to be associated with an item from within a bill. This is happening AUTOMATICALLY within QB when a PO is created directly from a Sales Order. To work around this, I can change EVERY item on EVERY PO so that it does not reflect which customer it is for, OR I can uncheck the "billable" box for EVERY ITEM when a bill is created for it. Neither of these workarounds are a good long term solution. It takes a lot of time and, frankly, users WANT to know what customer something is for even if the item is not "billable" to that customer.  In my world, items are billed to the customer via an INVOICE that is created directly from the Sales Order and I have little need for the "billable" option. However, I spend a WHOLE LOT of my time unchecking "billable" boxes that should not be checked as a default.  

Here is an example:

1. I create and SO 111 for customer X who orders item1

2. I create a PO directly from within SO 111 which will create a PO to the vendor for item1. Customer X will automatically appear in the Customer field for the PO.

3. When we receive item1 and create a bill, item1 is automatically and incorrectly marked "billable".

4. This is a BUG. item1 should not be assumed to be billable because I will be creating an INVOICE from SO111 to bill the customer for item1. There is a preference that is supposed to stop this from happening but it does not work. 

When I initially reported this problem, someone there at QB reproduced it and determined it was a BUG that should be fixed. 

Please, we have seen a number of work arounds already. They are all time consuming and annoying. QB is NOT working as it should. Can we agree this is a BUG and get it fixed?