How do I track reimbursable expenses?

Legacy KB ID: 158

Question

How do I track reimbursable expenses?

Answer

What is a reimbursable expense?

Reimbursable expenses are costs that your business incurs on behalf of customers. These costs can be direct expenses, items purchased, or services contracted that are charged back to specific customers.


You can charge a customer for reimbursable expenses by assigning the expense to the customer when you incur it, and then transferring the expense to an invoice or statement charge.


Solution: How to assign reimbursable expenses.

When you record expenses, you can assign part or all of the expense to a customer or job. Later, QuickBooks can recall the amount and add it as a line item to an invoice, sales receipt, or statement charge.


To assign reimbursable expenses:

1) Open the form where you want to enter the expense. It can be a cheque, credit card charge, bill, item receipt, or a special transaction (General Journal Entry).


2) Choose the supplier from the supplier drop-down list, and enter any supplier-related information.


3) Enter the expenses and items. - If you're recording a direct expense such as freight or shipping, enter the expense on the Expense tab. - If you're recording customer or job related items or services contracted, enter the item or service you purchased on the Items tab.

- Note: Any description information you manually enter on the Items tab is not transferred to the invoice. The invoice uses the description from the New/Edit Item window.


4) In the Customer:Job field of the detail area, enter the name of the customer or job that you want to assign the expense. - If you are assigning the expense to a job, enter the customer's name followed by a colon (:) and the job name. For example, Fred Ahl:Kitchen.


5) Indicate in the billable column (the column headed by the small invoice icon) whether to pass this charge through to the customer.

Note: If the invoice icon does appear in the billable column, you probably selected an account that is not an Expense or an Other Asset type of account.

- If the expense is billable to the customer, leave the invoice icon next to the customer's name as it is.

- If the expense is not billable to the customer, click on the invoice icon next to the customer's name to mark an "X" through it. (Clicking on the invoice icon again removes the "X".)

- TIP: You may want to attribute an expense to a customer but not make it billable. For example, you may need to redo a job without charging the customer, but still need to track the expenses incurred on behalf of the customer.

After you record the invoice that includes the expense, the invoice icon is grayed for that expense, indicating that you have billed the expense to the customer.

 

6) (Optional) If you are assigning only part of the expense to this customer or job, select the amount shown in the Amount column, and enter the amount you want to assign.


7) Click OK to record the expense.

TIP: If you delete the invoice or the invoice line containing the reimbursable expense and you want to invoice the customer again, go back to the form where the expense is recorded. Mark it as billable by clicking on the grayed invoice icon next to the customer or job.


Need more help?

Ask the Reckon Community at: https://community.reckon.com/categories/reckonaccounts

Or Log a Support Ticket: https://www.reckon.com/au/support/

How did we do?

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