QuickBooks Tips and Tricks: Billable Expenses

QuickBooks Tips and Tricks: Billable Expenses

Issue 10.02 - February 8, 2011

       
For the last few discussion forums, we have been discussing the concept of expenses which need to be billed back to the customer. With the 2011 line up, it is now possible to see expenditures coded to Cost of Goods Sold type accounts in the Time/Cost window when creating an invoice. This was a very welcome change. However, we have been in contact with an Intuit Product Development employee to document the bug we have found.

Set the Preference
To check how the preference is set in your QuickBooks file, choose Edit from the top menu bar then Preferences. In QuickBooks 2011 products, the Time and Expense preference is the last one, so you will need to scroll down to find it. The "Track reimbursed expenses as income" check box is a Company Preference so you will need to be logged in as Admin and single user mode in order to make any change. But you can view the preference in multi-user mode. Confirm that the box has been checked. If applicable, you can set a default markup percentage as well as the default account that will be used for the markup on this same screen.

Assign the Income Account to be Used for Expense Type Accounts
Choose Lists from the top menu bar and then Chart of Accounts. Scroll down to an expense account that would be used for expenditures to be included on an invoice. In single user mode, edit the account and place a check mark in the box to "Track reimbursed expenses in Income Acct." And choose the appropriate account. Note that the account does not have to be an Income type account, but that is usually what would be chosen.

Assign the Income Account to be Used for Cost of Goods Type Accounts

The bug we have discovered is that the ability to designate the account to be used when the reimbursed expenses are invoiced is not available for the Cost of Goods Sold type accounts. So while you can have these expenditures appear to be invoiced, the income will be recorded as a credit to the same account as was used for the expenditure.

As a resource for this and other questions, submit a question via "Ask the Expert" or attend our free, monthly discussion forum tele-class.

Bonnie J. Nagayama, CPA (925-247-0100) has been featured by Intuit in their QuickBooks Advisor Spotlight and frequently teaches and consults on using QuickBooks to its maximum advantage. For a FREE weekly newsletter of QuickBooks tips and tricks, plus many free and low cost QuickBooks resources visit www.4luvofbiz.com.
     
For further information, visit the following articles:
QuickBooks Tips & Tricks - Invoicing for Expenses (Free!)
Billable Expenditures Enhancements (Free!)
QuickBooks Tips & Tricks - Invoicing for Expenses (Subscription required)
Training New Staff (Subscription required)
Billable Expenditures Enhancements (Subscription required)

Date: 
Tuesday, February 8, 2011 - 12:28
Newsletter category: 
Accounting Software Secrets Tips & Tricks Newsletter