Steps to Enter Billable Expenses in QuickBooks
Usually, the billable expense is the expense you earn when you do something on the behalf of your client. This provides easy recording and tracking in your business or company bills expenses with the help of these features so that your customer can refund them, and also that time when they receive their bills or invoices.
Note: – You can enter the applicable percentage if you want to mark the cost. A billable expense can be defined as an expense recorded as a saved transaction or a non-posting transaction.
Step 1: Turn-on billable expenses tracking in settings.
For the recording of billable expenses, turn-on the billable expense tracking from settings.
- Open Settings, click ‘Account and Settings’.
- Click on the ‘Expenses’ tab.
- Choose ‘Edit’ from the Bills and expenses drop-down.
- Choose from the following:
- Show purchase forms and items table on expense.
- Customer’s Track expenses and items purchased.
- Making expenses and items billable.
- Structured the following (Optional Step)
- Mark-up rate
- Tracking Billable expense
- Charging of Sales tax
- Terms and conditions of Bill payment
- Click ‘Save’, then ‘Done’.
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Step 2: Enter a billable expense
Below steps to bill a customer for an expense.
- Click on the ‘New’ option.
- Choose the type of transaction like Bill, Expense, Check, whichever you want to generate.
- After that, Choose the payee.
- Choose the expense account for the transaction from the Category column.
- Enter the information and the total amount of the expense, then click the Billable checkbox.
- Then, From the customer column, choose the customer you want to bill for this expense.
- Ensure the markup percentage (%) should be accurate. If you want to levy a tax, then click on the Tax checkbox or choose a tax agency (Optional Step)
- Click on ‘Save’ and close the application.
When the screen displays this message, “Something’s not quite right”.
When you are in the middle of the process, and you see this error at that time. Also, the expense account you choose isn’t linked to the income account. In order to fix them, follow the below steps:
- Proceed to the Settings menu. Click the ‘Chart of Accounts’ option.
- Move to the small icon on the expense account located under the ‘Action column’. Select ‘Edit’.
- Then, select the ‘Use for billable expenses’ checkbox.
- Select the account to link in the Income Account dropdown menu.
- Click ‘Save’ and close the application.
Step 3: Add billable expenses to invoices & Bills.
For refunding the expense, you need to link your customer’s invoice to the billable expense.
- First, Click on the ‘New’ option.
- After that Click on ‘Invoice’.
- From the customer dropdown menu, choose the customer for whom you created a billable expense. The screen opens the ‘Add to invoice’ window.
- Choose ‘Add’ on the billable expense you want to charge to your customer.
- Click ‘Save’ and close.
This article covers the maximum possible information about the QuickBooks Billable Expenses. If you still get any queries or want any QuickBooks Professional help, feel free to contact this number: +1-877-349-3776.
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