The billable feature is available only in QuickBooks Online with Plus plan.
When you select “Billable” Expense checkbox field, you must also select a Customer/Project field each split line that is billable. If you don’t select Customer/Project field, you will get an error message. You can’t the save the transaction. (If you’ve Markup percentage turned on from the settings, you can also choose that field to alter that billable invoice amount).
By selecting “Billable” checkbox and Customer/Project field, it will do two things:
1) It will create an expense from that vendor.
Checking billable allows you, when you create an invoice, to move that expense to the invoice without having to retype it.
2) It also allows you to create an invoice to move those expenses automatically to the invoice without having to retype it again. In other words, you will see all open expenses ready to be included when you are ready to create invoices. Just create an invoice, select customer and right side Add to Invoice panel will open. You can choose “Add all” or each billable item.
To turn on the Use Billable Expenses preference:
Choose the Gear icon at the upper right corner > Your Company / Account and Settings.
Choose Expenses from the menu on the left.
In the Bills and expenses section, check on the Edit icon.
Place a check in the box to Make expenses and items billable.
Optional: you can also select Markup with a default rate of xx% box.
You may see two accounts for UNAPPLIED cash payments if you report Profit and Loss on a cash basis. It will automatically trigger to these two accounts simply because you have entered certain deposit and payment transactions differently than normal flow in QBO.
These two accounts are automatically added to the Chart of Accounts when the new company file is created. You can’t delete or change these two accounts.
Here is the main reason that will trigger these two account types in QBO:
Triggers “Unapplied Cash Payment Income” when the date of the customer deposit date is before the invoice date it’s applied to.
Triggers “Unapplied Cash Bill Payment Expense” when the date of the vendor payment date is before the bill date it’s applied to.
Example of “Unapplied” Customer Deposit and Vendor Payment transactions
Changing “Invoice” and “Bill” dates to be prior to payment dates should work for most transactions in this account. However, there may be other unknown circumstances where the issue may not be easily fixed. In that case, you will need to analyze each transaction and resolve the matter. Or get help from the expert.
This video will show how to fix “Unapplied Cash Payment Income” and “Unapplied Cash Bill Payment Expense” on a cash basis Profit and Loss report.
When you enter a check (create + sign > check), there is a memo section on the bottom left the side of the check (see attachment below). If you have text entered in that memo area, it will print on a check.
However if you enter a bill (create + sign > bill), even if you’ve entered text entered in that memo area, it will not print on the check when select pay bills (create + sign > pay bills).
If you need to print a fixed memo line like the account number or a specific memo line message on a check print, you can select “account number” field on vendor information page (see attachment below). That way it will print the same memo line on specific vendor checks all the time.
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I made a large purchase that had to be paid with multiple payment sources.
I can find lots of information for splitting a single payment into multiple expenses, but how does one go about recording the opposite case? For example, a $10,000 expense that was paid $6,000 from a checking account and $4,000 on a credit card account.
Start with entering a Bill for this purchase of $10,000
From the home page screen > Create + sign > vendors > bill
Fill out bill form. See attached photo 1 for reference.
Then use Pay Bills, and pay by using the bank checking account for that $6,000 part. Then, Pay bills, and do the credit card account for $4,000 part.
From the home page screen > Create + sign > vendors > pay bills
See attached photo 2 for manual check payment reference.
See attached photo 3 for credit card payment reference.
You can get there by clicking the Customize button tab at the bottom (middle section) of the Invoice, Estimate, and Sales Receipt. Select “More” > Check boxes to show Billable to include employee name, hours and rate.
You can also get there from the Company Gear (upper-corner) > Company Settings under Settings header > Sales > Customize > Customize look and feel button > Select More > Check boxes to show Billable to include employee name, hours and rate.
NOTE: This newly added feature is not yet available on all newer QBO versions. That’s what I heard from actual users.