Adds a “Use for billable expenses” checkbox to an account’s edit screen in the Chart of Accounts.
Category: Expense
In order to show Item details tab on Expense form, first, you need a Plus plan. Essentials and Simple Start does not have Item details tab feature.
If you have a Plus plan, you will need to check the following two setups:
1) Gear settings for Expenses – Gear at the top right corner > Your Company > Account and Settings > Expenses > Bills and expenses > Show Items table on expense and purchase forms > On > Save.
2) Product/Services information setup form – Gear at the top right corner > Lists > Products and Services > Select Add new button (or for an existing item, click “Edit” under Action column) > Purchase information > Select “I purchase this product/service from a vendor” checkbox > Save and close.
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Open an existing invoice. Look for an arrow pointing left at the top right corner (right to BALANCE DUE). Click that arrow You will find the Billable Expense sitting there and click Add. You will notice line item from the existing invoice and added a billable expense line item. Delete line item from an existing invoice. Now, you have linked billable expenses to an invoice and the total invoice amount remain the same.
If you have created a Vendor Purchase Order, you will see “Copy to bill” on the right side. You can convert the PO to a Vendor Bill. If you’ve already created Bill (Check or Expense) for that PO, you can choose “Add to” from the right panel, then it will close the PO.
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.
Click Save.
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This has to do with reflecting accurate direct expenses related to customers on Income by Customer Report.
If you are depositing a vendor/supplier refund for an expense that was previously Billed to a customer, select “Track returns for customers” box and choose that same customer on the deposit and mark it Billable.
For example, if you buy a material for a customer’s job, you would bill the expense to the customer. But if the customer later returns the material to you and you return it to the vendor/supplier for a refund that you are depositing, you need to mark the deposit billable to that same customer and also select “Track returns for customers” box. Otherwise, it will show as customer billed for the material expense, and the vendor credit will not appear on Income by Customer Summary Report.
Here is an example of what happens when $1,000 billable purchase returned to the supplier for a refund and deposited that money in the bank. The goal is to show zero expense related to that customer.
SHOWING RESULT WITHOUT BILLABLE AND RETURNS FROM CUSTOMERS
SHOWING RESULT WITH BILLABLE AND RETURNS FROM CUSTOMERS
WATCH VIDEO
QuickBooks Online Plus: Track returns for customers box on Deposit Form
First, you will need to create a new dummy bank account. You will also need a due to the owner as a liability type account to use it for later reimbursement.
Step#1 Use bank deposit form (create + sign > other > bank deposit) to record contributed amount by the owner to pay a contractor. Account to show as due to the owner liability type account. See screenshot below.
Step#2 Use Expense form (create + sign > vendor > expense) to create contractor expense posted to appropriate expense account. See screenshot below.
Step#3 Use Check form (create + sign > vendor > check) to write the reimburse check to the Company Owner. See screenshot below.
In case there is no need to reimburse the owner (step#1), you will use a capital contributed account which would be an Owner’s Equity type account.
Review of 1099 vendors and payments list. See screenshot below.
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