What does checking Billable box do in QuickBooks Online

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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Enter a weekly timesheet

Create Employees > Create “+” sign at the top middle of the QBO homepage screen, in between magnifying glass and clock icon > Employees > Weekly Timesheet
You will need a Plus plan for this activity.

Enter a weekly timesheet

  1. Choose a name from the list. An employee or a Vendor name for Independent Contractor.
  2. Select the week for which you want to record activities.
  3. Select a customer if you want to bill the activity to a customer or track expenses for a customer.  If you don’t see this custom field, see below for to enable bills and expenses to a customer.
  4. Select a service. If you use services to enter time, choose a service that represents this activity from the products and services list. If you need new service item, see below for setup.
  5. Select a class. If you don’t see this custom field, see below for to enable class tracking.
  6. Select a location/department. If you don’t see this custom field, see below for to enable location/department tracking.
  7. Description field. (Optional) Edit a description of the activity if necessary. If the activity is billed to a customer, the Description appears on their invoice, depending on your company settings. Text for the description appears automatically from the Sales Information field once you select a service item.
  8. Billable. If you are billing the activity to a customer, select the Billable checkbox. If you are allowed to change the rate at which an activity is billed, make sure that Bill at rate/hr is correct.
  9. Select Taxable if the activity is taxable.
  10. For each day of the week this activity occurred, enter the number of hours spent on this activity for that day. You can add more activity lines if needed or clear all lines and begin again. To change First day of work week on a weekly timesheet form, see custom field table below.
  11. Note: If activities for this week are similar to last week’s, you can copy last week’s timesheet. To do so, click Copy Last Timesheet at the bottom of the form.
  12. Click Save and close (or Save and new to enter another time activity).
  13. See Custom Field Table below.

 
weekly-timesheet
 

Custom Field Table (need PLUS plan)

Location/Department
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Categories > Track Locations > ON
 

track-locations
 

Class
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Categories > Track Classes > ON
 
track-classes
 

Customer
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Time Tracking > Make Single-Time Activity Billable to Customer > ON
 
make-single-time-activity
 

Service
From the home page screen > Company gear wheel icon at the upper right corner > Lists > Products and Services > New > Time Tracking > Service > Fill out Name, Sales Information, Sales price/rate (hourly rate) > Income Account
 
service-rate
 

Show Billing Rate Box
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Time Tracking > Show billing rate to users entering time> Checkbox

 
show-billing-rate
 

First day of work week
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Time Tracking > First day of work week > Select Day from the list > Save.
 
first-day-of-work-week
 






Enter a single time activity

Create Employees > Create “+” sign at the top middle of the QBO homepage screen, in between magnifying glass and clock icon > Employees > Single Time Activity.
Note: You will need a PLUS plan to enter this activity.
Enter a single time activity

  1. Choose a name from the list. An employee or a Vendor name for Independent Contractor.
  2. Enter the date the activity occurred.
  3. Select a location/department. If you don’t see this custom field, see below for to enable location/department tracking.
  4. Select a class. If you don’t see this custom field, see below for to enable class tracking.
  5. Select a customer if you want to bill the activity to a customer or track expenses for a customer.  If you don’t see this custom field, see below for to enable bills and expenses to a customer.
  6. Select a service. If you use services to enter time, choose a service that represents this activity from the products and services list. If you need new service item, see below for setup.
  7. If you are billing the activity to a customer, select the Billable checkbox. If you are allowed to change the rate at which an activity is billed, make sure that Bill at rate/hr is correct.
  8. Select Taxable if the activity is taxable.
  9. Enter the amount of time worked in Time. Or, select Enter Start and End Times to enter the time you started and ended work.
  10. For time break if any, select break time to subtract summary billable time.
  11. Enter description of the service type to override if necessary.
  12. Click Save and close (or Save and new to enter another time activity).
  13. See Custom Field Table below.

 
single-time-activity
 

Custom Field Table (need PLUS plan)

Location/Department
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Categories > Track Locations > ON
 

track-locations
 

Class
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Categories > Track Classes > ON
 
track-classes
 

Customer
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Time Tracking > Make Single-Time Activity Billable to Customer > ON
 
make-single-time-activity
 

Service
From the home page screen > Company gear wheel icon at the upper right corner > Lists > Products and Services > New > Time Tracking > Service > Fill out Name, Sales Information, Sales price/rate (hourly rate) > Income Account
 
service-rate
 

Show Billing Rate Box
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Time Tracking > Show billing rate to users entering time> Checkbox

 
show-billing-rate
 

First day of work week
From the home page screen > Company gear wheel icon at the upper right corner > Your Company > Account and Settings > Advanced > Time Tracking > First day of work week > Select Day from the list > Save.
 
first-day-of-work-week
 






Why mark it billable to a customer and select “track returns for customers” box on a bank deposit

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

deposit without billable-and track returns for customers
deposit without billable-and track returns for customers
income by customer summary without billable track returns from customers
income by customer summary without billable track returns from customers

SHOWING RESULT WITH BILLABLE AND RETURNS FROM CUSTOMERS

deposit with billable and track returns for customers
deposit with billable and track returns for customers
income by customer summary with billable track returns from customers
income by customer summary with billable track returns from customers

 
WATCH VIDEO
QuickBooks Online Plus: Track returns for customers box on Deposit Form


 





 

How to use track return for customers field shown on deposit form

“Track returns for customers” has to do with whenever you invoice your client for billable expenses (time and material) and the client pays less (for a variety of reasons) than invoice amount. This is a way to correctly track returns for customers account and receive payment to match deposit amount. In case, you will need to invoice deduction portion (same client or different client), you will also check billable box.
See screenshot below.

track returns for customers
track returns for customers

Note: Billable to customers feature option is available in PLUS plan only (not available in Essentials and Simple Start).

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How do I add additional billable time and expense to an already created current invoice

In order to add additional unbilled time and expense, first open existing invoice. You can open it directly from the create + sign, select invoice under customers, and from upper left corner select invoice in question to open from the recent transactions. You can also open directly from the customer’s page under customers center.

Once the invoice is open, you will take the following steps:

1) Go far to the right corner of the invoice column and choose delete trash icon. See attachment below.
2) New Unlink the billable message screen will open. Select “Yes, unlink it” blue button. See attachment below.

unlink billable
unlink billable

3) Now “Add to Invoice” will open on the right-hand window panel. Select “Add all” or “Add” single billable item as needed. See attachment below.

add to invoice billable
add to invoice billable

4) Review and make other field changes if needed. Save. See attachment below.

new invoice
new invoice

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