Products and Services Setup: should reimbursable expenses to clients under Expense account field mapped to income or COGS account?
For example, we purchase various items for our clients. We then enter vendor expenses, select markup, customer name and bill back to the clients.
Vendor expenses should always point to an expense account either as Costs of Goods Sold (COGS/COS0) or expense account, regardless of whether they are billable or nob-billable expenses.
Income account field should point to an income account only, this comes from invoicing to clients.
enter purchases from vendors = COGS or expense account
invoicing purchased items to client = income account
There should not be netting the purchase and the income from invoicing in one account.