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luckiestwoman
January 31, 2023
Question

Can anyone tell me how I add a reimbursement item to my client’s invoice?

  • January 31, 2023
  • 1 reply
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I need to add a line item for reimbursement of mileage costs (at a pre-agreed rate) to my company invoice. I have already set up my staff member's reimbursement account in expenses (which will be the same amount as I am claiming from the client) so this is a 'cost of sale'. Also, the staff member will not charge GST, however we charge the client GST so do I include GST in either or both transactions? I am meeting with our accountant later in the week but want to send this out today, so hoping someone might have some quick advice.

1 reply

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IntuitAika
January 31, 2023

Hi luckiestwoman,

 

Thanks for posting in the Community! Do you incur expenses on your customer’s behalf when you perform a work for them? If yes, you can enter it as a billable expense in QuickBooks Online.

 

Here's how to enable billable expense tracking:

 

  1. Go to Settings ⚙, then select Account and settings.
  2. Go to the Expenses tab.
  3. From the Bills and expenses section, select Edit ✎.
  4.  Turn on the following:
  • Show Items table on expense and purchase forms
  • Track expenses and items by customer.
  • Make expenses and items billable.
    5. Bill payment terms.
    6. Select Save.

 

On the reimbursement you've entered as an expense, you can tick on Billable and make sure that you've selected a client you want to bill for this expense on the Customer/Project column.

 

To reimburse the cost, link the billable expense to your customer's invoice:

 

  1. Select + New and then select Invoice.
  2. In the Customer ▼ dropdown menu, select the customer you created a billable expense for. This opens the Add to invoice window.
  3. Select Add on the billable expense you want to charge to your customer.
  4. Select Save and close.

 

You can assign the GST code on the transaction where you need to charge a GST on it. However, we recommend to consult an accountant for further assistance and guidance on what is the right way to record this for your business.

 

For your reference, you can also check on this article: Enter billable expenses.

 

Feel free to post again if you have any other questions. I'll be around to help you. Have a great day! 

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