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M
markgroble
March 26, 2025
Question

How do I categorize an expense to a Customer for recievables

  • March 26, 2025
  • 1 reply
  • 0 views

I front money for Customers and get reimbursed. Instead of categorizing these expenditures in an expense account, I tried to categorize it as a reimbursement account and it sad to assign it to a Customer, but if the customer isn't showing to go to Preferences, Vendors and Purchases and turn on Expense Tracking By Customer. I can't find Preferences or any of these settings and the AI assistant answers here are way off. Can anyone help me out?

1 reply

E
EvethC
March 27, 2025

I appreciate that you are utilizing the AI assistant for QuickBooks, Mark. I'll clarify this matter further below.

 

The billable expense feature is available in QBO Plus and Advanced subscriptions. You can upgrade your subscription so we can turn on the functionality. Refer to this article: Upgrade or downgrade your QuickBooks Online or Intuit Enterprise Suite edition.

 

If you don't want to upgrade, we have a workaround that requires manual tracking. You can follow this process:

 

  1. Record the Expense associated with the correct expense category (account).
  2. Create an invoice for the customer with the affected item.
  3. Receive the customer payment deposit to Undeposited Funds.
  4. Create a Bank Deposit and link the payment and expense category.

 

Since you've already recorded the expenditure in Step 1, we can proceed to Step 2, which involves creating invoices for the full amount.

 

After that, we can record the payment through the Receive payment window. Make sure to deposit it to Undeposited funds accounts.

 

Now, let's deposit the payment to the affected bank you used for the expenditure. To do that, please follow these steps:

 

  1. Click +New.
  2. In the OTHER column, select Bank deposit.
  3. Under Select the payments included in this deposit, checkmark the payment.
  4. In the Add Funds to This Deposit section, select the expense account, then enter the amount.
  5. Make sure the amount to deposit is correct. 
  6. Hit Save and close.

 

 

 

 

Moreover, you can use this article to categorize transactions uploaded to QuickBooks Online: Categorize online bank transactions in QuickBooks Online.

 

Furthermore, consider utilizing QuickBooks Live Expert Assisted to simplify your accounting procedures, maintain accuracy in your financial records, and access expert support. This service can help you concentrate more on expanding your business.

 

Feel free to reach out if you have any more questions about recording and keeping track of your expenses! I'm here to help, so don’t hesitate to ask. Take care and stay safe!

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