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bgoon
November 4, 2024
Question

Markup on billable expenses

  • November 4, 2024
  • 1 reply
  • 0 views

Firm pays for services for a customer. I enter them as a bill to a COGS account and mark them as billable to customer. Firm invoices customer. I expected the markup on the invoice to post to the corresponding income account I setup on the COA COGS account under "use for billable expense- enter income account." However it is posting to a seperate income account called "markup." What good is setting them up on the chart of accounts screen if the billable expense's markup does not post there? How do I get the markup on the items to post to the correct income account?

1 reply

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ZarahHillarey_T
November 4, 2024

I can help you set up the correct income account in QuickBooks Online, @bgoon.

 

Firstly, you must delete the existing invoice to successfully correct its income account. To do so, here's how:

 

  1. Go to Sales menu located from the left  navigational panel, then select Invoices. 
  2. Find the specific invoice.
  3. Under the Action column, click the dropdown button, then Delete.

Once you've turned on your Make expenses and items billable from your Expense tab, your Chart of accounts will automatically set up as Billable Expense Income. If you want to change this, you can go to your Accounts and settings, then select your preferred account to ensure your invoices will go to its correct account. Please follow the steps below to complete this process:

 

 

 

  1. Go to the Gear icon, then Accounts and settings. 
  2. Navigate to the Advanced menu, then Chart of accounts section.
  3. Click the pencil icon, then from the Markup income account select the appropriate account. 
  4. Hit Save and Done.

Afterward, recreate the deleted invoice and make sure to add the billable expense from the Suggested transaction. To confirm if the invoice is located at the right account, you can check it from your Chart of accounts. Here are the steps you can follow:

 

  1. Go to the Gear icon, then Chart of accounts. 
  2. Find the accounts, then Run report. 
  3. Verify if the invoice transaction you've created is there.

You can also refer to this article if you want to view all bill payment voucher in QuickBooks: Show all items on the Bill Payment voucher.

 

Feel free to get back to this post if you have other concerns about markup billable expenses in QuickBooks. I'll be around to help you anytime.

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bgoonAuthor
November 5, 2024

Thanks but I want the markup to go to different income accounts as setup in the COGS account settings. Is that not possible?

Bryan_M
Bryan_M
November 5, 2024

It's good to see you here again, @bgoon. I'll show you how to change the Markup income account setup based on your COGS.

 

The Markup income account depends on what you set up from the Account and Settings tab.

 

For the QuickBooks system to follow the setup in your COGS, you'll need to change the Markup Income account. Here's how: 

 

  1. Click the Gear icon and select Account and Settings.
  2. Click the Advanced tab.
  3. Scroll down and click the Chart of Accounts.
  4. After that, click the dropdown icon of the Markup income account. Then, select the account that you set up in your COA COGS.
  5. Once finished, click Save and Done. 

 


 

I'll also add this article to help you match your real-life bank and QuickBooks statements: Learn the reconcile workflow in QuickBooks. 

 

The Community family is always here to answer your queries about setting up your bills and income accounts in COA. Just leave a comment below, and we'll respond once notified. Thank you, and have a good day.

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