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emjholder
September 30, 2022
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Projects

  • September 30, 2022
  • 1 reply
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What is the difference between "billable expense income" and "job supplies and materials"? I understand that BEI is the expenses that are billed back to the customer but all of my jobs supplies and materials are billed back.

Best answer by KlentB

Hi there, emjholder.

 

Supplies and materials are the raw goods and parts used or consumed when producing a product or providing a service. They'll become a billable expense when you purchase something on your customer's behalf when you perform a work for them. 

 

Take note that the classification would depend on the account you've selected upon setting up the product and service items. If you've set the Billable Expense Income or Supplies & Materials - COGS account as the income and expense account, then transactions will be posted to that category. You can review your product and service list to verify this. HEre's how:

 

  1. Go to the Sales menu.
  2. Select the Product and services tab.
  3. Open product and service items.
  4. Review the income and expense account. 
  5. Make the necessary changes, then click Save and close.

Stay in touch with me if you need more help in managing your expenses and projects. Have a good one.

1 reply

Adrian_A
Adrian_A
September 30, 2022

Hi emjholder,

 

I'm here to emphasize the difference between billable expense income and job supplies and materials.

 

The billable expense income is the revenue generated by purchases made on behalf of a client or customer. On the other hand, supplies and materials can mean the same thing. While Materials include raw materials that will be converted into finished goods, supplies is a category of items your company needs. 

 

If you want to set up projects, you can check this article: Set up and create projects in QuickBooks Online.

 

Feel free to mention my name if you have concerns about projects.

    E
    emjholderAuthor
    September 30, 2022

    Adrian_A,

    Thank you for differentiating between billable income expense and supplies and materials. 
    We are a general construction business so the billable income expense is just a product we purchase to build something and charge it to the customer.  We don't get an actual income from this purchase.
    I have these items marked as supplies and materials which when added to the bank register are marked as billable income expense.  

    Under income on my projects I have billable income expense. All of my supplies and materials should be billed back yet some go to expenses as job supplies and materials.  If they are all entered the same why are they classified differently?

    Thank you.

    KlentB
    KlentBAnswer
    October 1, 2022

    Hi there, emjholder.

     

    Supplies and materials are the raw goods and parts used or consumed when producing a product or providing a service. They'll become a billable expense when you purchase something on your customer's behalf when you perform a work for them. 

     

    Take note that the classification would depend on the account you've selected upon setting up the product and service items. If you've set the Billable Expense Income or Supplies & Materials - COGS account as the income and expense account, then transactions will be posted to that category. You can review your product and service list to verify this. HEre's how:

     

    1. Go to the Sales menu.
    2. Select the Product and services tab.
    3. Open product and service items.
    4. Review the income and expense account. 
    5. Make the necessary changes, then click Save and close.

    Stay in touch with me if you need more help in managing your expenses and projects. Have a good one.

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