Use imported receipts to create expenses against vendor and apply to customer invoice

Hi there, audreybrw.

You can use the billable expense feature in QuickBooks Online to achieve your goal. It's use to incur on your customer’s behalf when you perform a work for them.

The first thing you need to do is turn on this feature. Here's how:

1. Go to Settings ⚙, then select Account and settings.
2. Proceed to the Expenses tab.
3. From the Bills and expenses section, click 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. (Optional) Set up the following:
   • Markup rate
   • Billable expense tracking
   • Sales tax charge
6. Bill payment terms.
7. Click Save.

Once done, create an expense to bill a customer.

1. Click + New.
2. Select the transaction (Bill, Expense, or Check) you want to create.
3. Choose a payee.
4. From the Category column, select the expense account for transaction.
5. Enter the description and amount of the expense, then mark the Billable box.
6. From the Customer column, select the customer you want to bill for this expense.
7. (Optional) Enter or make sure the markup % is correct, then select the Tax checkbox or choose a tax agency if you want to charge tax.
8. Click Save and close.

Now you can add billable expenses to invoices by linking these two transactions.

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

To add a fee to the invoice, you can browse this article as a guide: Learn how to include a service fee for products or services you sell to customers.

When it's time to pay bills or record invoice payments, you can browse these articles for the steps.

• Record invoice payments in QuickBooks Online
• Learn how to track bills and record the payments.

Get back to me if you have additional questions about the steps above. Just leave a comment below and I'll get back to you.

I just tried making this change, and I only have 'Show tag on expense and purchase forms' and 'Bill payment terms' as options on the Bills and Expenses tab.  I have the Quickbooks Online Essentials subscription.