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J
JPCTransport
October 3, 2022
Question

Is it possible to reflect factoring/bank fees on an invoice?

  • October 3, 2022
  • 1 reply
  • 0 views

Does anyone know if it's possible to add an expense to an invoice? We are using a factoring company to process some of our invoices so that we get paid quicker. The factoring company keeps 2.75% of the invoice total plus a $10 ACH fee. I'm hoping there is a way to add it so that the incoming payment amounts will match up. The only way I can find around it is to put it in the discount field but I don't want to do that as it's technically a business expense? Does anyone have any ideas? Thanks in advance!

1 reply

Tori B
Tori B
October 3, 2022

How's it going, @JPCTransport? 

 

I hope all is well. 

 

I recommend using our Bill Expense feature. A billable expense is an expense you incur on your customer's behalf when you perform work for them. You can easily record and track billable expenses so your customer can reimburse them when they receive their invoice.

 

You'll need to turn it on from your account settings to use this feature. Then you can apply it to your invoices. Let me walk you through the steps below. 

 

To turn on the feature: 

 

  1. Go to Settings, then select Account and settings.
  2. Go to the Expenses tab.
  3. From the Bills and expenses section, click on Edit.
  4. Turn on the following:
    • Show Items table on expense and purchase forms
    • Track expenses and items by the 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. Tap on Save.

 

To enter the expense:

 

  1. Click on the  + New button.
  2. Choose the transaction (Bill, Expense, or Check) you want to create.
  3. Pick the payee.
  4. In the Category column, select the expense account for the transaction.
  5. Enter the description and amount of the expense, then select the Billable checkbox.
  6. In the Customer column, choose the customer you want to bill for this expense.
  7. Tap on Save and close.

 

Then finally, you can add it to the invoice. Here's how: 

 

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

 

Please know that before you make any changes to your Account, you should always consult with your accounting professional. If you don't have an accountant, don't sweat it. You can find one here in our Resouce Center. 

 

For additional details about this process, check out Enter billable expenses.

 

I'm always here to lend a hand should you have any questions or concerns. Have a good one!

J
JPCTransportAuthor
October 3, 2022

Thank you for your quick response! Do you know which plan I would need to be able to do this? It looks like I can't access it on my current plan. We are on Simple Start.

G
GlinetteC
October 3, 2022

Yes, JPCTransport.

 

The billable expense feature is only available in QuickBooks Online Plus and Advanced versions. 

 

You may consider upgrading your current subscription to the versions I've mentioned to utilize the billable expense option. Let me guide you on how:

 

  1. Sign in to QuickBooks Online as a primary or company admin.
  2. Select Settings and then Account and settings.
  3. Choose the Billing & subscription tab.
  4. Make sure your payment info is up-to-date.
  5. In the QuickBooks Online section, select Upgrade your plan.
  6. Review the available plans and then select Choose plan.
  7. Follow the on-screen steps to upgrade your plan.

 

For more details about the process, check here.

 

Let me share some of our guide articles related to tracking billable expenses you might need in your future tasks: 

 

 

Keep in touch if you need more assistance with the billable expense or anything about QuickBooks. I've got your back.

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