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A
aziz3210
August 28, 2020
Question

Mileage does not show as an expense UK

  • August 28, 2020
  • 1 reply
  • 0 views

So far i have done 684 miles and at 45p per mile it works out to £307.80

 

I have read other posts and people have said that mileage is not regarded as an expense but it is something that is done in the form of a tax reduction or that you need to add it onto expenses manually.

 

Can someone please give further information as to whether the mileage needs to be manually added as an expense if so then how?

1 reply

AlexV
AlexV
August 28, 2020

Hello there, aziz3210.

 

Welcome to QuickBooks Community! Let me show you how to add mileage to your expenses.

 

We can create an expense transaction for the mileage. But first, you'll have to add yourself or your employee as a supplier.

 

Then, go to your Chart of Accounts and set up an expense account that we'll use in tracking it. Simply go to the Accounting tab, select Chart of Accounts, then click New.

 

Once done, let's set up mileage as a product or service. You can follow these steps:

  1. Go to the Sales or Invoicing tab and select Products and Services.
  2. Click New, and then select either Non-stock or Service.
  3. In the Sales information section, check I sell this product/service to my customers.
  4. In the Purchasing information section, check I purchase this product/service from a supplier.
  5. Enter a description and the cost that you pay per mile, then assign the mileage expense account you just created.
  6. Hit Save. 

We can use the Bill or Expense feature when tracking it. Simply go to the + New button and select either of the two. You can refer to this article if you need to make as a billable expense.

 

Please feel free to keep in touch if you have more questions. We'll respond as soon as we can.

A
aziz3210Author
August 29, 2020

Hi how can i add myself as a supplier?

 

How do i set up an expense account from chart of accounts?

 

When everything is set up properly does the expense automatically increase as you do further miles or do you need to create another mileage expense transaction or edit it with those instructions you have given?

R
RaymondJayO
August 29, 2020

I'll provide the details and fixes for this, @aziz3210. 

 

First, let's go to the Supplier Information window to add yourself as a supplier. You can add "Mileage" to the end in the "Display name as" field since the system doesn't allow duplicate names. I'll guide you how. 

  1. Go to Expenses from the left menu and select Suppliers.
  2. Select New supplier.
  3. In the Supplier Information window, enter the same name format with your profile. 
  4. Add "Mileage" to the end in the "Display name as" field to determine which supplier profile to pick to track mileage. For example, I used "Sample Supplier Mileage" for this. 
  5. Click Save.

 

The screenshot below shows you the last three steps.

 

Second, let's go to the Chart of Accounts menu to set up an expense account. I'd suggest consulting your accountant to determine the appropriate detail type for mileage reimbursement. Once confirmed, proceed with the steps below. 

  1. Go to Accounting from the left menu and select Chart of Accounts.
  2. Click New.
  3. From the Account Type drop-down menu, select Expenses.
  4. Choose the appropriate Detail Type. 
  5. Enter the account name, such as Mileage Expense. 
  6. Select Save and Close.

 

See the screenshot below to show you the last four steps. 

 

Once done, you can follow the steps provided by AlexV above on how to create an item for the mileage. Then, use Bill or Expense from the + New menu to track it. To learn more about this process, see Steps 1 - 2 through this article: Set Up Manual Tracking For Mileage and Vehicle Expenses. 

 

For your third concern, you'll need to create another mileage transaction since the expense doesn't auto-increase as you do further miles. If you want to automatically track trips from start to finish, I'd suggest using the QBO mobile app. For more information, check out this article: Automatically Track Mileage. 

 

Lastly, I recommend running the Account QuickReport of mileage expense to view its associated transactions within a particular period. Just go back to the Chart of Accounts menu, locate the name, and click Run report from the Action column. The screenshot below serves as your visual guide. 

 

I'm here anytime you have other concerns. Stay safe, @aziz3210. 

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