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Rozmore13
March 19, 2023
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What is the proper use of the Expense Transaction

  • March 19, 2023
  • 1 reply
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I am just starting the Advanced Proadvisor course.

 

In the first module is a discussion on the use of the Expense Transaction to a billable client. 

 

The initial entry of the expense is working fine.  I checked the Journal Entry and it credit cash and debits the expense properly.  (I added a check on billable and an associated client/customer).  I did not include a Product/Service Item to keep the example simple.

 

As the module indicates, I went to invoice and selected the customer, added the expense in question and saved.  When I look at the Journal Entry, it is debiting the A/R for the Customer and crediting the original expense category that I used to cost the Expense.

 

I also took a look at the Profit and Loss Detail which also indicated that the expense was at first debited and then credited upon the invoice.  How do I show the expense properly?

 

Am I not using the expense transaction properly?

 

Thanks for your attention.

 

 

 

Best answer by Carneil_C

Thanks for getting back on this thread and providing an additional screenshot to help me get on the same page, @Rozmore13. 

 

Doing this process is tricky. I'll share some insights about your concern to help you manage your expenses. 

 

As I can see on the second page of your screenshot, your expense transaction wasn't ideally offset. Thus, the Billable Expense Income account you've used differs from the Office Expense when invoicing the customer, resulting in the same debit to Office Expense and a corresponding credit to your Journal Entry and Profit and Loss Report. 

 

You can seek professional advice from your accountant to handle these transactions properly. They can give you a seamless process for recording these transactions to ensure your accounts' accuracy. If you're not affiliated with one, you can utilize our accountant tool to look for one in your area.

 

Moreover, I'll add this guide to learn more about recording your business expenses to complete a picture of your business and profit: Enter and manage expenses in QuickBooks Online. 

 

Please feel free to get in touch with me here for any additional questions about managing your business expenses. The Community always has your back. Have a great day. 

1 reply

S
SirielJeaB
March 19, 2023

@Rozmore13, we sincerely appreciate your continued participation in our Community forum. Our top priority is to give you accurate information so you can resolve your issue.

 

I'd like to assist you, but this appears to be an unusual transaction in QuickBooks Online. Could you please send us screenshots of these transactions? This will help us to provide appropriate solutions and information.

 

Your response is greatly appreciated, Rozmore13. Please don't hesitate to click the Reply button again. We're available 24/7. Have a nice day!

R
Rozmore13Author
March 20, 2023

I am attaching the documentation you requested.

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Carneil_CAnswer
March 20, 2023

Thanks for getting back on this thread and providing an additional screenshot to help me get on the same page, @Rozmore13. 

 

Doing this process is tricky. I'll share some insights about your concern to help you manage your expenses. 

 

As I can see on the second page of your screenshot, your expense transaction wasn't ideally offset. Thus, the Billable Expense Income account you've used differs from the Office Expense when invoicing the customer, resulting in the same debit to Office Expense and a corresponding credit to your Journal Entry and Profit and Loss Report. 

 

You can seek professional advice from your accountant to handle these transactions properly. They can give you a seamless process for recording these transactions to ensure your accounts' accuracy. If you're not affiliated with one, you can utilize our accountant tool to look for one in your area.

 

Moreover, I'll add this guide to learn more about recording your business expenses to complete a picture of your business and profit: Enter and manage expenses in QuickBooks Online. 

 

Please feel free to get in touch with me here for any additional questions about managing your business expenses. The Community always has your back. Have a great day. 

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