How do I record billable expenses. These are expenses I have incurred but invoice the client for, at the moment I have entered as sales but this is affecting my P&L.

Hi @hannah7,

I can point you in the right direction.

Be advised, this feature is exclusive to QuickBooks Online Plus. Before you can start entering billable expenses, you need to set up Billable Expenses option first.

Let me show you how:

1. Click the Gear icon, then select Account and Settings.
2. Click the Expenses tab.
3. In the Bills and expenses section, select the pencil icon to open the fields for editing.
4. Ensure that the following items are checked:
   • Show Items table on expense and purchase forms
   • Track expenses and items by customer
   • Make expenses and items billable
5. Select Save, then Done.

Next, here are the steps on how to enter a billable expense:

1. Create an expense transaction.
2. Select the customer to be billed for the item or expense from the Customer drop-down.
3. Select the Billable checkbox.

Lastly, here's how to add billable expenses to invoices:

1. Click the Plus (+) icon, then select Invoice.
2. Select the same customer you entered on the expense transaction earlier. Open billable expenses will populate the right side of the screen.
3. Select Add for the billable expense you like to include in the Invoice.
4. Save the transaction.

That's it, you're all set.

You may view these articles for your reference:

• How to remove a billable expense charge.
• How to enter, edit, or delete expenses.

Don't hesitate to leave me a comment below if you have any other questions.