How to Enter Billable Expenses in QuickBooks?
                     What Is QuikBooks Billable
Expense?
Whatever your job, it's common practice to get things on behalf of 
others then pass those costs on later in an invoice, with or without 
mark up. QuickBooks involves a well-integrated way for creating 
this process that takes no time at all and for Assured that you just 
don't ignore to invoice your clients for anything they must be 
giving for.
Billable Expenses: About
Whether you enter your expense into QuickBooks as a bill, check, or 
expense, you may mark it as billable. It means that you'll both enter 
the customer's name that the expense has been paid for and check 
the billable box. If you would like to mark up the price, you'll enter 
the applicable percentage. Once you store your transaction the 
expense gets recorded forever, and a non-posting transaction is 
additionally recorded called a QuickBooks billable expense.
Create Billable Expense
Above may be a sample expense screen for some lights bought from 
Dan's Lighting that was for a project you were preparing for Diego 
Rodriquez. If you don't view the billable, client, and mark-up fields on 
your desktop. You'll need to activate them first or upgrade to the 
next level of QuickBooks Online.
Step 1
To activate these options, click the Gear icon within the upper right 
of QBO, then Account and Settings. Under the Expenses, the tab 
verifies the latter two features have turned on: track expenses and 
items by customer and make expenses and items billable. Also, tick 
the box for "mark up with a default rate of X%." You'll leave the 
default percent as 0.
Step 2
Then within the invoicing module of QuickBooks as you move to 
generate an invoice for Diego Rodriguez you'll be reminded about 
your unbilled, billable expenses. Counting on the version of 
QuickBooks that you simply are using the reminder could be in the 
kind of a pop-up or the expenses might just swank to the correct side 
during a "drawer," but either way. QuickBooks is keeping track of the 
expenses you marked billable but have yet to bill from outside 
clients.
Step 3
All you've got to try and do is add the billable expense to your 
invoice. Whatever information you wrote on the expense will show 
on the invoice. If you've got a mark-up, which will show as a separate 
item, but not when
sent to the customer or printed. The opposite nice feature of billable 
expenses is that these things can post to a special income account 
called Billable Expense Income on the P&L, making your reporting 
more informative.
Create Reoccurring Expenses
In the case of the IT Professional or anyone who sells a similar thing 
at a similar price to their client, there's even a faster way to do that.
Set up an item or product/service for the expense. Then anytime you 
get a similar item you'll just type the name of the item and everyone 
associated information will pre-populate. If the buy reoccurs on a 
similar day every month, you'll even save it as a reoccurring or 
memorized transaction, so it automatically posts. The memorized 
transaction will hold all the mandatory information. Including 
expense account, amount, description, mark-up percentage, 
transaction amount, and the client responsible for the charge.
Reporting Billable Expense
The option underneath the red box up the above screenshot says, 
Track billable expense and items as income. If this box hasn't ticked, 
creating a billable expense will create a positive entry to the chosen 
expense account. Also, as a corresponding negative expense within 
the same account, wiping the expense from your books. Your P&L 
Detail report would seem like this. If this was the sole transaction on 
your P&L your income would be $0.
As you'll see this place an invoice/income transaction type into an 
expense account. We feel this method portrays inaccurate financial 
statements. To repair this problem, we recommend you tick the box 
in Account and Settings > Expenses to inform QuickBooks to "track 
the expenses and items as income" instead.
Track Billable Bills and Expense as Income
Once this box has been ticked your financial statement will show 
both an income amount and an expense amount. This also works if 
using a Cost of products Sold type account. With this extra setting 
enabled your P&L will.
If you want help customizing billable expenses in QuickBooks to 
work for your business. Please communicate out to our accounting 
and bookkeeping team. We've experience customizing this and 
other QuickBooks features to several different industries.