Billing expenses back to customers enables you to bill customers for the costs you incur while working on a project for them. For example, a locksmith can bill a customer for subcontractor fees incurred to install a safe for a customer in another state. Show To bill expenses back to customers, you first need to enable the feature. An administrator can go to Setup > Company > Enable Features. On the Transactions subtab, check the Bill Costs To Customers box, and then click Save. When the feature is enabled, you can bill an expense to a customer. You can bill expenses to customers on purchase orders or other purchase transactions. Note: For OneWorld accounts, you must also set up at least one tax schedule because Advanced Taxes is enabled in all OneWorld accounts. Note: In accounts without OneWorld, you can bill costs to customers using items created before enabling the Advanced Taxes feature. If you enable Advanced Taxes after creating an item, you must assign a tax schedule to the item to bill a customer. To bill expenses to customers using purchase orders:
When you have created the invoice or cash sale, the customer is billed for the expense. To bill expenses to customers using checks:
Now, this expense can show on the Billable Items subtab of the customer bill. To bill expenses to customers using credit card transactions:
Now, this expense can show on the Billable Expenses subtab of the customer bill. Expenses Billable By DefaultYou can also enable the Expenses Billable by Default preference to check the Billable box by default when you are entering purchase orders. Then, when you select a customer on an item line of a purchase transaction, the Billable box is automatically checked. The Expenses Billable by Default preference is enabled at Setup > Accounting > Preferences > Accounting Preferences > Time & Expenses subtab. This preference is dependent on the Bill Costs to Customers feature. Copy Expense Memos to InvoicesYou can also set a preference for invoices to include memos entered on billable expenses. To set this preference, go to Setup > Accounting > Preferences > Accounting Preferences > Time & Expenses. Check the Copy Expense Memos to Invoices box and then click Save. Note: When you enable this preferences, the memos you have already entered on existing expense records show on invoices you create. When billing expenses back to customers, you can choose to include the date of service on all custom invoices except finance charge invoices. This is the date the bill for the expenses was entered. What does it mean for an expense to be billable?When your company incurs operational expenses while selling a product/service to your customers(For example, Shipping Costs), it is marked as billable. This is done so that the company could bill the customer and get it reimbursed.
How to add billable expenses to existing invoice in QuickBooks Online?Please follow the steps below.. Click Sales at the left menu. ... . Find the invoice and click it to expand the page.. Press Edit invoice button that appears in the right corner.. On the Invoice page, click on the arrow beside the Balance Due.. Tap on Add on the billable expense/s under Add to Invoice to add them.. Hit Save.. What is an example of a billable expense?Other examples of billable expenses include research and planning, online payment processing fees, tools for client engagement, materials costs, subscriptions and fees for service providers, and travel expenses. Let's dive into exactly why and how each of these is a billable expense.
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