How do I invoice reimbursable goods purchased for a customer?

Apr 06, 2006 3 Replies
M

I pass along two types of expenses to the customer:



  1. items that I purchase and get reimbursed, e.g. computer hardware.
  2. expenses like parking fees, travel costs, etc.

I just bought and installed QuickBooks 2006 2 days ago. So far I only created a petty cash account, added my checking and credit card information, and created one single customer. Then I tried to create some invoices and it's been an exercise of frustration.



My question is how to do 1 above. The way I've doing this before using MS Money, and the way I understand this should be done based on how my taxes are done, is that when I purchase items for a customer that will get reimbursed, the expense goes into a Cost of Goods Sold category/account (this will then go into the corresponding line item on Schedule C). So, I created a credit card charge and under the account tab, I selected "Project related costs: Reimbursed Expenses" (which is of type Cost of Goods Sold). The problem is that I can't figure out how to invoice for this as the expense doesn't show up in the Billable Time and Costs window. To show up there, it seems that the reimbursable account needs to be of type Expense and not of type Cost of Goods Sold. So I'm about to create an account named "Costs of Goods Sold" of type Expenses so that I'm able to do this, but before I make a mistake I thought about asking here first.



I have to say the interface and the help menu of this software are maddening. For instance, from the help topic "Including reimbursable expenses on a billing statement":



  1. Open the appropriate customer register: a. Click Customer Center. b. Click the Customers & Jobs tab. c. Select the customer or job that the statement charges apply to. d. Click Related Activities at the top of the list and click Statement Charges.

Where is this "Related Activities"? I got someone else to help me find it, and two sets of eyes couldn't find it.



Another example, from the help topic "Adding reimbursable expenses to a sale":



  1. On the invoice or sales receipt form, enter the name of the customer and job for which you incurred the expenses.
  2. Click Expenses.

Where is this "Expenses"? I came across at least two other examples like these two.



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S

Your best bet would be to work with a QB Pro Advisor. I used Steve and Tami Cohen at Exact Accounting. I've been more than happy with the help they've given me. A couple of hours one on one, well in my case, two on one, was money well spent. Their URL is:

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By way of disclosure, I get noth>I pass along two types of expenses to the customer:

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G

Quickbooks is all about the item list.

It sounds like you have 1) non inventory parts - hit the check box - which you purchase for a specific customer/job. e.g. computer hardware.

2) Services and/or Other charges. e.g. expenses like parking fees, travel costs, etc.

Create items for these. When you buy the computer use that item and when you invoice the client use the same item. In the item you set the two accounts, one for the purchase and one for the sale. When you set up you services and other charges these don't have two accounts associated with them so you set them up either to be bought, bills, purchase orders, write checks - hit an expense account - or to be sold, sales orders, invoices, sales receipts - hit an income account.

Quickbooks is all about the item list.

Anyway, I suggest a talk with your tax guy. He'll have specific things he'll want you to do.

As to your first question, it is in a pulldown menu. In your second question, until the expense is incured for a specific customer job I don't think the choice is there.

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J

We invoice clients all the time for items purchased by us but for client use. When recording the purchase, you then enter the client account and make sure it is flagged as billable. When you make the invoice, you import billable expenses and it puts it into the invoice for you. In our case, we created an expense account called "Client Expenses". When you record the purchase, it credits the expense account. And when you invoice it, it debits the expense account. So by creating a separate expense account, you can see if you forgot to invoice anyone for stuff you bought for them, because the balance would be non-zero.

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