Reimbursement

Not sure of your context.

One definition is this. You or an employee purchase something for the company and then the company reimburses the individual.

Another definition is that the company purchase something for a customer as part of a job. When the time and direct materials are billed to the client, the invoice also includes the reimbursement from the customer for the item purchased by the company for the customer.

Which of these are you asking about?

-- Vic Roberts Replace xxx with vdr in e-mail address.

Reimbursable are those expense which are incurred on behalf of a third person and is recoverable from him. This account is created under type 'Other Current Asset'. Thus if you have to spent any amount on this account, in the Write Checks select 'Reimbursable' in the Account column and the person for whom the amount is spent in 'Cust:Job' column (to track the customer). When the amount is received back from that other person go to Banking > Make Deposits, in the 'From Account' column select 'Reimbursable' .

Mike Block - QuickBooks Tax Cut C.P.A. Intuit paid me to make QuickBooks better!

Total Income: $1100 Total Expenses: $100

Instead, I see (when it works)

Total Income: $1000

And then a bunch of duplicated entries in the detailed reimbursable list. Sometimes the reimbursables appear under income, sometimes under reimbursables (and I'm not just talking about balancing entries).

I have one invoice that was completely for reimbursables (no time). Both the charge and the payment appear under the reimbursables account. Even though the payment went through Accounts Receivable, it still doesn't show up in my gross. I notice that you don't use an invoice in the example below. Am I making things go hinkey when I use an invoice this way?

Confused...

-Will

Mike Block-Tax Cut CPA wrote:

I'll let Mike deal with your QB problems, but you have also asked a tax-related question that I will try to answer.

You report and pay taxes on your Net Profit, Line 31 of Schedule C. You could deduct the cost of the reimbursables as Cost of Goods Sold on Line 4 or as Other Expenses in Line 48. In either case you will not have to pay any income or SE tax on the reimbursements.

Depending upon how you set up QB, the reimbursements will be subtracted from the same account used to purchase them, or will be accumulated in special "reimbursement" accounts.

-- Vic Roberts Replace xxx with vdr in e-mail address.

That is because you must be coding the purchase of the items for your customer incorrectly. When you buy goods on behalf of your customers they should be coded to a customer purchases expense account. I also recommend that this expense account be of the type - Cost of Goods sold. As far as the problems you list below, god only knows what your doing. Without seeing the actual data its kind of difficult.