Here is how to track reimbursable expenses as income:
From the Main menu, Edit > Preferences > Time & Expenses, activate Track Reimbursed Expenses as Income checkbox in the Company Preferences.
This in turn will add “Track reimbursed expenses in Income Acct” checkbox whenever you create an expense account. Example of Telephone Expense creation is shown below:
QuickBooks have automatically created Reimbursed Expenses-Income account, but how to manage it if you have many reimbursed expenses?
The easiest way is to create subaccounts in your parent Reimbursed Expenses-Income account to correspond with your expenses accounts. In the example above, create Reimbursable Telephone as a subaccount of Reimbursed Expenses-Income as follows:
Here is what happens behind the screen in reimbursable expenses:
1. When you enter Bill and assign an expense as reimbursable by checking Billable? Checkbox, it posts the value to the specified expense:
2. When you create Invoice for your customer/job, it reminds you that you have reimbursable expenses:
By clicking OK and select the Expenses bar, the reimbursable expenses for Joe Bake will appear:
3.When you add reimbursable expenses by clicking Add Time/Cost … bar in invoice form, it posts to the income account you specified for that expense:
