A Billable Reimbursable Expense is money spent by you or your employee on your customer's behalf and your customer agrees to pay for this expense.
For example, Paula's customer Atop Security would like 4 dozen cupcakes delivered to one of their clients. Paula's employee Salina agrees to do that. Once the cupcakes are delivered, Salina handed the receipt for the taxi fare that she has paid. So Paula will enter the fare as reimbursable when she's invoicing her customer Atop Security.
There are 3 steps involved in this that she will follow.
Step 1: Creating a Billable Reimbursable Expense
1. Go to Transactions and click Reimbursements.
2. Click Add New in the right menu.
3. Select Billable. Once you check Billable, it will add another field, Billable To, where you can add your customer's name who will be charged for this expense.
4. Select a name in Expense From.
Please note If you don't see the name or haven't added your employee yet, click Add New in the drop down menu.
5. Enter the Expense Number. This is an optional field and can be left blank.
Please note Adding an Expense Number will keep your records organized and easy to track.
6. Select the Date when the expense occurred (as on the transaction receipt submitted).
7. Enter Reference if any.
8. In Billable To, select or add customer's name who will be invoiced for the expense.
9. Enter the Description of the expense.
10. Enter Quantity/ Hours.
11. Enter the Price/ Rate.
12. Select the Account (Chart of Account).
13. Select the Tax.
14. Click Approve. You can save the entry as a Draft if the information entered is incomplete or needs to be confirmed.
Once the details are added, this is how a reimbursable expense will look like.
Step 2: Make Payment to the Reimbursable Expense
Now Paula has created and approved this expense. She will go ahead and reimburse Salina for the expense. To see how to reimburse the expenses claims, check out Reimbursing an Expense.
Step 3: Invoice the Customer
1. Go to Transactions and click Invoices.
2. Click Add New.
3. Select Customer Name.
Please note As soon as you select your customer's name and if there's any pending billable expense for that particular contact, it will appear right next to Customer Name field.
4. Enter all the details in the invoice and click Approve/ Approve & Send. Check Add New Invoice to learn how to create one.
Since Atop Security has a billable expense Paula will be able to add this expense whenever she is invoicing them.