Reimbursable purchases vs expenses
Both are items you can bill to a client. They use different categories, so they land in different places.
- Choose Reimbursable Purchases when you bought something for the client and you are passing that cost on. The form says reimbursable purchases are not taxed. If you are reselling the item and need to charge sales tax, use Goods. There is no Markup type on this category.
- Choose Expenses for your own cost of doing the work, such as mileage, travel, printing, or samples. Taxable starts off, and you can turn it on. There is no markup. Leave Billable on to put it on an invoice. Turn Billable off if you only want to track it.
On the invoice, each one has its own section: Reimbursable Purchases and Expenses.
In Reports, Reimbursable summary lists reimbursable purchases at the cost you paid. Expense by category lists expenses, with the subcategory when you set one.
What your client sees
Your client sees the two sections separately, with the description and the price you bill. They do not see your markup, because these categories do not use markup. A reimbursable line is not taxed.
Common questions
You pay a workroom to fabricate something for the client, then bill the client that same cost. Use Reimbursable Purchases.
You drive to the job and bill the miles. Pick Expenses, then subcategory Mileage, and enter Miles Driven.
Yes. Turn Billable off. It stays in your items and can show in reports, and it will not appear under Add unbilled items.
Related guides
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