How do I record a bill and then setup a reimbursement for it?

StanleySteamer

How do I record a bill and then setup a reimbursement for it? Example: Utility bill for $100. I want to see the expense as $100 in my reports, but bill my roommates for $50. Thank you

jacobs

Well, from an accounting standpoint, you should only see $50 in your expense report if you're going to get reimbursed for the other $50.

I have an Asset account I call Exchange which I use for things like this. For example, I buy concert tickets for us and friends, and they're going to pay me for their share. I shouldn't see the total purchase as my entertainment expense, only my portion. So for the purchase transaction in my credit card or checking account, I enter the whole amount, I enter one split line with the expense that's mine categorized properly, and another split line with a transfer to my Exchange asset account for what I'm owed. When I receive the payment, the deposit in my checking account is a transfer to Exchange the wipe out what I'm owed.

maddog

Does the amount you deposit into your Exchange asset account come out as "income" to you?

jacobs

No. Money transferred to an asset (or liability) account does not show as income (or expense) in Quicken, which is correct.

StanleySteamer

The reason I wanted to keep the full amount is for the ability to see where I can save money. I want to see the full amount of the bills so when I get quotes from other companies I am comparing apples to apples. They are ultimately my expenses because I own the house. I hope that makes sense. Any ideas?

jacobs

Well, you could pay your $100 utility bill and categorize it all as expense. Then, in a separate transaction, you could create a $50 increase in an asset account (what I called Exchange above, or which you could call Receivables if it's just going to be used for what you bill your roommates). This would have to be an uncategorized transaction, because you're basically creating this money owed out of thin air -- not something that passes muster in accounting, but it will accomplish what you want. Then, when you get the $50 payment, you'd enter a transaction as as deposit to your checking account, and have that transaction be a transfer to the asset account. So in the end, the asset account is zero, and the $100 is utility expense.

Or if you're running this as a business, and the money from the roommates is being treated as income, then you could do the same as I wrote above, but the transaction to increase the asset (the billing of the roommates) could be categorized as rental income.

It's up to you to do it the way that's most useful to you. I would consider that if you have roommates chipping in for the electric bill, then your electricity expense should be $50, not $100. Then, if you simply want to track the total outlay for this and perhaps a few other expenses, for the purpose of competitive shopping and lowering your costs, you could create a transaction report for the specific Payees involved -- the electric company in this case -- so you could see the total you've paid, only part of which would be your personal expense.

Another approach would be to use Tags for expenses that are split between you and your roommates. Split expenses, entering tags on each split for you or you roommates. In the case of the electric bill, one split would be $50 with a tag for you and a second split would be $50 with a split for roommates. Both could be categorized as utility expense. Then create a transaction report for Tag=roommates, which would encompass expenses paid out, like the electric bill, and money in when they pay you. At any given time, the total of this tag report, from the beginning of time through today, would be what they currently owe you. I don't think this is as useful as using an asset account, where you can see what you're owed at any time just by placing at the account value in the left sidebar, but if you don't mind generating the Tag report and you really want the $100 electric bill as an expense, this is another way to go.

StanleySteamer

Thanks! I will try those ideas.