How do I enter reimbursable expenses?

k2_chrissi

I am using Quicken for Business purposes. My customers pay me for material and services in one combined payment. How would I log the material as it is a reimbursable expense? At the end of the year I'll need to know the amount of reimbursable expenses so that I can deduct it from my gross income.

NotACPA

2 Options:

1. Record those initial expenses to a "Receivables" account, and when you're paid, show some of the money as coming from that account. The balance would go to an Income account.
2. Record those initial expenses to any category that you choose, and record that portion of the payment as coming from the same category.

In either case, the expense and payment would net to $0.

volvogirl

I assume you are first paying for the materials? Just enter the actual expenses when you pay it. You don't need to track the reimbursements separately for taxes. You will enter the total income you received (including the reimbursed amount) and then enter your actual expenses. That will net out and give you the Net Profit.