There are a few methods to account for reimbursements from customers in QuickBooks Online. Here is our primary method for accounting for customer reimbursements. If you are using QuickBooks Online, you can follow these steps:
- Set up an Expense account for tracking reimbursements:
- Go to the Chart of Accounts in QuickBooks Online.
- Click on “New” to create a new account.
- Select “Expense” as the account type.
- Give the account a name such as “Client Reimbursements” or “Reimbursable Expenses.”
- Save the account.
- Create an Expense transaction for the reimbursement:
- Click on the “+” icon at the top right corner of the QuickBooks Online dashboard.
- Choose “Expense” from the vendor section.
- Select the appropriate vendor or client.
- Enter the date of the reimbursement.
- In the Account field, choose the Expense account you created for reimbursements.
- Enter the amount of the reimbursement.
- Save the transaction.
- Associate the reimbursement with the original expense:
- If you have already entered the original expense in QuickBooks, you can link it to the reimbursement to keep the records organized.
- Open the original expense transaction in QuickBooks Online.
- Edit the transaction.
- Add a line item to the transaction for the reimbursement.
- In the “Account” field of the reimbursement line item, choose the Expense account for reimbursements.
- Enter a negative amount equal to the reimbursement amount.
- Save the transaction.
By following these steps, you will account for the reimbursement from the client in QuickBooks Online by categorizing it under the designated Expense account for reimbursements. Associating the reimbursement with the original expense helps maintain accurate records and ensures proper tracking of expenses.
