Cannot issue an invoice to the customer with an item that represents current asset account.

Julia1

Hi!

I am trying to issue an invoice for the reimbursement of travel expenses.

I would not like to set "reimbursable travel expenses" in my income account, as its not very accurate. I thought of setting it as a current asset account instead so it functions as a "loan" to the customer. Unfortunately, there is no option of adding an Item that represents assets in Invoice.

Please advise how to resolve it.

Thank you in advance,
Julia

Mikeg

Julia1,
If you are billing expenses that are out of pocket expenses such as travel then, the entire invoice including billed expenses are income to your business. The net effect would be zero on the income statement because you would have an offsetting expense posted. I have some clients that post reimbursed expenses for what they are i.e. travel, office etc and others that created an account Client Costs or Reimbursed Costs.
Mike G, CPA
www.mgfinancial.net
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