How to categorize costs passed onto the client

Marbles

If you have to pay up front the cost, for example a studio rental, then the client reimburses you. How is that handled in wave?

If I do a photoshoot in a studio that I rent, in the past I had the client pay directly, now all the studios are forcing paying up front or a substantial deposit when booking. So now I am paying 100% then adding that cost onto my charge.

Does anyone know what is the ideal way to manage this transaction?

Thanks!

Samd

Hey @Marbles - is the client reimbursing you as part of the invoice you send them? Or a separate payment?

If it's the first, we have a guide here.

You'd want to head to Accounting > Chart of Accounts, and make a new Income account under Other Income called 'Reimbursed Expenses'. When creating the invoice, you'll want to set this account as the income account for anything on your invoice that was already expensed that the customer would be paying for.

Now, head over to Accounting > Transactions, and record an expense transaction (Studio rental fees) - have this drawn from your main bank account, but categorize as 'Refund for Income > Reimbursed Expense'. It's a little backwards in flow than from what is intuitive, but this should cause it to balance out!