How to Enter Non-billable Client Expense
angienixon
Member Posts: 2
I need to create an entry for a client where we provided support and materials as a courtesy and won't be billing them for the time/materials, but do need to record these as an expense for the business. How/where? All I can find is "reimbursable expense" and this is a non-reimbursable.. 
0
Comments
angienixon,
You would not typically create an entry to record courtesy work. Those expenses have already been captured somewhere else on the income statement. Let's say for example, you have an employee that you bill out for $40 and hour. They are paid $20 per hour. They work on a project for 2 hours but you decide as a courtesy you are not going to bill for the time. Your cost of $40 ($20x2) is already categorized as payroll expense. So creating an entry would double count the expense. Hope that helps.