There are three ways to get the reimbursable costs in QuickBooks, but only two will be used.
first Method – Cost / Cost Account Method: When recording costs incurred by a customer, click the Exposure tab on the Write Control or Costs tab. Enter the Accounts screen. Select the appropriate cost account number, select the appropriate customer, and do not check the column next to the billing icon above ("Collect" in later QuickBooks versions). Saving the transaction. You can now create an account with the customer and break the transaction into the Account after clicking the Time / Cost button.
Behind Scenes Details of this Method: By this method, the cost account is credited when the bill is generated for the client. This reduces the cost bill and does not increase the sales / revenue bill. If users want this – if users do not want the reimbursed costs to be recorded as revenue, this method should be used.
2nd Method – Cost Account / Cost Account Method: Similar to Method 1, click the Costs tab on the Write Check or the Billing screen when you enter a cost for a customer. Instead of selecting a cost account, select a COGS account. Then select the appropriate receiver. Unlike Method 1, note that the right column can not be verified.
Behind the Scenes Details of this Method: Unbillable "Unbilled Costs" is created. These appear in the Unpaid Cost Report, but if you click the Time / Cost button on the Account screen, they will not be displayed in that window. In other words, they will remain forever in the unpaid costs report and never fall into the client's account. For this reason, this method should not be used under any circumstances. If you need to enter the COGS account, follow Procedure 3.
3rd Method – The Elements tab Method: Go to the Items list and create a new one. Click on the box that says "This item is used for assembly or repayment." This sets the item so it can be used effectively on the Write Check / Input Accounts screen, and on the Invoice screen. Fill the item with the desired COGS account in the left box and the corresponding revenue box in the right box. Fill in the rest of the information as needed.
When you click on the Checks instead of the Payments tab or invoice the costs to be refunded, click the Items tab and select the item you just created. Fill in the right amount and do not place the right column. Save Transaction
When billing the customer, click the Time / Cost button and the item used above appears. Select and place QB on the client's account. Saving the Transaction
Behind the Scenes Details of this Method: When you type the item in the write checks, billing bills, or Credit Card Inputs screen, the amount will be added to the given COGS account by setting the item. If you use the item on the Invoice or Sales Documents screen, the amount will be charged to the Revenue Account when setting the entry.
This method can be used to include a mark for a refund. Contributes customer reimbursement to revenue and this is the only way to determine the gross margin without creating unrealized "unpaid costs".
This method may be difficult because there is some problem getting the item correctly. On the Edit Item screen, be sure to assign the correct COGS account to the "Purchasing Information" page and the correct Sales / Invoice Account on the "Sales Information" page.
Another reason for this method may be more difficult if the company wants to place a different amount of revenue and provide the various repayable transactions with COGS accounts. If this is the case, you need to create custom items, all of which can be customized according to their accounts.
Most people are likely to follow Method 1, but some will follow Method 3. If you need further help, you should seek advice from local accounting experts.
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