How do I change the category which shows on the P&L?
Filing fees, which we charge our clients, showed up under SALES on the P&L. I changed that category to Filing Fees, and it really is a reimbursable expense. We buy a service, pass the cost thru to the client and get reimb when they pay. Isn’t this truly a Reimbursable expense? I have change it in the Chart of accounts, but cannot get my P&L to change the designation from SALES. When I click on a fee it simpy takes me from the P&L to the item on the invoice itself.
Is QB telling me I can’t designate this as an expanse bc we bill a client for the amount?
My biggest issues is that I can’t get the SALES to change on the P&L. Even if it is an income item, it is not SALES. How do I change this on my P&L?
Hi Kim, great question! It sounds like you may have selected Sales as the detailed account type which is why it continues to show up under Sales. There are a couple of ways you can handle reimbursable expenses. If you don’t want them to show up as income at all then I recommend that you set up a balance sheet account and when you pay for the filing fees code them to this balance sheet account.
In addition, when you bill the customer for these fees you need to set up an item called Filing fees on the items list, link it to the balance sheet account. Each time you bill the customer, select the filing fees item so that when they pay you it goes to the balance sheet account which will essentially “wash” out with the payments you have put there.
If you don’t mind it showing up on the income statement but you want to simply remove it from the Sales category, you need to go to the chart of accounts and edit the Filing fees account. In the Detail account field, select Other miscellaneous income or service fee income so that it does not show up under sales.
Let me know if this works out or if you have some additional questions.
Crystalynn Shelton, CPA
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