In the Settings tab, Billable Expenses are expenses that a business incurs for its customers, expecting to be reimbursed later. These expenses might cover materials, external services, or travel costs. You can keep track of these expenses and subsequently bill the correct customer for them.
To start using Billable Expenses, go to Billable Expenses screen under Settings tab and make sure Enabled checkbox is checked.
When billable expenses are enabled, navigate to the Customers tab and click on the Edit columns button to activate the Uninvoiced column.
This enables you to monitor billable expenses associated with customers that have not yet been invoiced.
When you activate the billable expenses feature, a new account called Billable Expenses will be added to your Chart of Accounts.
This account subsequently becomes available for use in transactions such as Payments, Purchase Invoices, Expense Claims, among others.
To record billable expense on transactions, select the Billable Expenses account, you can then choose a Customer to allocate the expense to.
Since Billable Expenses is an asset account on the Balance Sheet, recording new billable expenses won't affect your Profit and Loss Statement. This is to make sure that expenses that are going to be reimbursed later are not inflating your income and expenses.