Adding reimburseable expenses to invoices

[Adrien Monteleone]

This would be a personal preference, but consider different names for those two accounts.

That is:

Revenue:Shipping & Handling
Expenses:Postage

If you have more than one reimbursable, you could insert that in the revenue tree like so: Revenue:Reimbursables:Shipping & Handling, but really it’s unnecessary. A charge is a charge is a charge. It’s all revenue. There’s nothing really special about it. (unlike sales tax collections, which are NOT revenue, but pass-through liabilities)

Invoices would generate this transaction:

Dr. Assets:Accounts Receivable
Cr. Revenue:Sales
Cr. Revenue:Shipping & Handling

When you ship the order and pay the Post Office:

Cr. Assets:Cash
Dr. Expenses:Postage

Using these names, your Income Statement (P&L) will be a bit easier to read and follow as the account names are more descriptive rather than ‘reimbursable’ for both revenue and expenses. This would be even more important if there would be more than one such reimbursable.

As I noted above, there’s no reason to handle these charges as any special case. If you sell physical products part of the sales amount for those items balances against a Cost of Goods sold expense. It’s a similar principle.


Regards,
Adrien

> On Mar 8, 2018, at 6:59 AM, DaCappie <h0wdyd3wdy at gmail.com> wrote:
> 
> So for the matching expense account, how often would that be updated?  In
> other words, when i receive a payment for $356.65, and $350 was for
> income:sales and $6.65 was for shipping/postage, would I manually add
> something about $6.65 to expenses:reimbursedexpenses at that time, which
> would balance out the original $6.65 that was on
> income:reimburseableexpenses?
> 
> 
> 
> 
> 
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