Taming Billable Costs in QuickBooks

How to Avoid Accidental Billable Costs in QuickBooks

Many users link a job to an expense in order to do job costing, and don't want to invoice the customer for the expense. QuickBooks automatically selects "Billable" when you enter a customer or job in the Enter Bills or Write Checks windows, and sometimes you may not remember to deselect the billable check mark. That means your job costing reports are wrong, and it also means that when you prepare an invoice for a customer with an accidental billable cost you'll be surprised by a message asking if you want to add your accumulated billable costs to the invoice.

Before you create job costing reports, and/or before you begin invoicing customers, do a last-minute check in QuickBooks to see if any expenses were inadvertently marked "Billable".

Choose Reports | Jobs, Time & Mileage | Unbilled Costs By job from the QuickBooks menu bar. All transactions with costs marked "Billable" are displayed. Double-click each transaction and find the checkmarks in the Billable column. Deselect the check mark and save the transaction. When the report has no listings, it's safe to run job costing reports and create invoices.

Then, use the Feedback command on the QuickBooks Help menu to tell Intuit there should be a Preference setting for whether costs linked to jobs should default to Billable or Not Billable.

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