Have you ever encountered a scenario where you need to cover an expense, and later claim this expense as part of an invoice? You might refer to this type of case as assigning a cost to customers or needing to record a reimbursable expense.
To record such a transaction in Wave you can take the following steps:
- Add an account for your reimbursements on the Chart of Accounts page; ensure that the account is created as an income account.
- Next, let's create your invoice! On your invoice, the reimbursable expense you’re recording will be a product line item, just as any product or service you would add. When you add the reimbursable expense line, be sure to click Edit Income Account, and select the Reimbursable Expenses account we created in Step 1.
- Finish creating your invoice as normal - add any other products, your customer’s details, and any additional information you need to include.
Finally, we’ll need to correctly record the initial expense you are being reimbursed for.
- Go to Accounting > Transactions. Create a new transaction for the original expense you incurred with the travel. For specifics of what the transaction will look like please click View original article below.
- If you’d like to double check to ensure you’ve entered everything correctly (never a bad idea!) you can head to your Reports tab and take a look at your Account Transactions report for the Reimbursed Expense account.
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