A reimbursable expense is a cost you incur on behalf of a customer. Travel expenses and special materials or supplies are examples of common reimbursable expenses. When you bill your client, include these costs on the invoice so that they can reimburse you.
To record a reimbursable expense in Wave, follow these steps:
- Create an account for your reimbursements on the Chart of Accounts page; ensure that the account is created as an income account.
- Next, 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.
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.
- 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.
This article has been shortened and formatted to display in a small window. Read the full article in our Help Center.