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.
Record the reimbursable expense
Create a reimbursable expense
The Chart of Accounts page is only available on the web browser version of Wave.
- On the left-side menu, click Accounting > Chart of Accounts, and then select Add a New Account.
- Under Account Type, select Other Income under Income.
- Under Account Name, enter Reimbursed Expense.
- Click Save.
Create your invoice
- Create a new invoice.
- Add the reimbursable expense as a new item, as you would enter any product or service on an invoice.
When you add the reimbursable expense line, change the Income Account to the Reimbursable Expenses account. You can include the specific details of your reimbursable expense in the product description. - Add any other products, your customer’s details, and any additional information you need to include.
- Save the invoice.
- Click Approve draft on the following screen if creating the invoice in your web browser.
- Send the invoice to your customer.
- Once your customer pays the invoice, record a payment on the invoice.
Record the reimbursable expense
- Open the Transactions page.
- Add an expense transaction.
- Enter the date, amount and account and, in the Category field, select Refund for Income > Reimbursed Expenses.
- Select Save.
To confirm you recorded the expense correctly, in the left-side menu click Reports > Account Transactions (General Ledger), and under Account select Reimbursed Expense. You should see $0.00 for the reimbursed expense, as the income from the invoice created, and the expense entered on the Transactions page, offset one another.
Reports are only available in the web browser version of Wave.