Reimbursable Expenses in QuickBooks

by Airedale

I have a question about reimbursable expenses. We’re a flying club. When we bill a customer for an hour of flying he is charged separately for an hour of airplane time and a fixed number of gallons of fuel at a standard rate that is fixed for the month. (Fuel price = fuel cost; we take no markup.)

When he buys fuel out of town, he submits his receipt for reimbursement. We run a customer credit, debiting the fuel account for the number of gallons he bought (at the standard rate) and he gets an AR credit. It’s exactly like we bought that number of gallons from him and put it into inventory, because that’s what we did.

This works just fine in the inventory account but it also removes the same number of gallons of fuel from the fuel Sales and COGS accounts. We do not want that, as we really did sell him the fuel as part of his hourly rate. Removing it from Sales/COGS makes those totals very misleading.

Short of setting up all our members (80) as vendors and faking a purchase each time someone submits for fuel reimbursement, is there any way to block the Sales/COGS recording?


If you are buying fuel that is setup as inventory, then there is no way to blck the Sales/cogs part of the transactions when using the Credit Memo window. That is how inventory items work in QB on that window (and also in the customer Invoice window).

Are you certain you want to buy their reimbursement as if it was inventory? It does not sound like inventory to me. It doesn’t sound like the fuel they sell to you actually goes into your inventory. What do they do with that fuel?

I’m thinking that you will need to set them up as vendors and use the Enter Bills/Pay Bills windows, rather than the Customer Credit Memo window. If you used the Enter Bills window with inventory items, it will credit A/P and debit your inventory. It will not have any impact on your P&L. The Customer Invoice and also the Customer Credit Memo both impact the P&L, and they also impact the inventory asset account.

Just some thoughts. I hope this answers your question about reimbursable expenses.

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