do you charge your customers more than what you pay for things that you need to service
their job well then in that case you need to know how to record marking up billable job expenses if
you have any questions about this topic you can leave them in the comment section below and I'll
do my best to help you and of course if you feel the video helped you I hope you will click like
and don't forget to subscribe to get updates on new videos that come out all the time there are
two ways to mark up billable job expenses the first way is simply change the amount of the
check or expense at the moment that you add it to an invoice and the second way is to set a default
markup percent in the account settings window so that QuickBooks will mark up the expense for you
we are up to example 3 in this little series of billable expenses and let's imagine on March 17th
we paid staples $550 for a job supplies for the Hanson Place job well that's very simple
to record we click new go over to expense we put march 17th by the way today is actually March 17th
in real life so that makes it easy and this is for the Hanson or the sorry the payee is Staples
and QuickBooks remembers that we often buy job supplies from Staples so that's why this expense
came up and it also remembered that the amount was 550 and that this is billable to the Hanson
place job now click Save and close and now let's check the result click reap courts custom reports
and go down to unbilled charges and you can see we only have one unbuilt charge that we just recorded
for the hanson place job $550 now let's imagine on March 20 we made another invoice for 20% more
of the work done on the Hanson place job and on this invoice we're going to charge Brown company
seven hundred and seventy dollars for the job supplies that we purchased just three days ago
for $550 so very simple we click new invoice then we choose the Hanson place job under Brown company
the date of the invoice is March 20 and as we learn before we have to copy from the estimate
before we add the billable expenses so we click Add from the estimate make sure that QuickBooks
remembers we're charging Brown company for an additional 20 percent of the Hanson place job
completed and we click copy to invoice and every line of the original estimate got copied to the
invoice now at the bottom we're going to add the billable expense just like we did in the prior
video when we click Add it gets copied on to the invoice but what we're able to do is click right
on it and right on the invoice we change it to 770 and then click Save and close now when we
click reports and go down to profit and loss by customer we take a look at the Hanson place job
now the total job supplies expense for Hanson place is 800 and if we double click we can see
all of the transactions that added up to that we originally paid 250 back on march 3rd then
on March 17th we paid another 550 specifically for supplies for the Hansen place job so 550 went
in as an expense for job supplies for the Hansen place job now I click the back arrow in my browser
to come back to this report but now again look at the Hansen place job and look at income from job
supplies is 770 because this is the first time that we're using a separate income account in
the Hansen place job for job supplies and that's the amount that we actually charge them so the 550
that we paid is part of this 800 but the 770 that we charge them is right here now before we record
our second example let's make a default markup of 40% and we do that in the account settings
window so we click in the top right we click for the cogwheel and go all the way across to
the last column and click account and settings now the area of settings that you will change is
the expense tab in the left panel and again we're dealing with this top area here and we click the
pencil icon to be able to edit this now we will mark up the expenses so we click this check mark
and we put in the number 40 because the number in that field is a percent so it will mark up
everything 40% when we place a billable expense or check on an invoice to a client and we click
Save and now let's see this in an example let's imagine on March 23rd we paid Staples $1000 for
supplies for the Hansen place job well that's very simple okay we go back we close the account
settings window click new expense and we're paying good old staples March 23rd and we
computer remembers that it's job supplies for staples but this time the amount is a thousand
and it's billable to the Hansen place job notice QuickBooks remembered the markup percent but you
could have also put it in here without setting the account settings you can put in a markup
percent at the moment that you put it on at the moment that you record the expense assuming you
mark the expense as billable so save and close and again let's just double-check the reports
to be sure that what we just recorded is on the unbilled charges list and apparently it is so but
notice how it records it it records the original thousand and it records the four hundred that
you're marking up now March 26th we made another invoice for twenty percent more of the work done
on the Hansen place job and we're going to add the March 23rd staples check to the invoice so we do
this new invoice what was the date of that March 26th yes okay so it's an invoice for the Hansen
place job under brown company the date is March 26th and of course here's the estimate and we can
click Add and we have completed another 20% of the Hansen place job so we click copy to invoice now
notice the billable expense for the total amount and it explains that there's a 40 percent markup
when we click Add notice what happens it gets added twice now rest assure that this will not
show to your client what you're looking at now is your records in your quickbooks online the client
will not know that you marked it up 40% see it says your customer won't see this and in order to
prove that we'll click print or preview and just to preview what it would look like to the client
see take a look you see the client will only see the total 1400 when you print it out send it for
email or preview it but you will know that it was originally a thousand and they separated the 400
in your window when you recorded it now we click Save and close and then we click yes now there
are no more unbilled charges and when we click reports profit and loss by customer take a look
at the Hanson place job income from job supplies is up to 1770 and job supplies expense is 1800 if
we open up the job supplies expense by double clicking you can see that the March 23rd that
we recorded when we paid the expense is only a thousand but if we go back in the browser and
look at the income section of the Hanson place job income from job supplies the 1700 double-click to
open it up you can see that a thousand and 770 now why is it only a thousand well if you hit back in
your browser and look again at the income from the Hanson place job it says four hundred dollars is
the markup so it will separate any markup income you have here at the bottom of the income section
and that's how you know your income from the different things that you build the client for
now one final important note markup is an income type of account that records all accumulated
income from marking up billable expenses it's an account that quickbooks online created and added
to your chart of accounts unfortunately you cannot choose the income account for the marked up amount
it must go into that one income account and as you can see if you look at the trial balance if
you go to reports and then go down to your trial balance you can see mark up four hundred that's
an income account that quickbooks added to the chart of accounts so income from job supplies
expense will only include the reimbursed amount that you paid for them and the marked up amount
for that or any other marked up expense will accumulate in that account so it's a little
bit limiting as far as reporting the different incomes if you mark up several different items
or several different reimbursable expenses you would have to double click and look in the mark up
account to see the income amount for each of the reimbursable expenses that you had marked up you