Hi
Hope someone can help me. When I raise an invoice to a client I want to include the expenses I have incurred on their behalf with the relevant amounts being posted to the correct nominals. I thought this would be classed as cost of sales but surely if I am invoicing the client to pay me back it is their expense, not mine. I just carry it for a while. How do I do this correctly? Thank you in advance. Si.
You need to create a disbursement account and use that to record recoverable expenses and cash received
Many thanks for your reply. I have created a client i.e Expeneses-Mrs Smith and a nominal account Expenses-Clients in the sales range of the nominal so do I have to invoice the client (expenses-mrs smith) and tag payment to sales ‘expenses client’? Sorry if I am being a bit dim!
I suggest create a balance sheet account for this so that any credits to account does not count towards your vat threshold if you are not vat registered
Once again, thank you for your pointers. 
. As I am just starting out with this software I think I might need a step by step guide to setting up and producing a rebilling client invoice, all balanced to the nominal. Everything else I get. Its just this that I can’t seem to grasp and I’m annoying myself!! (You too probably!).
At present QF has no option to allocate figures to Disbursement account (balance sheet) from sales invoices, best alternative is to create another separate sale account “Disbursement” and zero rate entries in it while creating normal invoice and record expenses in P&l under Disbursement expenses account.
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