Rebilled expenses showing as unpaid?

What am I doing wrong?

Created an “expenses” supplier. Logged some travel expenses. Selected those purchases and selected “Rebill to client” and “contra”. Created a client invoice with those expense, added a line for payment for services. Sent invoice. When money arrived in the bank (full amount of invoice, including expenses) tagged is as “payment from a client” and selected the invoice. Invoice now shows as paid, BUT expenses purchases are still showing as UNPAID. Surely the payment should be applied against the rebilled expenses as well as the original invoice?
Any help greatly appreciated.

The purchase should be marked paid when you actually paid out for the expense, the rebilled invoice is when the client reimbursed you. If it’s a notional expense (like the HMRC 45p/mile) rather than an actual cost then I guess you would just mark that as paid from drawings or director loan, but check with a real accountant to be sure.

Ah, thanks, that makes sense.


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