So I am a sole director ltd company and have a number of expenses that I will be rebilling at cost to a client. I have recorded the purchases, paid for them etc, and invoiced the client. But what should the purchases be categorised as? They aren’t a business purchase, but I have to record them to be able to reconcile payments from my contractee
If you’re rebilling them at cost you can “contra expenses” on the rebilled sales invoice so they counteract the original purchases and don’t show at all on your P&L (neither the purchase nor the rebilled sale). In that case it doesn’t really matter what category you list them under, you could either put them in the appropriate categories as if they were purchases for your business or you could create a new code specifically for the expenses you intend to rebill.
Yes, but I have already included them on my sales invoice to the client and he has paid them. So I would have to delete the invoice and re create them as you (and indeed quickfile) puts it in order to do it properly. Might be easier to just leave it and do it properly from now on…
Yeah, if you’ve already billed these things to the client as General Sales then the simplest way to fix it up post-hoc would be to journal debit General Sales and credit the relevant purchase code, to contra out both the purchase and the sale.
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