Billing Items to Customers
Billing items back to customers enables you to purchase items and supplies for an order or project, and then bill the cost to the customer. For example, a locksmith can bill a customer for a special safe they installed.
To bill items to customers, you first need to enable the feature. An administrator can go to Setup > Company > Enable Features > Transactions, check the Bill Costs To Customers box, and click Save.
When the feature is enabled, you can bill an item to a customer. You can bill items to customers on purchase orders or other purchase transactions.
Income from billable items posts to the income account setup in your Chart of Accounts.
For OneWorld accounts, you must also set up at least one tax schedule because Advanced Taxes is enabled in all OneWorld accounts.
In accounts without OneWorld, you can bill costs to customers using items created before enabling the Advanced Taxes feature. If you enable Advanced Taxes after creating an item, you must assign a tax schedule to the item to bill a customer.
To bill items to customers using purchase orders:
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Enter a purchase order for an item you want to bill to a customer.
When you enter a purchase order for a billable item, select the item and identify the customer or project, and then check the Billable box.
Note:You must bill the purchase order before you can bill the customer for the billable item.
To enter a purchase order for a billable item, go to Transactions > Purchases/Vendors > Enter Purchase Orders.
For more information about purchasing billable items, read Entering a Purchase Order.
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Bill the purchase order that includes the item you want to bill to a customer.
The bill for the billable item must identify the customer or project and have the Billable box checked.
To bill a purchase order, go to Transactions > Purchases/Vendors > Bill Purchase Orders.
For more information, read Billing a Purchase Order With Advanced Receiving.
After the purchase order is billed, this item can show on the Billable Items subtab of the customer bill.
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Enter an invoice or cash sale to bill the customer for the billable item.
When you create an invoice, apply the appropriate billable item on the Billable Items subtab. Click Mark All or Unmark All to check or clear all items that show on the subtab.
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To create an invoice, go to Billing > Sales > Create Invoices.
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For more information about creating an invoice, read Creating an Invoice.
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To create a cash sale, go to Billing > Sales > Enter Cash Sales.. For more information, see Cash Sales.
For more information about creating a cash sale, read Entering a Cash Sale.
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If you track class, department, and location at the line-item level, you can change these settings for this billable item.
When you have created the invoice or cash sale, the customer is billed for the item.
To bill items to customers using checks:
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Enter a check to pay a vendor for the item you want to bill to a customer. For more information, read Adding Items to a Check.
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On the Items subtab of the check, select the item you want to bill to the customer.
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Identify the customer or project and check the Billable box.
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Complete additional fields on the check as necessary.
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Click Save.
Now, this item can show on the Billable Items subtab of the customer bill.
To bill items to customers using credit card transactions:
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Enter a credit card transaction to pay a vendor for the item you want to bill to a customer. For more information, read Entering Company Credit Card Charges.
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On the Items subtab of the credit card transaction, select the item you want to bill to the customer.
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Identify the customer or project and check the Billable box.
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Complete additional fields on the credit card transaction as necessary.
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Click Save.
Now, this item can show on the Billable Items subtab of the customer bill.
Items Billable By Default
You can enable the Items Billable by Default preference. This preference lets you check the Billable box by default when you are purchasing items. After you select a customer on an item line of a purchase transaction, the Billable box is automatically checked.
The Items Billable by Default preference is enabled at Setup > Accounting > Preferences > Accounting Preferences > Time & Expenses. This preference is dependent on the Bill Costs to Customers feature.
When billing items back to customers, you can choose to include the date of service on all custom invoices except finance charge invoices. This is the date the bill for the items was entered.