Change the GL Impact when user Invoice Billable Expenses to customers from expense to income account

 

Solution:

 

1. Take note the expense category used on expense reports that are Billable to Customer.

2. Navigate to Setup > Accounting > Expense Categories

3. Take note of the Expense Account associated to the expense category.

4. Navigate to List > Accounting > Accounts > or Setup > Accounting > Manage Chart of Accounts

5. Verify that the Report Style box in the footer is not checked.

6. Select Edit on Expense Account used in the expense category.

7. In the Track Billable Expense in field, select an Income/Other Income Account > Save.

 

The GL Impact of a new invoice with billable expense is:

 

Debit: Accounts Receivable

Credit: Income/Other Account