How do I mark up an expense that I’m rebilling a client for? What does this look like in my reports?
Perhaps you need to buy something for a client, but you’d like to mark up the price. You probably want the price you paid to be considered “cost of goods sold”, but the markup to be considered revenue. Here’s how you can mark up an expense:
Create an invoice and attach expenses to it as usual (Go here for more instructions on this)
Change the unit cost of the expense manually
3. Save/send invoice
When you receive payment for the invoice, your expense status will changed from ‘invoiced’ to ‘recouped’.
Take a look at your Profit and Loss report. The original expense amount (what you paid for it) shows up as “Cost of Goods Sold” The total marked-up expense amount shows up as Sales. Cost of goods sold gets subtracted from sales, so the difference between the two equals the mark up of the expense, which counts as income.