QB Issue Resolution:

The purposes of bookkeeping is to track everything as Gross. This is Gross Revenue for you and your Gross Expense, unless you have some sort of Trust Accounting, in which case covering the costs is an Other Asset for you, to be reimbursed, which clears the asset account, the same as a Custodial relationship.

Resolution for Issue 'Billing Pass through expenses and what account to hit?' available: Yes (Solved).
Source: Intuit Community forum.

Billing Pass through expenses and what account to hit?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

Support for Billing Pass
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Error Recovery for Billing Pass [Canada]
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