QB Issue Resolution:
“just gets canceled out” has nothing to do with anything.
You are supposed to track everything as Gross = in total.
That means you DID make that sale, and that is income. You incurred costs, and that is expense. Your reports will show the Net or Difference, and that is used for tax reporting.
“why not just exclude from the P/L every expense associated with a billable expense income item?”
Because selling something at cost, or passing it through with no markup, is Still a sale. Think about this:
I sell 1 robot for $1m. It costs me $999,998 to build it. How realistically are you understanding my business, if I tell you my income is $2? Because that is my Net, not my entire operation. My entire operation is all the data = gross.
And, if that sale is subject to sales taxes, even for no markup, you still have a Sale.
Resolution for Issue 'How to keep billable expenses off my profit/loss statement?' available: Yes (Solved).
Source: Intuit Community forum.
How to keep billable expenses off my profit/loss statement?: 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 Because selling something
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