QB Issue Resolution:

“it is indeed proper accounting to wash the expense out by posting the billing against if, IF it is not something they made a profit on.”

That’s a common misconception. Example:

I bought 5 rolls of stamps to mail a project on your behalf, and I charge you my time + that postage. The postage is at no markup. That postage still is my Expense and the chargeback to you is my Reimbursement as Gross Revenue or income. It offsets my expense because it is seen as “Net Income = 0” effect. But your Accounting still is supposed to track and report Gross Postage as expense and Gross Revenue for the event. And if this is Taxable materials, such as I bought you are new monitor as part of fixing your computer, and that is Taxable, that is Taxable Sales. That should help you realize Sales like this is Income, even if there is no markup, no profit, or even a Loss on sale of that item to the customer.

such as a combined telephone bill for sharing the same building?”

That not only isn’t what this person described (some sort of internal sharing reimbursement), but their Request is asking for proper help for the scenario described properly.

Resolution for Issue 'I have an expense that I pay & bill – the AP transaction and the accounts receivable transaction is running thru the expense account instead of the revenue account' available: Yes (Solved).
Source: Intuit Community forum.

I have an expense that I pay & bill – the AP transaction and the accounts receivable transaction is running thru the expense account instead of the revenue account: 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.

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