How to add a markup to items in QuickBooks Online?

To add a markup to items purchased for clients, you’ll need to use the billable expense feature in QuickBooks Online. This allows you to track costs and automatically apply a markup (like 15% or 20%) when invoicing your customer.

Note: This feature is available in QuickBooks Online Plus and Advanced.

Turn on billable expenses

1. Select the Settings gear icon, then Account and settings.
2. Go to the Expenses tab.
3. In the Bills and expenses section, select Edit (the pencil icon).
4. Check the following boxes:
   • Track expenses and items by customer
   • Make expenses and items billable
   • Show items table on expense and purchase forms
5. In the Markup section, enter your default percentage (for example, 15% or 20%).
   • You can change the Income account if you want billable income to post somewhere other than “Billable Expense Income.”
6. Select Save, then Done.

Apply the markup to a purchase

Once enabled, you can apply the markup when entering expenses:

1. Select + New and choose the transaction type (e.g., Expense, Bill, or Check).
2. Enter the purchase details.
3. In the item line, select the specific Item or Account.
4. Enter the Amount and select the Customer you want to bill.
5. Ensure the Billable checkbox is selected.
6. The markup percentage you set up will automatically appear in the Markup or Rate column. You can edit this specific percentage if needed for this transaction.
7. Select Save and close.

When you are ready to invoice the client, the billable expense and the markup will appear in the Add to Invoice window.