Billable expenses are costs you’re charged as part of a job that you want to recover from your customer. You might also refer to billable expenses as oncharging, onbilling, recharging, reimbursables, or pass on costs.
Xero has recently released a Billable Expense feature that allows you to tag expenses you’ve incurred, so they can be easily on-charged/assigned to your customers.
Xero prompts you to charge back expenses to your customer. When invoicing that customer in the future, you have the option to add the expenses to their sales invoice.
The items can be listed separately or consolidated into one item in the description if required.
If you wish to add a markup to these items, Xero can calculate this for you. To mark up 20% simply click into the unit price and enter *1.2
Billable Expenses Tutorial for Xero accounting software:
Janenne Poulter – Client Services Manager