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We often receive the same Frequently Asked Questions (FAQs) about Xero software by both our clients and prospects.  So to help everyone out we are going to be regularly posting them in a blog – along with our answers of course!

I have expenses that I want to re-bill on to by customers, can Xero do that?

The simple answer is yes it can.

When you enter a purchase invoice onto Xero you need to click the ‘Assign expenses to a customer’ button at the bottom of the screen (Image 1).

 

 

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In the next screen, choose which lines of the invoice to allocate to which customer and click save.  You do not have to assign every line, and can assign each line to a different customer. If you want to split an expense between more than one customer, you will need to break the expense down into individual lines and assign each one separately. (Image 2).

 

 

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When you go to raise your sales invoice for your customer, the expenses you have marked as re-billable to them will appear in the top left corner (Image 3). Click the link and select the items you want to add to your sales invoice (Image 4).

 

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The selected expenses will then be added to your sales invoice (Image 5).

 

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It’s worth creating a separate sales code for rebillable expenses so you know which part of your turnover is genuine sales and which is just re-billed expenditure.  Be careful when adding VAT to re-billed expenses as some attract VAT (even if you didn’t pay it) and others do not.  More guidance on that can be found at HMRC here.

To view the Billable expenses you have still to bill on to your customers, go to Reports, All Reports and then select Billable Expenses – Outstanding on the right hand side.  Please note that if you mark an expense as rebillable it will sit on this report until it is billed on.  If you manually add an expense to a sales invoice rather than adding it through the process above, it will always remain there.

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