Billing Costs to Customers

NetSuite lets you to bill costs back to customers for time, items, and expenses you incur while working on a project for them. For example, a locksmith can bill costs to customers in the following ways:

To bill costs to customers, enable the feature first. An administrator can go to Setup > Company > Enable Features. On the Transactions subtab, check the Bill Costs To Customers box, and then click Save.

Note:

Unlike the items added to the Items subtab that are taxed based on the transaction shipping address, billable costs are taxed based on the customer's address.

Bill your costs to customers in one of the following ways:

The items and expenses appear as normal line items on the transaction. The customer only sees the selling price that includes the markup spread over the expense items. However, you'll see the markup as a separate entry when you view the invoice or cash sale in NetSuite.

Preferences for Billing Costs

When you use the Bill Costs to Customers feature, set a preference for invoices to include memos you enter on time and expense records. To set this preference, go to Setup > Accounting > Preferences > Accounting Preferences > Time & Expenses. Check the Copy Time Memos to Invoices and Copy Expense Memos to Invoices boxes and then click Save.

Note:

When you set these preferences, the memos you've already entered on existing time and expense records show on invoices you create.

If you want to classify billable costs by class or department, enable the Allow Per-Line Departments and Allow Per-Line Classes preferences at Setup > Accounting > Preferences > Accounting Preferences > General under Classifications.

To save time, you can create invoices in bulk for billable expenses, time, and items. For more information, read Invoicing Billable Customers.

Tracking Class, Department, and Location for Billable Costs

If you track class and department on the line-item level, the bill's classifications (class, department, and location) are maintained on the billable subtabs, regardless of the invoice header settings.

You can change the classifications on the billable subtabs of the invoice.

Note:

If you group class, department, and location on invoices, the billable subtabs will use the classifications from the invoice header.

Related Topics

General Notices