Not an accountant but I work at a warehouse providing service to clients. We frequently would ship large items for the clients and wait 2-3 weeks for the carrier to finalize the billing.
I’ve read Allocating Billable Expenses to various Expense accounts - #4 by Tut , which explains the rationale behind the billable expense implementation in Manager.
My question is, since the billable expense is treated as income on the P/L, is this feature appropriate for my use case? If I move the “Billable expenses - invoiced" account under Cost of Sale, it’s a negative amount as expected which doesn’t make sense to me.
Hello @Flakily8674,
If I’m not mistaken, you want to offset the Billable expense - invoiced against its expense – which I completely understandable since these expenses are not “your own” expenses so to speak.
In that sense, you should also skip classifying these expenses as if they were your own.
If you create a separate Profit and loss statement group to house billable expense account as well as your Billable expense - invoiced account. This group should ideally add up to Zero. In case the balance is not zero, this either means there’s still something to bill.
To hide the +/- details you can simply add this group to your Groups to collapse and this will save you the eyesore of the negative figures 
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Thank you for the quick response. Your solution works really well, no journal entry needed.
After creating a Purchase Invoice with $100 in billable expense and $100 in invoiced billable expense, B/S and P/L looks like this:
After getting paid from the Customer and paying the Supplier, both A/R and A/P are zero, then collapse the Passthrough Expenses group:
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